Altcoins will fall sharply this weekend with Bitcoin dominating at 47%
Over the past two weeks, the cryptocurrency market has seen a severe bear market. It is the same with the price of Bitcoin. The flagship currency which held its price above $30,000, has now dipped below that level.
While some crypto analysts believe its market dominance will gradually increase, others believe it will drop below $20,000.
Despite the fact that the crypto market is in turmoil, bitcoin currently controls 46.51% of the market. However, it is not the same for altcoins, as important altcoins have been eliminated.
Here is what many market analysts are predicting about Bitcoin’s future. This is because there seems to be no help on the inflation front and the Federal Reserve is determined to raise interest rates.
Bitcoin Dominance Rises as Alts Find Bottom
The Bitcoin Dominance Index has risen from 0.4% to 44.7%, last seen in October 2021. Still, this scenario is not in favor of altcoin price action. One of the on-chain crypto analysts, Matthew Hyland predicts that altcoins are in a death spiral.
He thinks bitcoin holders are in a safe position, but altcoin holders are not. Therefore, according to the analyst, the alts will soon find the bottom.
IPC, the reason for the low price of Bitcoin
On the other hand, the Client Value Index (CPI) report led to a breakdown of the $30,000 support, and the value of Bitcoin (BTC) fell to $28,852.
The high CPI affected both financial markets, the dollar index (DXY) and the S&P 500 (SPX). This was discussed by Il Capo from Crypto, who uploaded the following charts. He also says that “After the CPI results, DXY continues its pump and SPX remains loose.”
If the value of BTC continues to fall, crypto trader Altcoin Sherpa believes it is possible to buy and sell below $28,000.
CrediBULL Crypto, market analyst and pseudonymous Twitter user, provided some insight into what it would take to avoid a move back to support at $28,000. His assertion was supported by a chart displaying the “unlucky” retracement from $30,000. According to the analyst, this is where we need to stay focused.