Today, Bitcoin has risen to $42,300 as a result of the Biden Administration’s executive order on digital assets.
While this is a far cry from November’s all-time high of $69,000, it nonetheless provides good comfort to investors who have experienced significant uncertainty over the last five months.
The executive order will establish a cryptocurrency framework that is intended to strike a balance between responsible innovation and risk management. However, what this means in practice is debatable at this time.
Nonetheless, markets regard the executive order as a positive move. At the same moment, Bitcoin’s dominance rises to 44 percent as a result of this incident.
Analysis of the $BTC price
Following a dreadful start to 2022, Bitcoin is mounting a comeback. Although on-chain indicators depict a bleak picture, at least in the short term, bulls have posted three substantial daily green candles since the end of January, the most recent of which was today.
Although the latest price pattern cannot be classified as bullish due to the lack of new highs, a clear bottoming pattern is developing. It’s anyone’s guess whether this translates to a higher leg in the next days and weeks, owing to the fact that macro uncertainty remains thick in the air.
Nonetheless, today’s advance propels Bitcoin solidly above the 50-day moving average. Bullish momentum is increasing, as evidenced by an increase in the Relative Strength Index (RSI), which is currently at 55%.
The 50-day moving average is the average price paid in the previous two and a half weeks. This is a key time frame because it is the first line of support in an uptrend and the first line of resistance in a downtrend.
Bitcoin’s supremacy is on the rise.
Bitcoin maintains its dominance, accounting for 44% of the overall crypto market worth. This is more than double the market dominance of the next largest token, Ethereum, which now has an 18% market share.
On multiple occasions in the past, the 44 percent level has served as both support and resistance. Bitcoin is currently on the verge of crossing this level. A close above this level today might spark off a run higher, bringing the alts to their demise.
Rising Bitcoin dominance indicates that investors are cycling out of alts and into Bitcoin, as evidenced by a sequence of higher highs since mid-January.
However, a speculative Bitcoin price is still cause for concern.