By
Chimamanda U. Martha
April 25th, 2024
As Bitcoin is ranked among the top hot topics by Weibo in China, analysts think the popularity will catalyze its market price to $40, 0000. However, BTC dominance is down in the $300B crypto market.
Bitcoin popularity has spiked in the last few days especially in mainland China, where a popular social media platform, Weibo, ranked it among the top most searched topics in China. The popularity spike is attributed to social disruption caused by the coronavirus outbreak that has ravaged the social fabric to its core.
Bitcoin Fundamental Analysis
Amidst all the fears and concerns raised by health officials, Bitcoin seems to be thriving contrary to the declining state of the economy in China. At the time of news reporting, Bitcoin was trading at $10, 445 with the bulls on the higher time frame showing the tenacity to push the market price even much higher.
Checking on the BTC/USD which is a major crypto derivative that is traded by most traders worldwide, the correlation is showing Bitcoin is gaining the ground compared to the dollar. Despite both the dollar and Bitcoin being considered a safe haven, Bitcoin is dominating the market in a forest-fire pace.
The sharp interest in acquiring the crypto asset is also attributed by the oncoming Halving event that will see the blockchain reward to miners reduce from the current 12.5 to 6.25 coins shared amongst. Furthermore, the market clearly understands the supply of the commodity is diminishing with time and the demand constantly rising by the day.
This is giving analysts like Tome Lee from Fundstrat think Bitcoin will hit $40K already this year being driven by all the political and social issues around.
Bitcoin Technical Chart Analysis
Since January, when Bitcoin retested the support zone at $7,000 for the third time, it has not shown any sign of going back again. The chart derivative has been making higher highs and higher lows, which is the best indicator of a rising market.
Furthermore, Bitcoin has broken the previous hurdles with much ease and forming a new strong trend line that is shooting upwards. Although this is the third time Bitcoin has crossed the $10, 000 mark, it is different from the previous times in a lot of ways.
In the current bull rally, the market has been rising steadily fueled by trade volume and market cap as compared to the previous ones where speculation and emotions fueled a spike in the market. The previous bull rally were followed by deeper corrections compared to the current one which is moving slowly but shorter corrections.
Crypto Market Cap
It’s also worth mentioning, the crypto market has achieved a $300 billion market capitalization over the past few months alone. Just a couple of months was needed for the figure to move from $218.4 billion to $303.1 billion.
Since the start of the decade, 2020, the market cap has steadily increased by 65.92%, hence showing the intense mass behind the crypto space. And of course, the crypto community believes that it’s still just the beginning of the crypto way around the world.
Despite Bitcoin dominance in the market dropping from 68% to 62% to altcoins, the market bull rally will continue pushing it to the sealing in the near future.