Against the backdrop of rising US treasury bond bond yields, a stronger US dollar and geopolitical uncertainty, the world's leading cryptocurrency, Bitcoin (BTC), continues to face challenges in returning to the US $28000 level.However, according to a report by Reflexity, a digital asset research firm, despite these obstacles, Bitcoin remains the best-performing asset class in 2023, with an impressive year to date (YTD) return of 63
Against the backdrop of rising US treasury bond bond yields, a stronger US dollar and geopolitical uncertainty, the world's leading cryptocurrency, Bitcoin (BTC), continues to face challenges in returning to the US $28000 level.
However, according to a report by Reflexity, a digital asset research firm, despite these obstacles, Bitcoin remains the best-performing asset class in 2023, with an impressive year to date (YTD) return of 63.3%.
According to a report by Bitcoin Investment Company NYDIG in New York, this outstanding performance surpassed the returns of US large cap growth stocks (28%), US large cap stocks (13%), bonds, commodities, and real estate investment trusts.
The ETH/BTC ratio reflects risk appetite and the strength of BTC
According to the company's latest analysis of the current situation of the cryptocurrency market, monitoring the dominant market value of Bitcoin is of significant importance, as it measures the percentage of Bitcoin's market value to the total cryptocurrency market value.
Market participants typically view this indicator as a broader risk measure for the cryptocurrency market. Just as traditional markets go through cycles, the characteristic of the early stages is that capital is concentrated in a few high-quality assets, and then gradually dispersed to high-risk assets. The crypto market also follows a similar pattern.
This cycle starts with capital concentration in Bitcoin, then spreads to Ethereum (ETH), and finally spreads to other counterfeit currencies. This cycle ended with an influx of capital into high-risk assets, as witnessed by the 2021 meme boom.
The chart in this report shows the increasing dominance of Bitcoin, indicating a healthy concentration of capital towards leading assets. The continued dominance of Bitcoin indicates the stability of the cryptocurrency market, with a significant amount of capital still flowing into Bitcoin.
In addition to monitoring Bitcoin's dominant position, another key indicator of risk-taking behavior in the cryptocurrency market is the ETH/BTC ratio, which compares Bitcoin's performance with Ethereum, the second largest cryptocurrency by market value.
This chart shows a downward trend in the ETH/BTC ratio since the merger in September 2022. According to the report, Bitcoin's dominant position and ETH/BTC ratio are crucial for observing any potential shift in Bitcoin's dominant market towards high-risk assets.
Bitcoin looks at the rise trend
After two months of consolidation in the range of $26000 to $27000, BTC finally saw an upward trend, breaking the pattern and climbing to the upward channel.
However, the upward trajectory of cryptocurrencies stopped due to strong resistance walls in the medium term, reaching $28600 on October 2nd and facing significant obstacles of $28700.
This resistance level is one of the final challenges in preventing BTC from hitting the $30000 mark again (last seen in August).
Despite setbacks, Bitcoin's current trading price is still above its key 50 day and 200 day moving averages (MA), indicating that Bitcoin may once again attempt to break through the levels it previously lost.
Market analysts and enthusiasts are closely monitoring the $27700 mark, as a successful breakthrough may herald the formation of a perfect "W" shape, with a target of $28100.
On this issue, the famous founders of encrypted YouTube and CryptoSea (known as "CryptoRover") emphasized the importance of the $27700 level as a potential catalyst for Bitcoin's next move.
According to the latest post by analysts on X (formerly Twitter), a successful breakthrough may reignite bullish sentiment and pave the way for advancing the $28100 target.
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