The global market capitalization has been stuck around $1.55 trillion for the past few days, as no major price movement has been witnessed. Despite the volume remaining within an average range, the top 10 tokens have failed to record an adequate recovery. Besides, the altcoins, which maintained a bullish trend while BTC prices consolidated below $40,000, have also fallen prey to the bears.
The altcoins were expected to gain significant momentum as the BTC dominance dropped from the highs of 54% to levels below 50%. As the dominance surged to mark highs, the BTC price also soared, marking new yearly highs above $48,500. Further, both levels dropped heavily. While the BTC price marked the interim low of around $38,600, the dominance plunged below 50%.
Although both of them have triggered a healthy rebound, the rally continues to remain under bearish divergence as the dominance is about to face a major drop ahead.
Market conditions tend to change very frequently. After sustained growth for over 400 days, a reasonable correction has made its way out. As the descending trend has already begun, the next pitstop could drag the levels below 50% at 49% to test the 50D EMA or even lower to 48% or 47% or lower. Therefore, we need to wait and watch, as the variation in the dominance may not directly impact the price levels, but when it goes bearish, the altcoin’s value tends to increase.
Besides, it has been noticed that the popular altcoins have failed to gain momentum as the small-cap altcoins like SUI, BLUR, MANTA, AKT, etc. and many more have been surging. While these tokens appear to have reached their interim top, a minor correction is in play. This indicates these tokens have less impact on the BTC price consolidation, and as a result, the bulls have shifted their focus to these tokens rather than the top 10 altcoins.
Hence, in the coming days, new tokens may mark their strength in the top performers list, with the popular ones continuing to consolidate.
Credit: Source link