The price of Bitcoin (BTC) continues to evolve in a trading range, while the outperformance phase of Ether (ETH) is confirmed. With the dominance of Bitcoin having fallen below the 50% threshold and continuing to decline, the movement of capital towards altcoins continues.
This year 2021, the price of Bitcoin (BTC) has certainly set new historical records, but it has been blocking for 9 weeks under the extreme technical resistance of $ 60,000 (€ 50,000). This pause phase is very long-lasting for the underlying trend and it is now clear that this range will continue this month of May.
In parallel with this lateral price trend, the relative weight of BTC within the crypto market capitalization (this is called dominance) has fallen vertically, recently tipping below the 50% threshold and continuing. its fold.
This is a movement of capital towards altcoins, it is a good market data to see the crypto spectrum of institutional traders widen. The current big winner in this liquidity rotation is Ether (ETH). The graph below illustrates the rebalancing underway between the dominance of BTC and the dominance of ETH, with a market tending to reach their respective weights of January 2018. The momentum is solid, we think ETH will continue to outperform this May.
Technical analysis of Bitcoin’s price reveals little new information in recent sessions. The bullish technical trap that followed Coinbase’s listing on the Nasdaq and the recent technical rebound confirms that the market is oscillating in a horizontal technical trading range between € 35,000 support and € 50,000 resistance. This delay has a good probability of continuing this month of May, a period which generally puts “risky” assets under pressure. The decline in BTC dominance should continue towards 40% before a rebound that could take place when the trading range is resolved bullish by the end of spring.
