Bitcoin price continued its decline closer to $41,000 on Friday. At the time of writing, BTC price is $41,148. Institutions like Tether and MicroStrategy are keen on BTC accumulation and the largest cryptocurrency’s ETFs have dethroned Silver as the second largest commodity.
Despite its resounding success BTC ETFs have failed to catalyze a rally in the asset’s price. Bitcoin’s dominance is on a decline and altcoins are rallying in the ongoing cycle.
Also read: Bitcoin, Ethereum and XRP hit peak profitability in ongoing cycle amidst altcoin season
Bitcoin price continued to decline despite ETF success and demand among institutions. BTC price hit $41,148 on Friday after falling through support at the 50-day Exponential Moving Average, at $42,084.
Bitcoin price is likely to find support in the zone between $38,064 and $40,796. According to IntoTheBlock data, 77.83% of the wallets holding Bitcoin are currently profitable.
A decline below the $38,064 support level could see BTC nosedive to the 38.2% Fibonacci Retracement of the price drop between November 2021 and 2022, at $36,747.
BTC/USDT 1-day chart
If Bitcoin price sees a daily candlestick close above the 50-day EMA at $42,085, a recovery in BTC price is likely, it could invalidate the bearish thesis for the cryptocurrency.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.