Bitcoin was holding above the psychological support level of $6,000, extending bulls' hopes that the pullback is still expected.
"Looking ahead, I don't think we're at the end of the cycle just yet and I can see bitcoin and other cryptocurrencies continuing to fall before a meaningful return back up".
He explained that in the Bitcoin futures market, investors are incentivized to intentionally bring down the price of Bitcoin to cash out their short contracts and the simultaneous movements of a large number of retail traders to dump BTC on the market may have caused the previous drop. Push for the $6,800 resistance level by getting on the bearish market's heels and once this is broken, the drivers sit will be back in the hands on the bullish market.
Why this might be a good sign is because the last time this was, is in December 2017, when bitcoin prices were at their all-time high of about $18,000. The price of the cryptocurrency also dropped while Bitcoin dominance increases.
This suggests that investors are running away from altcoins and getting behind the mother of all cryptocurrencies.
Networks like EOS have a functionality and structure quite similar to that of the ETH network and thats why they have been able to openly challenge the market of ETH and this is beginning to eat up the market share of ETH. Altcoins have experienced a torrid time over the past three months, which has allowed Bitcoin dominance to rise from 36% to 50% as it stand today.
Having opened at $6,283.65, the original cryptocurrency spent most of the day wobbling in a tight range above the $6,300 level. This is a pattern which has been seen multiple times in the past. Second, even though the entire market is in a tailspin, Bitcoin continues to receive positive news which is keeping investors in the game. This has always been the case and the success or failure of bitcoin has always dictated the position of all other cryptos. Over the last 60 days or so, Bitcoin has really been the leader - a lot of that had to do with the speculation about an ETF.
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