Worrying Signs Appear as Bitcoin Volume Gives Way to Altcoins: Analysis

The cryptocurrency market stays in a state of rangebound buying and selling, though, over the previous 24 hours, the volatility is beginning to decide up.

Bitcoin tried a push towards $20K and failed, whereas many altcoins are additionally charting some positive factors, albeit gentle, with sure exceptions. Nevertheless, based on a CryptoQuant analyst, sure worrying indicators are beginning to take form.

Bitcoin Makes an attempt to Push $20K

For the primary time shortly, Bitcoin’s volatility began choosing up. Throughout yesterday’s buying and selling session, the cryptocurrency soared from round $19,100 to $19,700 in a matter of hours.

btc_price_chart_24101 — Supply: Binance through TradingView

As seen within the chart above, the final time this occurred was about six days in the past, and as soon as once more, BTC’s makes an attempt to problem $20K had been abruptly halted.

In the meantime, your complete market stays in a state of maximum concern, according to AlternativeMe. This metric sits near its 3-month lows on the time of this writing.

btc_sentiment_chart_24101 — Supply: AlternativeMe

Worrying Indicators Seem

In accordance with the volatility prior to now 24 hours, an analyst from CryptoQuant has noticed that, for the primary time shortly, half of the buying and selling quantity on exchanges got here from altcoins.

After a interval of 1 month the place Bitcoin was probably the most traded coin on exchanges, altcoins began to dominate. Yesterday, 50% of the buying and selling quantity on exchanges come from altcoins. Based mostly on historic knowledge, this isn’t good for the market.

I additionally added a long-term chart. When altcoins traded heaviliy on exchanges (dominance round 50%).

-> November 2021- January 2022: BTC Dropped from $67K to $36K

-> April 2022 – June 2022: drop from $47K to $20k

btc_volume_chart_2410 — Supply: CryptoQuant

That stated, Bitcoin’s dominance – the metric used to gauge its share relative to that of your complete market, remained comparatively flat through the previous 24 hours. This implies that altcoins have thus far did not capitalize on the transfer.

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