A new altcoin rally may be just around the corner as Bitcoin dominance signals a short-term reversal.
Bitcoin (BTC) price, which has been stuck in a bear market for over two years, has regained its all-time high (ATH) amid rising demand from institutional investors. Institutional investors, led by spot Bitcoin ETF issuers, have been piling up BTC about 47 days after the fourth halving began. Additionally, miners’ daily Bitcoin supply will be reduced from 900 BTC to 450 BTC.
Now both retail traders and institutional investors are competing for the same supply of Bitcoin, bracing for a parabolic rally. As a result, experts led by Bitwise CIO Matt Hougan believe that Bitcoin price will rebound to a new ATH before the upcoming halving.
Bitcoin bull market takes a brief breather
With the Bitcoin price now confirmed to be in a macro bullish outlook, the inevitable near-term correction is just around the corner. According to reputable digital asset analyst MikyBull Crypto, Bitcoin’s dominance has peaked and is on the verge of an inevitable reversal. From a technical perspective, Bitcoin’s dominance on weekly time frames has led to the formation of rising wedge patterns, often followed by quick reversals.
silver lining
With Bitcoin’s weekly Fear and Greed Index suggesting extreme greed, market analysts are predicting a possible reversal in the near term. Moreover, Bitcoin price has reached a psychological resistance level around ATH. As a result, the ongoing cryptocurrency cycle, exaggerated by the meme coin rally, is expected to trigger a new alt season soon.
The inevitable approval of a spot Ethereum ETF in the US has been described as the ultimate trigger for a new altcoin season before the Bitcoin halving triggers a second wave of parabolic rallies.