A Divergence Towards BTC Dominance Has Developed; Filecoin Partners With Lockheed Martin

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On Monday, U.S. equities rose on the back of remarks that signal the reconsideration of China tariffs. However, despite the slight recovery on Monday, the broader crypto market has headed south into its eighth red week in a row. As of the time of writing, BTC is trading below the $30k psychological support level after shedding 2.5% of its market value within the last 24 hours. The largest cryptocurrency by market cap has returned to its old trading range with an immediate overhead resistance sitting near the $29.6k level. If BTC fails to garner enough momentum to rise above the $30k support level, it will likely retrace further to test the support levels within the $27.8k to $28.5k range.

From a more macro perspective, BTC has been trading at a lower level for eight consecutive weeks now. BTC has also seen a 55% drawdown from its all-time high price, as well as a 30% drop from its monthly high, which was near the $40k level. In terms of monthly returns, BTC has also been performing abysmally. In fact, said monthly returns are even worse than the ones accrued during the massive deleveraging event that took place in early December of 2021. However, and on a more positive note, the divergence towards BTC dominance can typically be used to gauge the end of a bearish cycle. As said divergence has been developing since BTC's peak in November of 2021, this is a sign that there may be better times ahead in the near-to-mid-term.

Talk of the Town

Filecoin Foundation has recently announced its partnership with the aerospace tech firm, Lockheed Martin, to design a decentralized storage system for the space industry. The partnership aims to design and build infrastructure that will facilitate information sharing, and reduce storage costs between Earth and space. The Interplanetary File System, a blockchain-based storage protocol that leverages content-addressing to identify files, will be deployed in a bid to transform how data is shared within the space economy.

In a similar vein, ETH is now trading below the $2,000 handle after dropping by 2% from 24 hours ago. Most major altcoins have also erased the gains they made on Monday, with AVAX leading the descent on a 4% loss over the past 24 hours.

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