As bitcoin manages to break through the $40,000 level and push on to $42,000, the altcoins are put on hold as the king of the cryptocurrencies dominates the scene.
Bitcoin pauses below $42,000
When bitcoin hit $42,000 on Monday, a sharp rejection was perhaps warranted, given that the alpha cryptocurrency experienced a strong move upwards all the way from $37,500. There has been a rejection, but not a decisive one, at least so far.
Instead, bitcoin looks to be gathering itself once again. Is another stair step higher going to come over the next few days and weeks? $48,000 is seen by many as the most likely target for bitcoin, given that this is the area of the golden 0.618 fibonacci.
All paths lead to the 0.618 fibonacci
Source: Trading View
As can be seen in the chart, bitcoin is right now up against the 0.5 fibonacci, and also some tough resistance. If bitcoin can defeat this level, just like it has done to all the previous ones, $48,000 is the next logical target, and maybe the end of the road where some potential major retracement can take place.
Bitcoin dominance sucks value out of altcoins
Source: Trading View
Monday’s domination of the crypto market was the biggest spike in BTC dominance, over the period of the more than three weeks that bitcoin has been sucking value from the altcoins.
Dominance for bitcoin is at a resistance now, and breaking through this could open the way to an enormous 57.5% domination of the crypto market.
Altcoins took a hammering on Monday, but it remains to be seen, as bitcoin is perhaps forced sideways for a while, if this will continue.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
