Bitcoin price broke below a month-long uptrend, but the broad recovery off January lows remains intact
Bitcoin, Ether, and other significant cryptos fell significantly amid continued macroeconomic turmoil and new evidence of the U.S. Federal Reserve’s move to hawkishness. At the time of writing, the Bitcoin price is changing hands at $43,351.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price and most cryptocurrencies traded lower, tracking losses in global equity markets
Bitcoin was down by 4% over the past 24 hours, although technicals indicate support around $40,000-$43,000 could stabilize the week-long pullback in price. Meanwhile, altcoins declined, such as Ether (ETH) by 5%, a 14% drop in RUNE, and an 11% fall in DOGE.
The chart below shows a slight uptick in bitcoin’s dominance ratio, or its market cap relative to the total crypto market cap, over the past 24 hours. That suggests a lower appetite for risk among crypto traders.
Still, the recent uptick does not represent a changing trend. Since October of last year, the dominance ratio has been capped below 47% and remains in a year-long range. A decisive breakout above 50% (bearish) or a breakdown below 40% (bullish) would signal a shift from neutral to risk-on or risk-off. For now, it appears that some crypto buyers remain on the sidelines.
Ether (ETH), the second-largest crypto by market cap, fell on even harder times, tumbling almost 7% to change hands just above $3,200. All significant altcoins were even further in the red, with Solana (SOL) down over 10% and Cardano (ADA) and Polkadot (DOT) each down about 8% at specific points. The meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) were off about 12% and 9%, respectively.
🐳 #Stablecoin whale transactions have increased mildly as #crypto markets have dipped. Just as we see spikes in whale transactions near price tops for non-stablecoins, $USDT, $USDC, $BUSD, $TUSD, and $DAI generally spike during the best buy opportunities. https://t.co/fjwGdjPbRX pic.twitter.com/nTugOgiTpq
— Santiment (@santimentfeed) April 7, 2022
Overall, Bitcoin remains in pullback mode after failing to break above the $48,000 resistance level last week.
On intraday charts, BTC broke below a month-long uptrend. That means short-term sellers are in control, especially after the breakout level of around $45,000 was rejected on Tuesday. Recent breakdowns on the charts have confirmed negative momentum signals, although pullbacks appear limited. For now, the broader recovery from January lows remains intact.
The overall cryptocurrency market cap stands at $1.988 trillion, and Bitcoin’s dominance rate is 41.4%.
Read more:
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- Bitcoin Price And Others Were Off After Hawkish Remarks By Federal Reserve Governor Lael Brainard