Bitcoin Dominance Fall and Resistance at $ 55K Stokes Peak Season Hopes

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The general cryptocurrency market saw a second day of gains on April 27 after the weekend sell-off proved to be a good buying opportunity for retail and institutional investors.

Lower gas rates following the Ethereum network upgrade in Berlin coupled with an increase in institutional purchases and decentralized financial activity pushed the price of Ether to a new all-time high of $ 2,680.

Data from Cointelegraph Markets and TradingView shows that Bitcoin (BTC) rose above $ 54,000 in the early trading hours on Tuesday and the bulls are now aiming to break the $ 55,000 resistance level for a possible rally to $ 58,000.

BTC / USDT 4-hour chart. Source: TradingView

With Ether and altcoins showing signs of strength, while BTC remains in range, there is growing chatter on crypto Twitter as traders speculate whether an altcoin season is about to begin.

This recovery appears similar to previous market funds.

As highlighted in a recent report by Jarvis Labs co-founder and analyst Ben Lilly, the strong rally of 11.5% on April 26 is similar to previous rallies in the price of BTC after a bottom.

Strength of the Bitcoin price recovery. Source: Jarvis Labs

The purple lines in the chart above represent the “lows in annualized Bitcoin futures in a moving month,” which Lilly points to to highlight a possible sign that there could be a price breakdown in the future.

Lilly said:

“Each time before a price reversal, the futures premium a month earlier was trading roughly 6% to 7% higher than spot prices.”

Some altcoins hit new all-time highs

Daily performance of the cryptocurrency market. Source: Coin360

Several altcoins saw their prices hit new all-time highs alongside Ether on Tuesday.

Polygon (MATIC) continued its strong rally, moving as high as $ 0.75 before taking what appears to be a brief respite. Uniswap (UNI) also saw its symbolic price hit an all-time high at $ 40.50 after a 17% rally from the April 26 lows.

The overall cryptocurrency market capitalization is now $ 2.08 trillion and Bitcoin’s dominance rate is 49.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.