Bitcoin’s Dominance Signal Causes Investors to Shift Interest from Altcoins to Bitcoin – Here’s the Reason

Bitcoin’s dominance in the cryptocurrency market is on the rise ahead of the upcoming halving event, leading to a shift in market dynamics. As Bitcoin’s strength continues to grow, it is drawing liquidity away from altcoins and attracting more investment. Analyst Benjamin Cowen predicts that Bitcoin’s dominance could reach 56% in the near future, as liquidity from altcoins flows into Bitcoin.

Cowen also highlights the significance of monitoring ALT/BTC pairs, as they serve as an indicator of investor preference. Currently, ALT/BTC pairs stand at 47%, but if they decrease to 39% or below, it could signal a potential peak for Bitcoin. By examining historical patterns, Cowen observes that in both 2017 and 2021, Bitcoin experienced a dip in March before rallying in April. This suggests a recurring trend in Bitcoin’s price movements during this period.

Furthermore, Cowen predicts that Bitcoin’s strength will surpass Ethereum in the coming weeks, causing the ETH/BTC ratio to decline. Once this ratio falls to 0.03-0.04, it is likely to stabilize at the 0.05 level for the rest of the year before rebounding.

In terms of Bitcoin’s price analysis, it has started the week positively, currently hovering around $70,404. If the price remains above $69,000, analysts believe that the BTC/USDT pair could surge to the key resistance level of $73,777. While this level presents a significant obstacle, a successful breakthrough could propel the pair to $82,000.