BTC/USD has failed to break above $11,500 again as dominance index drops to 60.4%

By Ray Crawford·4 August 2020·2 min read

Key Points

Bitcoin has held ground near $11,000 after a bid to push higher ran out of steam.
The cryptocurrency tested resistance around $11,500 but failed to sustain the advance.
A rally that had carried Bitcoi

Bitcoin has held ground near $11,000 after a bid to push higher ran out of steam. The cryptocurrency tested resistance around $11,500 but failed to sustain the advance. A rally that had carried Bitcoin past $10,000 peaked at $12,134 before sellers stepped in, pushing prices back down toward $11,000. The failed attempt to break higher has taken a toll on Bitcoin's dominance across the cryptocurrency market. Bitcoin's share dropped from 63.4% on July 28 to 60.4% today. The broader cryptocurrency market holds $345 billion in total capitalization, with Bitcoin representing $208.9 billion of that total. Should Bitcoin dominance slip below 60%, it would mark the first time since June 2019, when it bottomed at 55.8%. Dominance hit an all-time low of 32.81% back on January 15, 2018.

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Bitcoin has moved with less volatility than the dramatic swings of the previous week, a shift that has drawn trader attention to altcoins. Ethereum and XRP each posted gains exceeding 4% in the 24 hours ending at the time of writing. Chainlink has emerged as the strongest performer among the top 20 cryptocurrencies by market capitalization. LINK surged 15% to reach a new all-time high of $9.56. Bitcoin approached $11,500 in late Monday trading only to see that momentum fade, with the market closing near $11,250.

Research firm Glassnode sees conditions for an uptrend taking shape. The on-chain metrics that it monitors point to the beginning of a potential bull market. "BTC remained confidently above $10k throughout Week 31, and Bitcoin's on-chain fundamentals point to the beginning of a potential bull market – but external market forces could still impact this possibility" Glassnode wrote in a tweet. Strong network health coupled with sufficient market liquidity could enable Bitcoin to break above $12,000. A crash in traditional markets similar to Black Thursday would threaten that scenario. Growing economic uncertainty poses a headwind to the bull thesis.

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