As the countdown to Bitcoin’s halving approaches, the cryptocurrency market is witnessing a noticeable shift in investor sentiment, including Bitcoin’s rising dominance.
Bitcoin’s Resurgence
With only 23 days left until the much-anticipated Bitcoin halving event, bitcoin It is gaining strength again in the market. After a period of decline, the cryptocurrency surpassed $71,000, signaling new bullish momentum.
Impact on Altcoin Investment
Crypto analyst Benjamin Cowen suggests that Bitcoin’s resurgence could signal a change in market dynamics, drawing liquidity away from altcoins and towards leading cryptocurrencies. As Bitcoin dominance continues to rise, altcoin investors are closely monitoring the ALT/BTC pair for signs of weakness.
ALT/BTC pair weakens
According to Cowen, Bitcoin dominance is expected to reach 56%, driven by liquidity flowing from altcoins as the halving approaches. It is important to monitor the ALT/BTC pair. This is because a decline below 39% could indicate a potential peak for the Bitcoin price.
I think #BTC In the coming weeks, dominance will soar to 56%. The halving is next month and ALT’s liquidity is likely to go into next month. #BTC.
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— Benjamin Cowen (@intocryptoverse) March 25, 2024
Ethereum location and Bitcoin price analysis
Cowen predicts that Bitcoin’s strength could surpass Ethereum in the near future, potentially causing the ETH/BTC ratio to decline. Meanwhile, Bitcoin’s price analysis suggests a positive outlook for the cryptocurrency, aiming to break key resistance levels including $73,777 and potentially reach $82,000 in the next few days.
Bitcoin’s trajectory leading up to the halving mirrors historical patterns observed in 2017 and 2021, suggesting a potential rebound by April. As investors brace for the impact of the halving on Bitcoin price and market power, all eyes are on the evolving dynamics within the cryptocurrency landscape.
Also Read: Bitcoin Halving 2024: The Countdown Begins