The price of bitcoin fluctuated between $10200 and $10400 on Friday but it seems to be on a rise as it entered the weekend. The top ranking digital asset seemed to have tightened into a pennant earlier today after making a double bottom at $9838. Consequently, the asset created a pattern of higher lows that have taken the price into a tighter range.
The trading volumes are still lower than the market expected and would like them to be. However, the moving average convergence divergence indicator demonstrates the MACD pulling closer to the signal line while the shorter bars on the histogram shows that selling volumes are going down.
The RSI is still below the midline and although Bitcoin has gone above the 100-MA, a breakthrough is needed for the pennant to flip $10500. Such a shoot is what traders are looking out for and if it would happen, bulls in the market would take a chance to exploit the VPVR gap from $10500 to $1000. However, there is a likelihood that before the price can reach $11300, there will be a resistance at $10900.
The dominance index for Bitcoin currently stands at 56.8% according to CoinMarketCap. The dominance of this asset has been supported by many factors. Even as the price has fluctuated over the years, it has still maintained its spot at the top, as altcoins battle to its have recognition and trading volumes.
Reasons for Bitcoin dominance
Many investors in the crypto space view Bitcoin as a store of value as opposed to other coins, making it easier for them to buy, store and trade with BTC. It is not the case with altcoins though, as their value is in most cases pegged on the value of Bitcoin and in most cases, they are more volatile. Therefore, the safer coin remains Bitcoin as history has demonstrated that it can withstand and conquer all market challenges.
It is still hard for many people to sell altcoins without converting them to Bitcoin. This challenge puts Bitcoin at an advantage, as more people will be inclined to trade with it due to the ease of transacting as opposed to going into so much trouble with smaller altcoins. For this reason, the trading volumes as well as demand and supply of Bitcoin have contributed to its value and price, which are proportional to its place in the market. Investors in a hurry to cash out or invest would definitely choose Bitcoin as more people are trading it, and it can be traded without using exchanges.
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