Cryptocurrency Market Review
Tuesday, June 18, 2024
Bitcoin traded within the range of $64.5K to $67.3K throughout the day.
Market capitalization: $2.29 trillion
Dominance index: 56.22%
Stock markets rose again yesterday, with the S&P 500 nearing 5500. This growth is primarily driven by the technology sector, while other sectors lag behind.
Important: Recently, when Bitcoin increases in value, altcoins rise more slowly than the main cryptocurrency. Conversely, when Bitcoin falls, altcoins drop much more significantly.
As a result, following last night's decline, Bitcoin's dominance index is close to its yearly highs (now above 56.22%), while altcoins are once again searching for a bottom (Ether dropped below $3.4K, SOL below $130, AVAX below $25). These are strong, top-tier altcoins.
Additionally, the recently listed ZK is currently down by 28%. FTM and ENA have each lost nearly 20%.
Why is this happening?
There is a shortage of money and new participants in the market. The market crowd behaves irrationally, buying not when prices are low but when it's already too late.
In a resource-limited environment, money first flows into top assets. Once the top asset grows, the funds spread to everything else. This is known as the market cycle.
Bitcoin has once again approached support at $65.0K - $64.6K. Although there is a rebound, each successive bounce is weaker, and the dips below $65.0K are deeper. Therefore, I would not rule out the possibility that the support at $64.8K - $64.5K might fail, causing Bitcoin's price to briefly dip lower.
This is likely if the dollar index rises, there is a correction in the stock market, or there is FUD or actual negative news.
However, the primary scenario is a range with the lower boundary at $64.5K - $64.8K and the upper boundary at $67.5K - $68.0K. Stabilizing below $64.8K for a while is an alternative scenario.
What to do in the case of the alternative scenario? Buy, of course. When the prospects are clear and the price suddenly falls, the actions are obvious.
