Bitcoin managed to overcome the entire range of fluctuations during August and part of September in a week. The market ended its accumulation phase by strong bullish moves due to which the coin is quoted at $55,000. BTC has reached the final level and is moving to new all-time highs. However, the rapid growth of the first cryptocurrency may have a negative impact on the altcoin market's prospects as they continue to be dependent on bitcoin.
Over the past 24 hours, bitcoin rose by 7% and at 12:00 am was trading around $55,000, where the coin met resistance. Daily trading volumes jumped to $48 billion, further climbing to $55,000 and it is not the limit. The asset started to surge and showed the gain by 31% for a week, which provoked debates over its high volatility. However, such sharp growth is the result of systematic and long accumulation. Besides, the main problem for the market is different. On October 7, BTC's dominance rate was 43%, and it negatively affects the altcoin market. A surge in market presence percentage is caused by the downtrend area exit. This fact gives advantage to the cryptocurrency, which began to put significant pressure on altcoin and reduce its growth. This is clearly shown on the chart demonstrating BTC's dominance.
After its rally to $55,000, this rate fell slightly. However, it is evident altcoin lost its ground against bitcoin's surge.The first cryptocurrency's dominance is growing. BTC will exert an additional pressure on altcoins, resulting in their decline. Consequently, bitcoin will be the main asset on the market again. Notably, some currencies will gain independence from the main cryptocurrency mostly due to upcoming updates. For example, at the end of October ETH is updating by transition to the 2.0 protocol Altair. The hype concerning the update will boost the Altair quotes. However, considering the charts, the price movements of BTC and ETH are very similar. Consequently, bitcoin's significant growth will be accompanied by the altcoin market's decline.
The first cryptocurrency's dominance has fallen slightly due to climbing an important resistance level near $55,000. The coin needs time for consolidation, creating a support zone and a further upward movement. This aspect gives altcoins new chances for gain. However, their total percentage of growth will decrease during periods of BTC rise. On the daily chart, bitcoin's technical indicators are signaling further growth and the end of the consolidation period. The MACD indicator has passed the red zone and continues its upward movement, while the stochastic is moving along the overbought zone, above 80. At the same time the RSI indicator is moving along 70 and keeps sideways movement. Most likely, in the second half of the day, BTC will start climbing the $55,000 boundary to continue surging to $58,000, where the last key resistance passes.
On the more detailed timeframe, it is possible to see the prerequisites for weakening due to pressure on the price near the complex sell line. The stochastic oscillator and the RSI indicator are beginning to decline, although they are in an overbought zone. At the same time the MACD might make a reversal downwards and start a downward movement by forming a bearish crossover. However, this does not fundamentally change the situation, as the daily chart continues to point to the resumption of growth. Besides, ahead of the possible approval of the ETF fund on bitcoin futures, it is highly predictable that BTC will rise and dominate in the market in the near term.
