3 reasons why Bitcoin is on shaky ground after failing to retake $60K
May 4, 2021. Summarized by summa-bot.
Compression ratio: 43.5%. 1 min read.
Bitcoin bulls face altcoins and rising trader sell sentiment as BTC drops.
Bitcoin (BTC) is back testing lower levels after failing to conquer $60,000 resistance — and indicators suggest the downturn is not over.
BTC/USD bounced off $55,000 overnight on Monday, hours after hitting local highs of nearly $59,000 in bullish early trading.
While seeing a general steep downtrend throughout the past year, local spikes in supply — when traders send coins back to their exchange accounts for potential quick sale — tends to reflect a more selling-driven mentality entering.
Yet Binance is not alone — Okex, Huobi, Bitfinex and Kraken have all seen their BTC balances tick up in the last 24 hours.
As Cointelegraph reported, a familiar face from sentiment changes past is back this week — greed.
Tracked by the Crypto Fear & Greed Index, which measures trader sentiment using a basket of weighted factors, appetite for a sell-off is rising, even as price action is no longer positive.
Last but not least is perhaps the most conspicuous factor at play when it comes to problems for Bitcoin this week: altcoins.
DOGE/USD was up 72% in a week compared with Bitcoin’s 3% at the time of writing.
While altcoin surges come in bouts, the mood among analysts is increasingly one of a longer-term trend taking center stage before Bitcoin can claw back lost time — and market dominance.