Anticipate an Upcoming Surge in Altcoin Value as Bitcoin Dominance Indicates a Temporary Reversal
Bitcoin’s price has finally reached its all-time high after being stuck in a bear market for over two years. This surge in price is largely due to increased demand from institutional investors, particularly those involved in the spot Bitcoin ETF market. These investors have been accumulating Bitcoin for the past 47 days since the fourth halving. Additionally, the daily supply of Bitcoin from miners will be reduced from 900 to 450 BTCs.
Both retail traders and institutional investors are now vying for the limited supply of Bitcoin in anticipation of a parabolic rally. Bitwise CIO Matt Hougan and other experts believe that Bitcoin’s price will continue to rise and reach a new all-time high before the upcoming halving.
However, before this bullish trend continues, there may be a short-term correction on the horizon. Bitcoin’s dominance in the market is close to reaching its peak, signaling a potential reversal. Technical analysis shows that Bitcoin’s dominance has been forming a rising wedge pattern, which usually leads to a quick reversal.
Despite this, there is still hope for the cryptocurrency market. The fear and greed index for Bitcoin on a weekly basis suggests extreme greed, indicating a possible reversal in the near future. Additionally, Bitcoin’s price has reached a psychological resistance level around its all-time high. This, combined with the ongoing rotation of funds from meme coins to other cryptocurrencies, is expected to trigger a fresh altcoin season.
The approval of spot Ethereum ETFs in the United States is seen as the catalyst for this altcoin season. It is believed that this approval will occur before the Bitcoin halving, which will then trigger a second wave of the parabolic rally.
In conclusion, Bitcoin’s price has finally reached its all-time high, thanks to increased demand from institutional investors. While a short-term correction may be imminent, there is still optimism for the cryptocurrency market, with the potential for a fresh altcoin season triggered by the approval of Ethereum ETFs.