Bitcoin dominance hits 3-month high as ‘hammered’ altcoins risk dive

Bitcoin (BTC) ground greater on Oct. 10 after the start of tradition market trading saw “de-risking” take over.BTC/ USD 1-hour chart. Source: TradingViewBitcoins cost maintains weekly supportData from Cointelegraph Markets Pro and TradingView revealed BTC cost stability returning ahead of the Wall Street open.Bitcoin bulls had lost their footing as the week started, with BTC/USD heading to $27,300 before reversing to trade near $27,700 at the time of writing.” Overall theres been a lot of market de-risking into $27.4 K–$ 27.3 K,” popular trader Skew wrote in part of X analysis at the time.” Important area now since losing that level would take rates back to 1W need. Around here into tomorrow purchasers require to develop rate control for a relocation higher.” Continuing on the day, Skew kept in mind that derivatives traders controlled trajectory for the time being.” Better to see what area market desires later,” he recommended.$ BTC as you can see cost is quite associated to perp participation ~ positions going after the marketplace Better to see what spot market wants later on https://t.co/VH46ZsLRbO pic.twitter.com/S3GScvPDtc— Skew Δ (@ 52kskew) October 10, 2023

Some market participants were broadly positive, amongst them Michaël van de Poppe, creator and CEO of trading firm MN Trading.In his newest X post, van de Poppe described altcoins as being “hammered” by sell pressure, while Bitcoin held support. Bitcoin market cap supremacy 1-day chart. Source: TradingView” A lot of Altcoins looking like they are breaking significant assistance zones and bringing us some juicy brief entries,” popular trader Crypto Tony continued on the topic.On Bitcoin, Crypto Tony flagged $27,200 as the level to hold to prevent going short on BTC.

This article does not consist of financial investment guidance or recommendations. Every investment and trading move involves risk, and readers should perform their own research when deciding.

Bitcoin (BTC) ground greater on Oct. 10 after the start of tradition market trading saw “de-risking” take over.BTC/ USD 1-hour chart.” Better to see what area market wants later,” he advised.$ BTC as you can see cost is extremely much correlated to perp involvement ~ positions chasing after the market Better to see what spot market desires later https://t.co/VH46ZsLRbO pic.twitter.com/S3GScvPDtc— Skew Δ (@ 52kskew) October 10, 2023

Other Questions People Ask

What does it mean that Bitcoin dominance hits a 3-month high while altcoins are 'hammered'?

When Bitcoin dominance hits a 3-month high, it indicates that Bitcoin is gaining a larger share of the total cryptocurrency market capitalization compared to altcoins. This often occurs during periods of market uncertainty or de-risking, where investors prefer the relative stability of Bitcoin over more volatile altcoins. As altcoins face significant sell pressure, many are breaking key support levels, which could lead to further declines in their prices.

How does the current market trend affect Bitcoin and altcoins?

The current market trend shows Bitcoin stabilizing around $27,700, while many altcoins are experiencing substantial losses. This divergence suggests that investors are moving their capital into Bitcoin, viewing it as a safer asset amidst market volatility. If Bitcoin can maintain its support levels, it may continue to attract investment, while altcoins could face further risks of decline if they fail to recover from their recent sell-offs.

What key levels should traders watch for Bitcoin and altcoins?

Traders should closely monitor the $27,200 level for Bitcoin, as maintaining this support is crucial to avoid a potential downturn. For altcoins, many are breaking significant support zones, which could present short-selling opportunities for traders. Keeping an eye on these levels will help traders make informed decisions about entering or exiting positions in both Bitcoin and altcoins.

What strategies can investors use during this period of high Bitcoin dominance?

During this period of high Bitcoin dominance, investors might consider reallocating their portfolios to favor Bitcoin over altcoins. This could involve increasing their Bitcoin holdings while reducing exposure to altcoins that are underperforming. Additionally, investors should stay informed about market trends and technical indicators to identify potential entry and exit points, especially as altcoins may present short-selling opportunities.