While the Bitcoin price fell to its lowest level in four months following the tension in the Middle East, market dominance increased by 51 percent for the first time.
Tuesday, October 10, 2023, was a big day for Bitcoin as its price fell below $28,000 amid rising tensions in the Middle East. This decline was noted prominently in on-chain data analysis and marked a four-month low for the cryptocurrency. Despite this decline, Bitcoin managed to maintain the $27,500 support level.
The Glassnode chart revealed a decline in new Bitcoin addresses, with only 367,874 created on October 8. This trend has shown that investors may turn to traditional safe haven assets due to global macro events.
It exceeded 51 percent for the first time!
However, despite bearish market sentiment and the potential for further price declines, domestic crypto investors have shown increased confidence in Bitcoin. In addition, market dominance (BTC.D) exceeded 51 percent for the first time since July 12. This increase was largely attributed to economic uncertainty resulting from the ongoing Middle East crisis.
Global Money In/Out (GIOM) charts pointed out that the critical $25,000 support level for BTC could strengthen if the downward trend continues. These charts also highlighted that 1.57 million addresses purchased 794,850 BTC at a minimum price of $26,600, indicating resistance to further price declines.
It was stated that it was important to overcome the resistance of $ 29 thousand for the BTC price to reach $ 30 thousand. GIOM charts showed that approximately 3.7 million existing addresses purchased 1.77 million BTC at an average price of $29,020. If market fear, uncertainty and doubt (FUD) increases further, this could trigger a bearish trend in Bitcoin price.
As a result, although Bitcoin’s price has been affected by rising tensions in the Middle East and global macro events, it still holds a strong position in the cryptocurrency market. The increase in market dominance and resistance to further price declines demonstrates investor confidence in the face of economic uncertainty.
