Bitcoin market dominance drops to four-year low as BTC price drops $20,000

by · September 3, 2022

Bitcoin (BTC) traded below $20,000 on September 3 as commodities fell on news of a Russian G7 energy ban.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

All the way down after a gloomy macro week

Data from Cointelegraph Markets Pro and TradingView showed ongoing weak performance on BTC/USD, which was trading around $19,800.

The biggest cryptocurrency looked increasingly unable to use $20,000 for firm support as the weekend began, and the mood among market participants was exhausted.

After watching the 8-day exponential moving average (EMA), popular trader Cheds noted its strength as intraday resistance continued into September.

US stocks ended a troublesome week, with the S&P 500 falling 2.7% and the Nasdaq Composite Index 3.25% respectively.

Oil prices fell in Europe following the announcement of a Russian price cap that will potentially take shape at the end of the year, despite implications related to price increases should Russia itself retaliate.

Gas supplies to Europe also stopped following the price cap decision, reportedly due to technical difficulties, after resuming on 3 September.

“Gazprom seems to imply here that the only operating turbine at the Nord Stream 1 pipeline can only be repaired now at one of the (overseas) Siemens Energy specialized workshops, and until that happens, the pipeline will not restart (in other words, it’s down for good),” Javier Blas, energy and commodities columnist at Bloomberg, commented on a statement from the Russian energy giant Gazprom about downtime for gas transport.

Bitcoin is giving up market share

For Bitcoin bulls, meanwhile, the lack of market presence began to show.

Related: Bitcoin is in a bear market, but there are many good reasons to keep investing

Depending on the source, Bitcoin’s share of the total cryptocurrency market capitalization was at a four-year low as of September 3.

CoinMarketCap put Bitcoin dominance at just 39%, the weakest performance since June 2018.

TradingView calculations put the figure at 39.88%, which still marks an eight-month low.

Bitcoin market cap dominance 1-week candlestick chart. Source: TradingView

Earlier, Cointelegraph reported on the overall cryptocurrency market capitalization maintaining its 200-week moving average (MA), a key achievement in past bear markets.

However, the same could not be said for BTC/USD.

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