Bitcoin (BTC) held strong at $30,000 on July 17 at the Wall Street open, defying expectations of a further downward movement. Traders and analysts closely monitored the market, anticipating potential price action in the coming days.
Bitcoin’s lackluster price movement over the weekend carried into the new trading week, with limited signs of volatility. On-chain monitoring resource Material Indicators highlighted the ongoing battle between Bitcoin bulls and bears, noting that both camps were fighting for dominance.
The analysis suggested that every time bears gained momentum, bulls would quickly replenish support at the $30,000 level. However, the analysis also emphasized that it was too early to confirm a bullish breakout because there hadn’t been a legitimate test of resistance yet. Traders were advised to exercise patience and discipline.
Some traders identified a “heavy divergence” between spot and derivatives markets, indicating that sellers could have the upper hand in the short term. This sentiment was shared by other traders who believed that sellers would gain control of the market direction, potentially leading to a breakdown from the current range.
In terms of price targets, trader CJ identified a short-term relief target between $30,000 and $31,000. However, he also noted that if Bitcoin were to reclaim higher levels, such as its April high, it would signify a solid recovery.
Aside from short-term price action, concerns arose regarding Bitcoin’s declining dominance in the overall cryptocurrency market. A dip below 50% dominance was considered unfavorable for BTC, as it could indicate a potential loss to altcoins. Some traders attributed this decline to regulatory events in the United States.
QCP Capital, a trading firm, tied the diminishing dominance to U.S. regulatory events and predicted that Bitcoin’s dominance would continue to decrease until the decision on a BTC physical ETF or until macro factors took over again.
The recent legal rebuke of the U.S. Securities and Exchange Commission (SEC) over allegations regarding the sale of altcoin XRP was seen as a mixed blessing for Bitcoin investors. Some analysts suggested that altcoins could gain more market share as U.S. investor confidence returned.
Bitcoin’s market dominance chart reflected the potential decline, with experts predicting that Bitcoin could lose ground to altcoins in the near future.
It’s important to note that this article does not provide investment advice or recommendations. Readers are encouraged to conduct their own research and exercise caution when making investment decisions.
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