The deterioration of present situation of the world is bringing a downfall to the entire economy. Along with other fiats, the market of Bitcoin, dominant of all crypto, has been highly hampered. According to the definition of Binance, Bitcoin dominance is the ratio between the market cap of Bitcoin to the rest of the cryptocurrency markets. The ratio was closer to 100% from 2009 to 2013. Back then, the vast majority of cryptocurrency consisted of Bitcoin. As we know technical researchers have been working in the field to find out way to improve situation and these technical researchers have recently confirmed that Bitcoin’s (BTC) road to recovery could be a long one. According to a report, Bitcoin’s price action was severely compromised by the recent price drop.
The breakdown of crypto is conveying panic to every user around the globe and dominating other asset classes. As per report published, lower highs and lower lows are in place for bitcoin, leaving in a compromised, potentially vulnerable longer-term profile. Bitcoin stayed above its 200-week average is believed to be a major long-term structure support level for the most assets. It is expected by researchers that Bitcoin will likely need months of consolidations to repair the technical damage from now in place.
Buying pressure and return of optimism
In this critical situation, hype has been seen in buying bitcoin. There is a major buying pressure for Bitcoin under $5,000 leaving hash rates drop. Miners have their respective interest in buying Bitcoin and these prices were potentially below running cost for many miners. It is highly expected keeping the bitcoin halving ahead that the price will reach $6,500 again before stabilizing between $3,000 and $6,000 until the next Bull Run.
As per report reached to us, the price of Bitcoin has already broken $6,500 to trade at $6,700, up nearly 20% over the last 24 years. As the asset has been recovered by 80% in just a week, the founder of Global Macro Investor said he is bullish on Bitcoin. It is seen among investors that optimism is getting increased after rebound came. Cryptocurrency being a popular payment option is creating high expectation among investors especially in critical situation.