Bitcoin (BTC) has been trading below its all-time high (ATH) price above the $64,500 level set close to three weeks ago. The premier digital currency has surmounted a lot of strain as some key fundamental pressures such as the Xinjiang blackout have stirred a global sell-off. Bitcoin is currently trading at $58,633.39, up 4.16% in the past 24 hours atop an 11.78% gain over the past week according to CoinMarketCap.
The overall price outlook for the digital currency is ambitious, but not with the prospects of the coin increasing its dominance effect in the global cryptocurrency industry. Bitcoin dominance has been on a decline for weeks, as altcoins, lead by Ethereum (ETH) continues to see increased cash inflow from both retail and institutional investors. Following a high of about 65% a few months ago, Bitcoin dominance is now currently at 47.7%.
The reducing dominance has a subtle impact on the reduction of the ability of the digital currency to influence the prices of other coins. The declined dominance made Ethereum break free from the correlated price trend of the top coin, and as such has charted a very bullish path for itself crossing the $3,000 ATH price level.
Now, Bitcoin bulls are somewhat wary of the growth strides of Ethereum and are seeking to push the coin’s price back above $60,000. While this potential price movement has been tagged as imminent noting the volatile nature of the coin, market strategists have tried to determine the feasibility of this upsurge happening any time soon.
Metrics Showing the Potentials for Bitcoin Price to Hit New Level
The Bitcoin market is very robust, at over $1 trillion market capitalization. The potentials for new investors both on the retail and institutional investment angle is high, as more people believe in the possibility for the coin to grow in price as it has done for the past decade.
One of the core metrics, as highlighted to be behind the bullish sentiment that Bitcoin may see cash inflows in the coming days, is the stablecoin balances on exchanges. As highlighted by Cointelegraph, the $60,000 resistance level may be pulled down seeing the buy and sell demand from the order book of major exchange Binance tilting on the former side. The stablecoin inflows into exchanges is a boost that implies readiness to buy the coin on the part of investors.
Additionally, according to the Fear & Greed Index, a metric that takes several factors into consideration to depict the reactions of investors about the major cryptocurrencies, Bitcoin is currently ticking Greed. This implies that people are bullish and believe BTC will surge and return more gains in the near future. This has the tendency to spike increased buyups, which can stir the price of Bitcoin to course through a new level in the near future.