Bitcoin (BTC) is testing lower levels again after failing to overcome the USD 60,000 resistance – and indicators are suggesting the downturn is not over yet.
BTC / USD rebounded from $ 55,000 overnight on Monday, hours after hitting local highs of nearly $ 59,000 in the early uptrend.
With sellers still closer to all-time highs of $ 64,500, the largest cryptocurrency still has a lot to do to break out of its current broad trading range.
BTC returns to exchange
One metric that could cause problems for bulls soon is total BTC balance on cryptocurrency exchanges.
While there was a generally strong downward trend in the past year, local supply peaks – when dealers send coins back to their exchange accounts for a possible quick sale – tend to reflect a more sales-oriented mentality.
This is not the case with every exchange this week. According to the surveillance resource Bybt, 16,222 BTC has entered the world's leading Binance group in the past seven days. In contrast, the Coinbase Pro institutional platform actually lost 11,947 BTC, which is in line with the overall trend.
Binance is not alone, however – Okex, Huobi, Bitfinex, and Kraken have all seen their BTC balances grow in the past 24 hours.
As Cointelegraph reported, a familiar face from previous mood changes is back this week – greed.
As measured by the Crypto Fear & Greed Index, which measures trader sentiment using a basket of weighted factors, the appetite for a sell-off increases even when price movements are no longer positive.
On Tuesday, the index gave an overall rating of the crypto market of 68/100, which corresponds to "greed" as a general sentiment driver.
Crypto Fear & Greed Index. Source: Alternative.me
This is still below its mid-1990s high at the beginning of the year – a level that almost guarantees a sell-off – but the volatility ensures the index doesn't stay in the same zone for long. "Greed" can turn into "extreme greed" or "extreme fear" in days or even faster.
For example, on April 27, the index was only 27/100.
Dogecoin is increasing the bitcoin pressure on altcoins
Last but not least, perhaps the most noticeable factor in problems for Bitcoin this week is: Altcoins.
Initially, it was Ether (ETH) that led the pack, beating Bitcoin to an all-time high on Monday with its $ 3,000 journey.
Now Dogecoin (DOGE) is leaving the rest in the dust, again above $ 0.47 after being integrated on the popular eToro trading platform.
DOGE / USD is up 72% in a week versus Bitcoin's 3% at the time of writing.
BTC / USD vs. DOGE / USD line chart. Source: trade view
As altcoin waves erupt in battles, the sentiment among analysts is increasingly a longer-term trend to take center stage before bitcoin can regain lost time and dominance.
As Cointelegraph reported, one indicator even suggests that combined altcoin market capitalization could explode by more than 27,000% by early 2022.
"The next two to three months will be epic for altcoins," said popular Twitter trader Johnny, summing up the followers and also forecasting a short-term price target of $ 5,000 for Ethereum.
Bitcoin's market share is currently 46.3% and has been falling thanks to the inflows of altcoin.