Bitcoin price took another swing but to no avail so far, but dominance over altcoin has increased further
Bitcoin price has had one more swing at $56,000 but to no avail so far. Although some altcoins like XRP and DOT have charted significant gains over the past 24 hours, BTC dominance has increased. At the time of writing, BTC is changing hands at $55,068.
BTC/USD 4-hour chart | Source: TradingView
BTC Dominance on the rise as Bitcoin price eyes $56,000
After yesterday’s slide below $54,000, Bitcoin has started to increase in value once again and has reached almost $56,000. The leading cryptocurrency exploded above $50,000 on October 5 and has not looked back since. On the contrary, it was primarily offensive, which led to a $56,000 mine a few days ago, the first time in about five months.
However, a break above that level became more difficult than expected as the bears stalled the move and pushed BTC south. As a result, BTC dropped several thousand dollars and went below $54,000.
The situation has changed again in the last 24 hours. Instead of falling deeper, BTC started to increase in value again and just hours ago hit $56,000. However, as it happened last time, it could not rise and withdrew several hundred dollars. However, it is still up more than 1.5% on the day and close to the $56,000 price point.
Bitcoin and major altcoins sometimes become effective tools that investors add to their portfolios to increase volatility and add more diversity. While Bitcoin has been actively tracking the stock market as a whole, it may still retain more value due to its decentralized nature as the Fed begins to shrink the market.
Back in February 2020, when traditional markets faced a massive 30-50% crash due to the introduction of the first covid restrictions, Bitcoin reacted with 30% growth, which indicates that cryptocurrency can remain an alternative way of preserving capital in periods of crisis on traditional financial markets.
As mentioned above, most alternative coins have stalled against their leader in the past several days. They are also rather calm against the dollar. Ethereum, for example, has failed to remain above $3,600, and a minor 24-hour drop has driven it back down below than line.
The cryptocurrency market capitalization has also increased slightly in a day and is currently at $2.309 trillion.