- Bitcoin dominance has reached the peak of the halving stage, and crypto analysts now anticipate Bitcoin to bottom out, lifting altcoins to higher levels.
- Michaël Van de Poppe emphasized that Bitcoin dominance peaked before the Halving scheduled for April.
- CrediBULL Crypto suggests a complete reversal of the downtrend if BTC surpasses $42,500.
While Bitcoin price has stagnated after the approval of spot Bitcoin ETFs, Bitcoin Dominance is surpassing 51%!
Bitcoin Dominance Continues to Rise
Bitcoin (BTC) is reaching low levels one week after the approval of spot Bitcoin ETFs. Additionally, the BTC price has dropped below $42,000. Moreover, Bitcoin dominance has reached the peak of the halving stage, and crypto analysts now anticipate Bitcoin to bottom out, lifting altcoins to higher levels.
Bitcoin dominance increased by 0.19% on Sunday, January 21, reaching 51.12%. Michaël Van de Poppe emphasized that Bitcoin dominance peaked before the Halving scheduled for April. Also, history is “repeating,” he said. Poppe added, “It happened in 2016, it happened in 2020, and it seems like it will happen again in 2024.”
Furthermore, he noted that if Bitcoin bottoms out, altcoins will surpass the largest cryptocurrency. Therefore, we can understand that a mega altcoin rally is approaching. On the other hand, another analyst, CrediBULL Crypto, suggests a complete reversal of the downtrend if BTC surpasses $42,500.
However, the analyst added that failure to clear this level on the first attempt could lead to further declines. “If we don’t clear on the first try, I think it would make sense to establish a range here for a while and after a second attempt for a double-bottom cleanout, a reversal would make sense,” he said.
The analyst later noted that the decline would not be significant and there is no need for an “overly bearish” perspective. He emphasized that the $40,000 to $40,500 region, which has acted as strong support for Bitcoin since December 11, is a reliable dip zone where a reversal is quite possible.
BTC Price Movement
Bitcoin is currently trading around $41,760, showing a significant drop of 15% from the high of $48,969 recorded shortly after the approval of spot Bitcoin ETFs. However, on Saturday, the crypto value recovered slightly. At the time of writing, the BTC price is trading at $41,760, up by 0.15%.
The market cap of the oldest cryptocurrency increased by 0.71% to $816.51 billion. On the other hand, trading volume has decreased significantly. The 24-hour trading volume for BTC dropped by 16.81% to $22.17 billion.
