Bitcoin (BTC) hit a 48-hour high overnight on May 20 as the weakness of the US dollar gave bulls some space to breathe.
The dollar’s strength has weakened after a 20-year record
Data from Cointelegraph Markets Pro and TradingView recorded a maximum of TC 30,725 for BTC / USD on the bitstamp.
The pair still struggled to flip 30,000 for reliable support yet avoided a deep retreat and helped allay fears that last week’s $ 23,800 capitulation event failed to mark the bottom.
The US Dollar Index (DXY) provides the backdrop for the relatively strong performance of Bitcoin, which hit a two-decade high and plunged 2% in one week.
This has been seen to ease some pressure on the stock market, with the S&P 500 closing 0.58% lower at the start of the week on May 19 and closing at the Nasdaq 100.
USD Index (DXY) 1 hour candlestick chart. Source: Tradingview
Although the largest cryptocurrency was hovering below 50% of its all-time high, it was punishing market laggards, one analyst noted.
“Today, newcomers who joined last year lost -34%,” Ki Young Xu, CEO of analytics platform CryptoCount, wrote in multiple tweets that day.
Key has highlighted a chart of the band of unsustainable transaction output (UTXOs) showing the age of the investment. Those who previously only experienced a “bear cycle” are now 39% less, he concluded, while the old currency is still gaining.
“So here’s the hopscotch for the bears. If that BTC macro crashes so much due to the crisis and all the bitcoin institutions go underwater, it could cost 14,000 based on the historic MDD,” he added.
Multiple predictions of a major BTC price decline continue to circulate, with some falling below $ 14,000, according to a report by Quentelegraph.
Altcoins roll over
Meanwhile, attention has been focused on Bitcoin’s growing market presence versus altcoins.
Related: Bitcoin must protect these price levels to avoid a ‘very deep’ drop: Analysis
After the defeat of Terra LUNA, the sentiment outside BTC had cooled, and now there were signs that the Alts could quickly relinquish dominance.
At 44.8%, Bitcoin’s share of the total cryptocurrency market cap at the time of writing is the highest since October 2021.
According to the popular Twitter account IncomeSharks forecast, “we could see the dominance recover up to 60%.”
“So you have to be careful with alts and trade them with tough stops. There is a good chance that the money will leave Alts and go back to BTC. ”
A 60% BTC market dominance would represent a level not seen since March last year.
Popular analyst Pierre warns, “I noticed that most Alts have failed to break their H4 trend despite yesterday’s move in BTC.”
“If the BTC gets stuck in that range or settles on the bad side, most of them are expected to die twice as hard.”
Bitcoin Dominance 1 Week Candlestick Chart. Source: Tradingview
The opinions and opinions expressed herein do not necessarily reflect the views of the author and not necessarily those of Cointelegraph.com. Every investment and trading step involves risk, so you should do your own research when making decisions.