State of the Market : Let’s See What Happened

By Astroboy13 | CryptoByte | 17 May 2024


If you’ve followed the market movement, you have surely seen a lot of green candles. But why is the whole market pushing upward ? That’s what we are going to find out in this article.

Prices And Liquidations

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So the entire crypto market was in the green, with a lot of alts skyrocketing. However, in reality, it masks the important thing we need to notice. The Bitcoin Dominance is increasing significantly :

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For those who are not familiar with Bitcoin dominance, it is: Marketcap of Bitcoin / Whole marketcap of the cryptocurrency market.

It shows the power of capital attraction of Bitcoin. In general, in a bull market, if the Bitcoin dominance decreases, there is an “Alt season,” which is a period where a majority of altcoins see their prices increase much more than Bitcoin.

So this shows that Bitcoin still holds the power to attract capital and that alts will have to wait a little longer before they shine.

Let’s see the liquidations :

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We’ve seen 148 million dollars of liquidations, which is not much.

Now let’s take a look at the key liquidation levels :

1*UFI_DELDOEwZS39-KAyJ6A.png

As you can see, there is a cluster of liquidations around 67k and 71k. Those are key levels that, if broken, will unleash a short squeeze.

Prices Are Soaring, But Why?

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It’s mainly because of the results of the Consumer Price Index (CPI) of the USA in April, which diminished by 0.1% compared to last month. This is a good step towards lower inflation.

Conclusion

This is great news for crypto investors. However, there is a lot of news that might shake the market in the coming weeks, such as the response to the ETF Spot Ethereum.

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Disclaimer : This is not a financial advice, you need to do your own research !

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Astroboy13
Astroboy13

I'm a crypto entousiast


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