The cryptocurrency market is continuing to demonstrate its notorious volatility, with the pioneer cryptocurrency, Bitcoin, showing signs of recovery after a series of substantial falls last week. In the early hours, Bitcoin momentarily surpassed the $98,000 mark. At present, Bitcoin is trading at $97,585, indicating a steady recovery. However, alongside this, its market share has decreased to 56.75%.
As of the time of writing, Bitcoin’s 24-hour trading volume has seen a significant increase of 16.12%, with the figure now standing at $37.92 billion. This surge in trading volume has coincided with a 1.39% increase in Bitcoin’s market cap, pushing it to an impressive $1.93 trillion. With these figures, Bitcoin has solidified its position as the seventh most valuable asset in the world. If the current surge continues, Bitcoin may soon overtake Alphabet (Google), which currently holds a market cap of $2.08 trillion.
Technical analysis of Bitcoin’s market trends offers a mixed but optimistic outlook. The Relative Strength Index (RSI 14) is currently standing at 67, indicating a ‘Neutral’ trend. On the other hand, the Simple Moving Average (SMA 10) stands at $96,126, suggesting a ‘Buy’ signal. These indicators imply that there is still room for further growth. However, Bitcoin has not yet reached levels that are considered excessively high, meaning there is a possibility of either continued upward movement or a potential cooling-off period.
In addition to this, traditional investors seem to be returning to Bitcoin ETFs. As of November 29, U.S. spot Bitcoin ETFs experienced an outflow of $320.01 million. However, this was counterbalanced by inflows of $137.49 million from BlackRock’s IBIT ETF.
Despite these positive indicators, Bitcoin’s market share, as per TradingView data, has slipped to 56.75%, marking an 8.15% decrease from its recent peak of 61.78% on November 21.
Meanwhile, altcoins, the alternative cryptocurrencies to Bitcoin, have been on a steady rise since November 5. The total market value of altcoins has shown a robust upward trend, growing about 70% and now valued at $1.46 trillion, after hitting a low of $856.1 billion earlier in the month. This increase indicates that altcoins are gaining substantial momentum as investors are beginning to diversify their portfolios. The spillover effect from Bitcoin’s surge seems to have significantly contributed to the growing market share of altcoins.
These market trends underline the dynamic and ever-evolving nature of the cryptocurrency market. Investors and market watchers will be closely monitoring these developments as they navigate this complex and volatile market.
