Why The Crypto Market Looks Unhealthy With Bitcoin At $21K, Expert Says

Bitcoin and the crypto market continued to move sideways over the past week after recording important losses during the weekend. Despite the short-term bearish price action, there seems to be more appetite for risk in the sector as market participants allocate more capital to altcoins. Related Reading: Bitcoin Realized Losses Going Down, But Still At Significant Value At the time of writing, Bitcoin (BTC) trades at $21,500 with a 2% profit over the past 24 hours and an 11% profit over the past 7 days. The Bitcoin Dominance (BTC.D), an indicator used to measure the percentage of the crypto market’s total market cap comprised of BTC, has been trending downwards as altcoins take off yearly lows. As seen below, this metric has seen an important loss since July 2022 and was moving sideways across August only to resume bearish momentum over the past week. The metric often trends to the downside when the altcoin sector is about to or is experiencing bullish momentum. Data from research firm Sentiment record a spike in Bitcoin transactions settling at a loss as traders turn into altcoins. As seen below, the BTC Ration of On-Chain transactions, a metric used to measure the number of transactions in profit versus those in losses, has followed Bitcoin’s dominance indicator and could be on the verge of further downside pressure. Santiment noted: Bitcoin has slumped since briefly jumping back above $25k on Aug 14th. As traders have turned ...