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Altcoins are outwitting Bitcoin bulls, and on-chain markers aren’t as green as they used to be — are further funding checks on the way?
Bitcoin (BTC) is testing lower levels after struggling to break through $60,000 resistance — and signs indicate that the slump is far from finished.
BTC/USD fell below $55,000 overnight on Monday, just hours after reaching a peak of nearly $59,000 in bullish early trading.
With buyers now positioned closer to all-time highs of $64,500, the largest cryptocurrency still has a long way to go before exiting its latest limited trading range.
BTC moves back to exchanges
One metric which may soon be causing problems for bulls is the overall BTC balance on cryptocurrency exchanges.
Though there has been a general steep downtrend over the last year, local supply surges — as traders take coins back to their exchange accounts for future fast sale — appear to represent a more selling-driven attitude entering.
This is not the case with any conversation this week. In the last seven days, 16,222 BTC has joined global leader Binance, according to data from tracking resource Bybt. Coinbase Pro, on the other hand, has currently lost 11,947 BTC, mirroring the overall pattern.
However, Binance is not alone; Okex, Huobi, Bitfinex, and Kraken have all seen an increase in their BTC balances in the last 24 hours.
The greed is rising
As 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.
On Tuesday, the Index gave the crypto market an average score of 68/100, indicating that “greed” was the overall attitude engine.
This is already lower than the mid-90s high seen earlier this year — a pace that almost promises a sell-off — but volatility means that the Index does not remain in the same region for long. “Greed” will quickly transform into “extreme greed” or “extreme fear” in a matter of days, if not hours.
On April 27, for instance, the Index measured just 27/100.
Dogecoin adds to altcoins’ Bitcoin pressure
Last but not least, maybe the most noticeable element at work in Bitcoin’s woes this week is altcoins.
Initially, it was Ether (ETH) that led the pack and outperformed Bitcoin, reaching all-time highs of $3,000 on Monday.
However, after being merged on famous trading platform eToro, Dogecoin (DOGE) is leaving the competition in its wake, returning to levels above $0.47.
DOGE/USD was up 72 percent in a week, compared to 3 percent for Bitcoin at the time of publishing.
Although altcoin spikes come in waves, observers are deeply concerned about a longer-term pattern taking centre stage before Bitcoin can reclaim lost time — and market supremacy.
According to one measure, the combined altcoin market cap could increase by more than 27,000 percent by the beginning of 2022.
Bitcoin’s market share is currently 46.3%, falling ever lower thanks to altcoin inflows.