Bitcoin price was roughly flat over the past 24 hours as trading volume continued to decline

Bitcoin price has seen a rollercoaster ride in 2021, and even though BTC has corrected sharply from its all-time high at $69,000, the digital asset is still up 60% year to date. At the time of writing, BTC is changing hands at $46,292.

bitcoin-price-was-roughly-flat-over-the-past-24-hours-as-trading-volume-continued-to-decline

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price continued to range, while ETH turned to green

With inflation soaring in the United States and some other parts of the world, Bitcoin’s outperformance over gold suggests that investors may be seeing it as a better hedge against inflation when compared to gold.

Bitcoin continued to trade in a narrowed range. At writing, the oldest cryptocurrency was trading slightly above $46,000 little changed in the past 24 hours. Bitcoin’s little movement, short-term holders, bears most of the pain, which creates increased sell-side pressure.

bitcoin-price-was-roughly-flat-over-the-past-24-hours-as-trading-volume-continued-to-decline[1]

Source: Glassnode

However, Bitcoin fell towards the $44,000-$45,000 support area. BTC has been stuck in a month-long trading range after a near 20% crash in early December discouraged some buyers. Since then, the Relative Strength Index (RSI) signaled a few oversold readings, although price gains have been muted compared to prior signals.

Meanwhile, ETH recovered some losses yesterday, moving above $3,800 at writing. A few other layers one token also gained, such as Internet Computer (ICP), Cosmos (ATOM), and Celo (CELO), were among some of the biggest winners of the day.

“Bitcoin’s & Ethereum’s respective exchange supplies indicate that the previous two years have been the most sustained exodus of coins moving away from exchanges. There is 25% less of BTC’s supply on exchanges compared to 2 years ago, and 47% less ETH”, Santiment stated.

bitcoin-price-was-roughly-flat-over-the-past-24-hours-as-trading-volume-continued-to-decline

Source: Santiment

The indicators suggest a bounce is possible, albeit capped towards the $55,000 resistance. During the year, the total crypto market cap has grown to around $3 trillion, but Bitcoin Dominance has dropped from approximately 70% at the start of the year to 40%. This shows that some altcoins have outperformed Bitcoin by a considerable margin.

The overall cryptocurrency market cap stands at $2.226 trillion, and Bitcoin Dominance is 39.3%.

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