Bitcoin (BTC) price continues to evolve in a trading range, while Ether (ETH) is outperforming other assets. With the dominance of Bitcoin having fallen below the 50% threshold and continuing to decline, the movement of capital towards altcoins continues.
Ether (ETH) is eating into Bitcoin market dominance
Bitcoin has set historical records in 2021 but has struggled in the past few weeks to surpass the psychological barrier of $60,000. The current pause phase has lasted for more than a month and underlines the current trend.
It has been accepted that the current range will continue in May. In parallel with this latest price trend, the pull of BTC within the crypto market called dominance has fallen vertically recently, going below 50%.
This is due to the increased movement of capital towards altcoins. The development is great for the market as institutional traders widen their spectrum of crypto investments. So far, Ethereum (ETH) is the biggest winner, with the leading altcoin hitting new records.
The graph below illustrates the rebalancing taking place between BTC dominance and ETH dominance from January 2018. The momentum from ETH is solid, and there are expectations that the altcoin will continue to outperform in May.
What next for Bitcoin
Bitcooin technical analysis has revealed little about its price movement in recent days. The recent technical rebound has rebalanced the bullish indicator that followed Coinbase listing on Nasdaq in April.
This trend confirms that the market is moving in a horizontal technical trading range between $40,000 support and $60,000 resistance points.
This delay has a good probability of continuing this month of May, a period which generally puts “risky” assets under pressure. The decline in BTC dominance should continue towards 40% before a rebound that could occur when the trading range is resolved upward by the end of spring.