What the Experts are Saying as Bitcoin Market Cap hits Lowest Value in 3 YEARS

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The price of Bitcoin (BTC) fell again over the weekend, hitting monthly lows below $46,000.

The leading cryptocurrency is still unable to regain its growth path, yet the rest of the Altcoins have continued unabated on their way, although to a lesser extent. For that reason, BTC recorded all-time lows in its market dominance.

During the exponential growth of the crypto market since the middle of last year, BTC’s hegemony over the rest of the assets in terms of market capitalization hovered between 60 percent and 65 percent. In the last hours, however, it came to occupy just 41 percent.

The dominance of the flagship cryptocurrency fell to its lowest level since June 2018; that is, 35 months ago. BTC’s capitalization is currently less than $850 billion, after traversing many weeks above the trillion.

The cryptocurrency has not managed to recover after its last correction, a reaction to Elon Musk’s announcement through his Twitter account that Tesla would no longer accept it as a payment method due – according to his perception – to the high levels of contamination from crypto mining.

While many inexperienced investors went into despair, the more experienced ones took the opportunity to make new investments and take advantage of the fall. Furthermore, the situation served as a turning point for the future of mining activity.

Although the levels of pollution are decreasing, due to the advance of renewable energies in the sector, the referents of the ecosystem suggest that what happened with Musk may even accelerate the advancement of this type of projects. Some well-known figures in the ecosystem even suggest that this was the goal of the SpaceX CEO from the beginning.

What are the Experts Saying?

At lightning speed, like most things in Bitcoin and the crypto space, the general sentiment in the market seems to have changed. The bears have taken over.

The price of BTC has been bleeding but this time it suggests a bigger downside. Many “bought the dip” when BTC was below $50,000 expecting a bounce over the weekend towards the familiar $58,000 area. The bounce has yet to come, and as some experts have pointed out, BTC could see more blood before experiencing a recovery.

As at time of  writing, BTC was sitting at $42,692 with a 9.4 percent loss on the daily chart and a 30% correction on the monthly chart. Lower time frames are moving sideways with a 10% loss on the daily chart, as the price of BTC broke below 3 critical support levels at $47,000, $45,000 and $43,000.

Just Another Correction?

As bitcoin expert, Preston Pysh, claimed via Twitter, Bitcoin has seen similar corrections in the past. The expert has called the recent price action “business as usual” and a consequence of BTC’s compound annual growth rate (CAGR) of 200%.

As shown below, during 2016 and 2017’s bull-run, the price of BTC experienced at least 6 corrections from its yearly low towards $20,000 which at that time was a new all-time high. Corrections ranged from 38% to 29%.

Bears Put Relentless Selling Pressure on Bitcoin

After losing 3 critical levels of stronghold, Bitcoin needs to sustain the area above $44,000 for a potential bounce to finally occur. However, as a expert traders have revealed, the market faces relentless selling pressure. A whale on Bitfinex has been selling 100 BTC per minute with a short margin of 4,000 BTC, as exposed by Twitter user, lowstrife.

Glassnode’s Ki-Young JuData suggests selling pressure could come from addresses with 1,000 BTC. This metric is at its lowest point in 10 months, falling from 2,500 to 2,150, as of this writing.

Additional data indicates that coins inactive for the past 5 years could have re-entered the market. The metric reached a 6-month high with 21.9% of this offering in motion.

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Meticulous to a fault.

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