Bitcoin price (BTC/USD) holds above $6,000, but lacks momentum

The Bitcoin dominance’s rise to 10-week high points to risk aversion

Bitcoin price (BTC/USD) holds above $6,000, but lacks momentum

The Bitcoin price (BTC/USD) has managed to return above the $6,100 mark following a rocky Wednesday session.

The original cryptocurrency struggled for most of yesterday’s trading, with its price hovering below the $6,100 level. Bitcoin’s performance improved in the afternoon, though the coin suffered a brief drop that brought its price to an intraday low of $6,052.85. The digital currency bounced off that low and then defended its gains in the final hours of the session. Bitcoin finished the day at $6,157.13, higher than its opening level of $6,084.40.

While it finished the Wednesday session in the green, Bitcoin never seemed capable of building strong positive momentum. The lack of such momentum has been demonstrated in today’s trading, with the coin experiencing a decline in the early hours of the session. For now, though, Bitcoin is holding above $6,100 mark, with its price currently hovering around $6,130, according to data from cryptocurrency tracker, Coinmarketcap.

This lack of momentum has also been observed in recent days across the wider cryptocurrency market. As noted by industry website Coindesk, the Bitcoin dominance – the leading coin’s share of the total cryptocurrency market capitalisation - rose to 42.74% yesterday, the highest level since April 14. The rising dominance means that there is greater demand for Bitcoin compared to its alternatives. This is usually seen as at the start of the bull run, Coindesk notes. However, the dominance also tends to rise during periods of risk aversion and this is the scenario we are likely seeing at the moment, Coindesk notes.

“If prices start to rally along with the BTC dominance rate, however, it could mean the crypto markets have bottomed out, finally finding a floor after months of decline,” the website concludes.

In today’s trading, the Bitcoin price stood at $6,133.28, as of 09:39 BST. The digital coin has gained 0.6% in the past 24 hours. The coin’s market cap currently stands at nearly $105 billion, which represents 42.5% of the total value of all digital coins.

For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.

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