Ethereum Wallets Surge as Bitcoin Dominance Weakens: Here’s Why

• Bitcoin faces resistance at progressively lower levels, suggesting weakening support and potential further declines.
• Ethereum wallets are growing as Bitcoin’s dominance wanes, showcasing altcoin’s performance.
• The $67,200 support level for Bitcoin is weakening, possibly transitioning into a new resistance point.

Bitcoin holders have recently experienced a significant decline in non-empty wallets, marking the most substantial three-day drop just before the March 14th all-time high. As highlighted by Santiment, a top analytic firm, traders are liquidating their Bitcoin holdings in anticipation to price drops. Meanwhile, the number of Ethereum wallets has increased.

As further noted by Jelle, a crypto analyst, Bitcoin’s dominance in the market continues to wane as its price consolidates just below all-time highs, hinting that altcoins may soon outperform once Bitcoin breaks out. Bitcoin’s recent price action has been characterized by rejections at progressively lower levels. This pattern has been evident as the cryptocurrency faces resistance at lower highs within its current re-accumulation range.

Last week, RektCapital highlighted in their newsletter that Bitcoin was in the high range of this re-accumulation zone. In April,  Bitcoin faced resistance around the $73,000 level. But more recently, it encountered resistance at approximately $71,500. This trend indicates a weakening support structure, as the blue $67,200 level has not provided the same support as before.

In early March, Bitcoin rebounded strongly from this level, but the rebound was much weaker in late May. Consequently, Bitcoin has closed below this blue level on a weekly basis, suggesting that it may transition from a support level to a resistance point in the near future.

This resistance pattern has significant implications for Bitcoin’s price trajectory. The analysis indicates the possibility for sellers to weigh down on the price. As a result, the blue $67,200 level, which once provided decent support, may now act as a point of rejection. This shift is not unprecedented, as similar transitions have occurred in the past.

The live Bitcoin price as of press time was $65,729.77, with a 24-hour trading volume of $36,148,921,736. Bitcoin is down 1.12% in the last 24 hours.