Finst

Bitcoin price sinks below $20,000 as the hunt for a bottom continues

After last week's false breakout of Bitcoin (BTC), the crypto market at the start of the week slid back under the $20,000 mark.

By Mike Hesp
• 5 min read
Bitcoin price sinks below $20,000 as the hunt for a bottom continues

After last week's false breakout of Bitcoin (BTC), the crypto market at the start of the week slid back under the $20,000 mark.

Bitcoin (BTC) remains trading this week in the range of USD 19,000 to USD 21,900. Bitcoin’s dominance has meanwhile been easing to 43.2 percent. Bitcoin (BTC) failed to push last Friday’s breakout above USD 21,900 and slipped back into its trading range from the past few weeks between USD 19,000 and USD 21,900. The false breakout caused BTC to continue to correct over the weekend.

On Tuesday, July 12, BTC price corrected to USD 19,524. Bitcoin is again near the psychologically important $20,000 threshold. BTC has struggled to stay above the $20,000 mark. However, Bitcoin’s dominance was able to form a bottom around 43.20 percent in the last few trading days. The current market share stands at 43.91 percent.

Although some of the top 100 altcoins, like Quant (QNT), managed a notable price rally over the last seven trading days, many cryptocurrencies remain on shaky footing. To confirm a bottom, Bitcoin must break out of its sideways phase to the upside to give further bullish momentum to the market as a whole.

The fact that all of the top 10 altcoins show negative price trends this week in a 7-day compare underscores the uncertain state of the crypto market once again. Price action for Bitcoin and the rest will likely be significantly influenced tomorrow, Wednesday, by key US inflation data.

Price trends of the top 10 altcoins

  • All top 10 altcoins show price declines in a weekly comparison.
  • Dogecoin (DOGE) leads with an 11% drop. Polkadot (DOT), down 9%, also shows a downward trend, just like last week.
  • Cardano (ADA) and Solana (SOL) are weak too, down about seven percent, as is Ethereum (ETH).
  • On the other hand, Shiba Inu (SHIB) and Binance Coin (BNB) have managed to edge away from the pack slightly and, like Bitcoin, have only declined by just over one percentage point.

Top 10 stability

  • While Bitcoin continues to trade in its sideways range with a current price around USD 20,000, today’s low is again a higher low.
  • The fact that the top 10 altcoins haven’t carved out new year-to-date lows this week can still be viewed positively in the near term.
  • If Bitcoin’s market dominance climbs above the $20,000 level in the coming sessions, it will likely keep pressure on many altcoin price moves.
  • Tether (USDT) dominance is also rising again, signaling investors are staying on the sidelines until a clear market direction emerges.
  • The top 10 altcoins ranking shows a shift this week, with Shiba Inu moving ahead of Tron (TRX) to the 9th spot.

Week’s winners and losers

  • The crypto market trend is once again softer on a weekly basis.
  • Just a little more than 10% of the top 100 altcoins show a price gain.
  • As in the previous week, the majority of the 100 largest cryptocurrencies posted price declines.
  • The total market cap of all cryptocurrencies is almost unchanged week over week at $865 billion.
  • The weekly movers list is led by Quant (QNT) with a 35% price rise. Serum (SRM) is turning the tide against the downward trend, up 30%. Polygon (MATIC) up 18% and Internet Computer (ICP) up 17% also show an upward trend.

Majority of top 100 altcoins pull back again this week

  • At the top of the weekly losers are two of last week’s strongest altcoins, Launchpad Tenset (10SET) and Layer1 ecosystem Waves (WAVES). Both altcoins lost 13% in value. Investors look to have taken profits there. ApeCoin (APE), Synthetix (SNX) and Axie Infinity (AXS) lose 11% in value.
  • The overwhelming majority of underperformers rebound less than 10% week over week, which supports a potential bottom for many cryptocurrencies.
  • Corrections often take weeks, sometimes months.
  • Investors looking to bet on altcoins should monitor not only Bitcoin dominance but also the dominance of the largest stablecoin, Tether. As long as Bitcoin and Tether’s market power doesn’t flip into a correction, an altcoin rally among the top 100 looks unlikely.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.