Bitcoin Withstands Volatility and Sinks Altcoins!

Week 34 of 2024 was marked by significant movements in the crypto market, especially for Bitcoin. Several key trends emerged, attracting the attention of investors and highlighting the importance of staying informed in this dynamic environment.

Bitcoin: A Strengthened Domination

Bitcoin (BTC) continues to dominate the crypto market, despite a period of increased volatility. According to Bitvavo, the price of BTC remained around €53,000, about 20% below the record reached in March. This relative stability of Bitcoin contrasts with the difficulties encountered by altcoins, which have suffered more pronounced declines.

Altcoins, or alternative cryptocurrencies, were particularly affected by the market’s weakness. Bitvavo points out that Bitcoin’s dominance reached its highest level since spring 2021, exacerbating losses for altcoins. This trend could indicate an increasing preference among investors for Bitcoin as a safe haven, especially in times of economic uncertainty.

Technical Analysis and Outlook

Bitvavo’s technical analysis reveals that Bitcoin is currently in a critical zone, between €56,000 and €58,000, where the 50-day and 200-day moving averages are located. These levels are crucial for determining short and medium-term trends. A break above these levels could signal a bullish recovery, while staying below could indicate a continuation of the correction.

Bitvavo anticipates increased volatility in the coming weeks due to macroeconomic factors such as economic data from the United States and Japan, as well as speeches by central bankers at the annual conference in Jackson Hole. Additionally, the reduced market liquidity during the summer period could amplify these movements.

Bitvavo’s analysis for week 34 of 2024 highlights Bitcoin’s resilience in the face of a struggling crypto market. The growing dominance of Bitcoin, which recently fell to 55%, and the challenges faced by altcoins underscore the importance of staying informed and vigilant. Bitvavo continues to provide valuable analyses to help investors navigate this complex and constantly evolving market.