Key takeout
- BTC trades around $111,000 and could soon stabilize Altcoins to meet.
- Bitcoin’s control level fell to 55 amid increasing demand for AltCoin.
BTC will stagnate at $111K as AltCoin demand increases
Bitcoin, the leading cryptocurrency by market capitalization, has traded around $111,000 over the past two days. This performance brings Ether nearing $4,500 after adding more than 1% to its value despite Altcoins rising.
However, bitcoin stagnation has seen a decline in control levels. Bitcoin’s advantage has declined from its peak of 62% to 55%, indicating that investors could shift funds from Bitcoin to altcoin.
Bitcoin domination measures the percentage of Bitcoin’s market capitalization. This metric helps investors determine whether Bitcoin is preferred for a given period or whether Altcoin is a priority investment.
In an email to Coinjournal, Risk Director Sergei Gorev, Youhodler said historically that BTC price dynamics have usually kept up to the dynamics of M2 growth. Golev added that,
Perhaps this difference is caused by the local summer vacation period, and with the beginning of the fall business season, BTC prices could be straightened again. In our opinion, the reinforcement of the position of the second layer coin is very long-term. First, this is due to market redistribution of profits for early investors in BTC, and second, in the future, the creation of cryptographic preparations may occur in the most liquid cryptographic projects. I think the next interesting market idea could be Sol and XRP.
BTC still targets $113K despite declining dominance levels
The BTC/USD 4-hour chart showed improvements compared to the bearish price action in August. The technical indicator begins a positive switch, with an RSI of 59 indicating that the seller is no longer under control.
If recovery continues, BTC can try to overcome its 4-hour resistance level and TLQ at $113,487. A breakout above this level makes BTC easy to collect $117,000 in resistance.
However, as the market is still volatile, BTC is facing a downward revision, potentially dropping to Monday’s low of $107,250.
