Bitcoin saw a wave of selling last week, and looked to be headed toward the $60k support zone- but could it instead be a buying opportunity?
A large spike in CDD implies long-dormant Bitcoin was moved, with the most recent spike occurring on the 24th of April.The market could take a few weeks to consolidate, especially considering the massive gains in the months leading to the halving. This might present a buying opportunity for altcoins that showed strength.Coin days destroyed is a metric that measures the age of the coins moved during a transaction.
Hence, a large spike in CDD implies that long-dormant Bitcoin was moved. Long-term holders might choose to book profits during a rally , or after a particularly deep pullback .The Bitcoin Dominance chart measures the market capitalization of BTC as a percentage of the total crypto market capitalization. It stood at 54.68% at press time and has fallen beneath a former support level.
This zone, highlighted in red, is expected to serve as resistance. Therefore, if the BTC’s dominance resumed its downtrend, it could give altcoins a chance to make gains.In the same period, Bitcoin has lost 12.2%. A sign of strength in an altcoin is when it holds up reasonably well against BTC losses. LINK did not exhibit strength against Bitcoin in the past month.The liquidation heatmap showed that $16, $18 and $19.
Therefore, even though BTC Dominance and the TD sequential gave swing traders a reason to go long, the potential for a drop to these support levels must be kept in mind before entering trade positions.Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis.
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