Bitcoin is moving sideways in the above $30K range with bullish indicators on lower time frames.

The bulls are anticipating a breakout of the former support, now turned resistance, around $40,000.

Last day, the number one cryptocurrency by market cap recorded a low of $33,000 and is currently trading at $35.2000.

While the outlook is bearish in the bitcoin market, altcoins have also seen corrections of up to 40%.

Ethereum (ETH), Polkadot (DOT) and Binance (BNB) were the worst performers in the top ten with 42.4%, 36% and 48.1% retracements, respectively.

Similarly, ADA, Dogecoin, and XRP saw similar corrections.

Ripple has seen a 21% correction on the daily chart and has the worst performance in this time frame.

Read:Bitcoin Arab announces the third episode of the “Ramadan Evenings” series to learn technical analysis

On the higher timeframes, the recently added ICP cryptocurrency is the worst performer after losing 50% in the seven-day chart.

The sharp drop in altcoin prices has seen the dominance of Bitcoin rebound from less than 40% to 46.1% at the time of writing this article.

This metric could continue and grow higher in the coming weeks if Bitcoin price action continues to move sideways and the $40,000 area recovers.

With Bitcoin dropping, which sectors are most affected?

published Research firm Messari released a report, written by analyst Roberto Talamas, after the bitcoin price plunged by 40%.

According to the report, the cryptocurrency sector (ETH, ADA, XRP, etc.) recorded losses less than the rest with a total of 16%, followed by the DeFi sector with a decrease of 19%, decentralized trading platforms by 22%, and the Web3 sector with a loss of 26%, respectively.

The analyst author of the above report did not provide any explanation for the selling operations taking place in the market.

Whereas, the CEO of Tesla could have an impact on the recent sale, and it is also possible that regulations in China and the United States of America will have a significant impact on the sale.

Read:Decreased activity of DeFi projects recorded on the Binance blockchain compared to Ethereum

Why has Bitcoin dominance soared as altcoins bleed?

Bitcoin’s dominance has risen due to the relative increase in its relationship with altcoins.

With the price of Bitcoin falling, investors may prefer to exit their altcoin positions until there is more certainty in the market.

Correlation can be a good indicator for identifying Bitcoin bottoms, as Teddy Vale, CIO at Pervalle Global pointed out in the chart below:

Read:More than 400 million dollars liquidated after the price of Bitcoin rose to the level of 47 thousand dollars

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