06.12.2021

Bitcoin Returns To Bull Market: BTC Price Increases 12%

The cryptocurrency market has had a difficult week. After falling from all-time highs on the previous Sunday, the bitcoin price resumed its decline on Thursday until it reached a local low below $ 48,000.In just two days, the volume of liquidations on crypto exchanges exceeded $ 14 billion.

With the beginning of the new week, the market moved to a recovery. Having set a lower low at $ 47,000 shortly after midnight, bitcoin gained more than 12% in a few hours and is trading around $ 52,800 at time of publication. Growth from minimum to maximum amounted to almost $ 6,000. Crypto market capitalization is again more than $ 2 trillion.

The last jump came with the closing of the gap in the Bitcoin futures chart of the Chicago Mercantile Exchange and the squeeze of short positions. The volume of liquidations of such positions in the last four hours amounted to $ 240 million. The total volume of liquidations per day exceeds $ 1 billion, with the majority of the liquidated positions again on the bullish side.

The last week ended for bitcoin with the second largest red candlestick in the history of cryptocurrency. As noted by the founder of Global Macro Investor and Real Vision Group Raul Pal, against this background, the market approached the levels of March 2020 in terms of oversold rates. Oversold is determined according to the Relative Strength Index (RSI) and is used to describe situations when the price has fallen too quickly and deeply, that is, growth is expected.

“Corrections in a bull market represent opportunities, not threats,” Pal writes.

Analysts at Glassnode noted that the share of losing bitcoin addresses hit a six-month high last week. However, almost 86% of cryptocurrency coins still remain profitable for their holders.

Many cryptocurrencies in the previous segment updated their lows in several weeks. A group of assets belonging to the Solana ecosystem stands out against the general background. Solana is developing a high-performance smart contract platform and alternative to Ethereum that combines Proof-of-Stake and Proof-of-History consensus mechanisms.

Solana’s own token (SOL) has risen in price by 25% per day to a new all-time high above $ 48. The growth for the week was 80%, and since the beginning of the year – 2860%. SOL’s capitalization reached $ 13 billion for the first time, making it the 14th largest asset in the cryptocurrency market.

Explaining SOL’s strong performance amid the general downtrend, FTX founder Sam Bankman-Fried said:

“Traders in the SOL market may not have sat that deep in margin longs, so there were fewer liquidations.”

Many believe that we are entering another “altseason”, since traders have switched to testing coins from the top ten CoinMarketCap since the end of last week.

CoinShares strategist Meltem Demiros drew attention to the sharp decline in the bitcoin dominance index. This indicator dropped below 50% over the weekend. The last time he was at this level was in the winter of 2018.

Today, the dominance of BTC has grown slightly. Now the share of bitcoin in the market is 50.8%. Demiros shares the point of view of those experts who believe that we are entering the “alseason”.

According to the forecasts of the CoinShares strategist, this week altcoins will be able to bypass BTC and update the highs. Ether (ETH), for example, has risen in price today to $ 2479 (+ 12%). Binance Coin (BNB) and Cardano (ADA) added 10% and 8% to $ 543 and $ 1.3, respectively.

The UniSwap token (UNI) turned out to be the most productive of the top ten cryptocurrencies. This coin, representing the DeFi market, skyrocketed nearly 19% to $ 36.2. Market capitalization on Monday, April 26, again came close to $ 2 trillion.

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