Bitcoin price continued to trade above $55,000 level but altcoins didn’t increase, why?
Bitcoin price once slipped from the $ 55,000 mark, all the way to the $51,000 region amid a series of altcoins covered in red. However, at press time, the coin quickly rebounded, now maintaining a steady 2% gain over the past 24 hours, BTC is changing hands at $55,529, up 16% in the past seven days.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price could pick up momentum above $56,100, and that could attract buying into altcoin?
As you can see from the chart above, the Bitcoin price once dropped to $51,000, then quickly rose back above $55,000 as it is now. In the last 24 hours, the price traded the highest at $56,491 and the lowest trading recorded at $51,133.
Data from CoinMarketCap shows that the amount of Bitcoin traded in the past 24 hours is over $39.9 billion, and the market capitalization recorded $1,044 billion.
Bitcoin is a cryptocurrency with large fluctuations in price. Observing market movements, it can be seen that, despite a slight decrease in the past 24 hours, the leading virtual currency still increased by approximately 16% in the last seven days. Over the past week, Bitcoin’s strong rally has been driven by falling stock markets, a potential energy crunch, and fears of a real estate crash in China.
In addition, Bitcoin also surged thanks to the positive view of US regulators, as US Federal Reserve Chairman Jerome Powell and US Securities Commission (SEC) Chairman Gary Gensler said there was no intention to control cryptocurrencies.
Commenting on the future price of Bitcoin, many professional traders think that Bitcoin has a good chance to break the all-time high of $64,900 before the Fed meeting in November. Also, if nothing else, If the unexpected happens at the meeting, everything will be as expected, with a high probability that Bitcoin will hit ATH by the end of the year.
The sharp run-up in Bitcoin has pushed the Fear and Greed indicator into the Greed zone. Although this indicator suggests that markets may have run up quickly in a short time, it does not necessarily signal a confirmed short-term top.
At press time, the Fear and Greed index of Bitcoin remains above 65, showing that traders are overconfident. At the time of writing, the index is at 71, leading to “Greed” status.
Crypto Fear & Greed Index as of October 11 | Source: Alternative.me
Returning to market movements, the decline of Bitcoin caused many cryptocurrencies to be in the red. The top 10 cryptocurrencies in the market have up to eight coins down, led by Dogecoin (DOGE), with a slight decrease of 4% in the past 24 hours.
Referring to the story of why BTC rose but altcoins did not, you need to understand that the market is divided into 4 phases. First, the Bitcoin phase occurs when the inflow of money into it spikes.
Phase 2 is the phase of Ethereum, money also poured into ETH but not by BTC, and it started chasing BTC. At this point, ETH grows percentage faster, and everyone will talk about flipping.
Phase 3 is when Ethereum leads the way, causing significant altcoins to skyrocket as well. During this period, projects with solid communities and platforms also increased rapidly. And finally, it’s Altcoin season.
At the moment, we are probably waiting for Ethereum and major altcoins to catch up with BTC. And be patient as altcoin season is not far away.
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