As we approach the end of June and the beginning of Q3, Bitcoin remains in a rather vulnerable spot. Bitcoin is currently at risk of closing below its 50-month moving average for the first time ever, unless price can rally to around $21,350 by the monthly close.
On a weekly timeframe things aren’t looking a whole lot better for Bitcoin, as it is likely to close with 3 or more consecutive weekly candles below the 200-week moving average for only the second time in the coin’s history.
Our RealMotion Indicator has reliably called several previous macro bottoms in the past and we’re hoping this time will result in a swift reversal as well, but barring a sharp move to the upside it looks unlikely that we’re anywhere near bottoming just yet.
Volatility in the cryptocurrency market has only really allowed for scalpers and swing traders to take full advantage of the overall ambiguity in current crypto price action.
While Bitcoin has been trading essentially sideways in the $19,000 to $21,000 range level for the past 2 weeks, Ethereum has not looked any better as its price has barely managed to stay above the psychological $1,000 level.
On the other hand, there are a few altcoins that have been been getting more attention lately that also happen to be outpacing both Bitcoin and Ethereum in one very interesting metric…
Last week we pointed out an interesting trend in which major stablecoins have been gaining in their dominance of the overall cryptocurrency market cap, but it isn’t just the stables that are improving against Bitcoin and Ethereum.
Over the past month the two largest cryptocurrencies that exist have seen their respective dominance of the overal cryptocurrency market cap take major losses, all while other large cap altcoins have been gaining dominance quite considerably.
Cardano (ADA), Solana (SOL), Polygon (MATIC), and Chainlink (LINK) are 4 major blockchain projects that have always lived in the shadow of Ethereum when it comes to relative size in the crypto space.
Cardano and Solana are both major Layer 1 blockchains that tout more efficient and cheaper to use networks compared to Ethereum, and have both been making waves even in the extended crypto bear market.
Solana just announced that they are building a web3 smart phone in an attempt to bring blockchain fully mainstream, while Cardano has finally started delivering on their long promised smart contract functionality and major network upgrades (Vasil Hard Fork).
Polygon/Matic is a relatively well-known layer 2 blockchain, and is responsible for offloading a large portion of potential network congestion from the broader Ethereum layer 1 blockchain.
Chainlink is a long-term stalwart for the cryptocurrency market, and has been gaining lots of long overdue attention recently as the nascent crypto market has realized the importance that Chainlink serves to the entire blockchain industry as the go-to data oracle. Former Google CEO Eric Shmidt happens to be just one of countless impressive names directly affiliated with the Chainlink team, which goes to show how significant of a project/company Chianlink really is.
Nearly every major blockchain or cryptocurrency uses Chainlink’s oracle in some way or another, including Google being in a direct partnership with Chainlink since 2019.
Although all 4 of the altcoins we just mentioned are exciting and worth keeping an eye on, the reality of the situation is that all 3 are still having their prices suppressed below their respective 50-day moving averages.
The most optimistic conclusion from the positive trend in the dominance of these altcoins is that it could be an indication of increased risk appetite re-entering the market, possibly indicating a bottom already being in?
However, these projects have been gaining in dominance in a continually flailing crypto market, and if these major altcoins don’t start making definitive reversals soon then it will look just embolden the likelihood that cryptocurrencies haven’t bottomed yet.
Check out our new CryptoPulse Twitter account @MGCryptoPulse for daily tweets and updates about the crypto space!