3 reasons Bitcoin is on shaky ground after failing to regain $ 60K

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Bitcoin (BTC) is testing lower levels again after failing to conquer $ 60,000 resistance – and indicators suggest the slowdown is not over.

BTC / USD rebounded to $ 55,000 overnight Monday, hours after hitting local highs of nearly $ 59,000 at the start of bullish trading.

With sellers still in place closer to all-time highs of $ 64,500, the largest cryptocurrency has a lot of work to do to break out of its current wide trading range.

BTC returns to trading

One metric that could soon cause problems for bulls is the overall BTC balance on cryptocurrency exchanges.

While seeing a strong downward trend throughout the past year, local spikes in supply – when traders return coins to their foreign exchange accounts for a potential quick sell – tend to reflect a more mentality. sales-oriented.

This is not the case for all exchanges this week. According to data from monitoring resource Bybt, 16,222 BTC entered global leader Binance in the past seven days. In contrast, the institutional platform Coinbase Pro actually lost 11,947 BTC, in line with the general trend.

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Yet Binance is not alone – Okex, Huobi, Bitfinex, and Kraken have all seen their BTC balances increase in the past 24 hours.

Greed is on the rise

As TBEN reported, a familiar face from past sentiment shifts returns this week – greed.

Tracked by the Crypto Fear & Greed Index, which measures the sentiment of traders using a basket of weighted factors, appetite for a liquidation increases, even if the price action is no longer positive.

On Tuesday, the index gave an overall crypto market score of 68/100, matching “greed” being the general driver of mood.

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Crypto Fear & Greed Index. Source: Alternative.me

It’s still below its mid-90s high seen earlier in the year – a level that almost guarantees a sell-off – but volatility ensures the index won’t stay in the same zone for long. “Greed” can turn into “extreme greed” or “extreme fear” within days or even faster.

On April 27, for example, the index only measured 27/100.

Dogecoin adds Bitcoin pressure to altcoins

Last but not least is perhaps the most obvious factor at play when it comes to Bitcoin’s problems this week: altcoins.

At first, it was Ether (ETH), which led the pack and outperformed Bitcoin with its trip above $ 3,000 to all-time highs on Monday.

Now, however, Dogecoin (DOGE) is leaving the rest in its dust, back above $ 0.47 after being integrated on the popular eToro trading platform.

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DOGE / USD has risen 72% in one week compared to Bitcoin’s 3% at the time of writing.

BTC / USD vs DOGE / USD linear chart. Source: Tradingview

As altcoin outbreaks follow one another, the mood for analysts is growing for a longer-term trend that takes center stage before Bitcoin can recoup the lost time – and the dominance of the market.

As TBEN reported, one indicator even suggests that the combined altcoin market cap could explode more than 27,000% by the start of 2022.

“The next 2-3 months are going to be epic for alt coins”, famous Twitter trader known as Johnny abstract to subscribers, too forecast a short-term price target of $ 5,000 for Ethereum.

Bitcoin’s market share is currently 46.3%, declining further and further thanks to altcoin entries.