Bitcoin was rejected at the 200-day moving average for the second time in a week on Thursday, sending the benchmark cryptocurrency into a tailspin against the US dollar.
Initially on a rally, the world’s largest cryptocurrency shed all gains achieved on the spot markets by the end of Thursday trades, to swap for less than $27,500 at the time of writing.
Despite its inability to break above the 200-day trend line, bitcoin’s performance has nonetheless been stable in comparison to the broader crypto space, as well as the Nasdaq 100.
Month on month, bitcoin’s gains remain in the upper single digits compared to nearly 5% in losses for the US blue-chip index.
Bitcoin battles the 200-day trend line – Source: Binance
Ethereum (ETH), the second-largest cryptocurrency on the market, is vastly underperforming against bitcoin. Following another substantially bearish Thursday trading session and sluggish momentum this Friday, the ETH/USDT pair remains close to the $1,600 floor.
This is indicative of the broader market right now. With bond prices and equities falling in the securities markets, traders are looking to strong hedging opportunities, with bitcoin emerging as the winner against more volatile altcoins.
Bitcoin dominance, which measures its market capitalisation against the wider cryptocurrency markets, is a good indicator of this trend, having added nearly one percentage point in the past seven days.
A fair few of the blue chips in the wider altcoin space have flipped into the red when looking at week-on-week price performance, including Binance’s BNB token, Dogecoin (DOGE) and Tron (TRX).
On the upside, Solana (SOL) and Cardano (ADA) are in the green.
Global cryptocurrency market capitalisation currently stands at $1.08 trillion following a half-percent overnight fall.
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