As the countdown to the Bitcoin Halving ticks closer, the cryptocurrency market is witnessing a notable shift in investor sentiment, with Bitcoin dominance on the rise.
Bitcoin’s Resurgence
With just 23 days remaining until the highly anticipated Bitcoin Halving event, Bitcoin is regaining its strength in the market. After a period of decline, the cryptocurrency has surpassed the $71,000 mark, signalling renewed bullish momentum.
Impact on Altcoin Investment
Crypto analyst Benjamin Cowen suggests that Bitcoin’s resurgence may signal a shift in market dynamics, drawing liquidity away from altcoins and towards the leading cryptocurrency. As Bitcoin dominance continues to climb, altcoin investors are closely monitoring the ALT/BTC pairs for signs of weakening.
Weakening ALT/BTC Pairs
According to Cowen, Bitcoin dominance is expected to reach 56%, driven by liquidity flowing from altcoins as the halving event approaches. Monitoring ALT/BTC pairs becomes crucial, as a decrease to 39% or below could indicate a potential peak for Bitcoin’s price.
I think #BTC dominance will surge to 56% in the coming weeks. The halving is next month, and I think liquidity from ALTs will go to #BTC.
Thread pic.twitter.com/gFWHCFjiir
— Benjamin Cowen (@intocryptoverse) March 25, 2024
Ethereum’s Position and Bitcoin Price Analysis
Cowen predicts that Bitcoin’s strength may surpass Ethereum in the near future, potentially causing the ETH/BTC ratio to decline. Meanwhile, Bitcoin’s price analysis suggests a positive outlook, with the cryptocurrency aiming to break through key resistance levels, including $73,777, and potentially reaching $82,000 in the coming days.
Bitcoin’s trajectory leading up to the halving event reflects historical patterns observed in 2017 and 2021, hinting at a potential rally into April. As investors brace for the impact of the halving on Bitcoin’s price and market dominance, all eyes are on the evolving dynamics within the cryptocurrency landscape.
Also Read: Bitcoin Halving 2024: Countdown Begins