Digital asset markets started the week in the red after Bitcoin (BTC) lost the $100,000 level and fell to $97,470, leading to a correction for most altcoins as well.
According to cryptocurrency data aggregator CoinGlass, there were over $567 million in liquidations in the last 24 hours, most of which leveraged long Bitcoin positions.
Closely followed analyst Rekt Capital told his 519,000 followers on social media platform said. Measure altcoin strength.
“Altcoin market cap closed weekly above $425 billion (black and white) for the first time since 2021.
Black has always been a problematic area.
This means that Altcoin Market Cap is likely to experience a much weaker rejection to trigger a much shallower retracement.”
In another potentially ominous sign for altcoins, analysts say Bitcoin Dominance (BTC.D), which measures BTC’s share of the overall cryptocurrency market capitalization, is rising relative to the Bitcoin Relative Strength Index (RSI). He pointed out that it appears to be oversold. Daily chart.
An oversold RSI usually indicates a bounce in the asset. In this case, for BTC.D, it means suffering for altcoins.
“Daily Bitcoin dominance RSI fell to its lowest point since August 2023.
BTCDOM RSI fell to ~22.
Over the past few years, BTCDOM has fallen to this low RSI level only three times.
“Every time BTCDOM reverses upward.”
As of this writing, BTC is trading at $97,546.
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