In Science and Space: After suffering significant losses over the weekend, Bitcoin and the crypto market have remained sideways over the previous week. Despite the short-term adverse price action, the sector appears to have a greater stomach for risk as market players devote more cash to altcoins.
This indicator has suffered a significant drop since July 2022 and was moving sideways during August until resuming negative momentum over the previous week, as shown below. When the altcoin sector is poised to or is enjoying positive momentum, the measure frequently moves to the negative.
Around the time of writing, Bitcoin (BTC) is trading at $21,500, up 2% in the last 24 hours and 11% in the last seven days. The Bitcoin Dominance (BTC.D) indicator, which measures the proportion of the crypto market’s total market cap that is made up of BTC, has been heading downwards as altcoins hit annual lows.
Sentiment data show an increase in Bitcoin transactions settling at a loss as traders shift to altcoins. As can be seen in the chart below, the BTC Ration of On-Chain Transactions, a metric used to compare the amount of transactions that benefit vs those that lose, has tracked Bitcoin’s dominance indication and may be on the cusp of further decline. Santiment mentioned:
Santiment asserts Ethereum has a strong link with the world’s two largest financial indexes, the S&P 500 and the Nasdaq 100. This further adds to the excitement around “The Merge,” which many regard as a watershed point in Ethereum’s history and the first step on a path of continuous progress.
As this huge event approaches, the likelihood of “buy the rumour, sell the news” price movement increases. In other words, Bitcoin’s price may continue to lag Ethereum’s until “The Merge,” when selling pressure may grow. This is common with highly anticipated crypto events. Analyst Justin Bennett depicted the “Head and Shoulders” pattern below, which might give a possible trajectory for the price of ETH in the immediate term.