Bitcoin Dominance Exceeds 51% in Pre-Hallowing Phase, What’s Next?
Bitcoin (BTC), the world’s first cryptocurrency, broke lower a week after the iconic approval of Spot Bitcoin ETFs. Additionally, BTC price climbed below the $42,000 level. Moreover, Bitcoin dominance peaked in the pre-halving phase, and crypto analysts now expect Bitcoin to bottom out, which could push altcoins even higher.
Bitcoin Dominance and Analyst Predictions
Bitcoin dominance increased by 0.19% to 51.24% on Saturday, January 20, according to TradingView analytics. On social media, crypto analyst Michaël Van de Poppe emphasized that Bitcoin dominance peaked in April ahead of the upcoming Halving. He also stated that history is repeating itself.
Poppe added: “This happened in 2016 and 2020, and it looks likely to happen in 2024.” He also noted that if Bitcoin hits bottom, altcoins will outperform the largest crypto. Therefore, we can understand that the mega altcoin rally is indeed approaching.
Source: CrediBULL Crypto | X
On the other hand, another analyst, CrediBULL Crypto, headed towards X and suggested that Bitcoin should surpass the ‘red’ area mentioned in the chart he shared. The chart shows that the downtrend could completely reverse if BTC breaks above $42,500.
However, the analyst added that failure to break out of this level in the first attempt could lead to even lower levels. He wrote: “If we fail to do this on the first try, I think it would make sense to create a gap here to scan the bottoms one more time to clear the double bottom before a second try.”
The analyst later stated that the decline would not be large and there was no need for an “extremely bearish” outlook. He highlighted that the region between $40,000 and $40,500 has served as strong support for Bitcoin since December 11; This region serves as a reliable sub-region for this range as a return from here is very possible.
So read:
BTC Price Movement
Bitcoin is currently trading around $41,500, marking a massive 15% decline from the high of $48,969 recorded just after the approval of the Spot Bitcoin ETFs. However, on Saturday, the crypto’s value recovered slightly. As of the time of writing, BTC price was traded at $ 41,627.47, with an increase of 0.63%.
The market value of the oldest cryptocurrency was recorded as 816.51 billion dollars, with an increase of 0.71%. On the other hand, there was a serious decrease in trade volume. In the last 24 hours, BTC’s trading volume decreased by 16.81% to $22.17 billion. Earlier, the crypto locked the day’s high at $42,134.16 before falling below the $42,000 level.
Also Read: Bitcoin ETF: Fierce Competition Between BlackRock and Fidelity as Volume Surges
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