BTC Dominance Signal Indicates Investors’ Shifting Interest from Altcoins to Bitcoin: Discover the Reasons

Bitcoin dominance is on the rise as the highly anticipated halving event draws near. This surge in dominance has prompted investors to divert their attention and funds from altcoins to Bitcoin. The recent resurgence of Bitcoin has seen it reclaim the $71,000 mark after a period of decline.

Renowned crypto analyst Benjamin Cowen predicts that Bitcoin’s upward momentum could lead to a shift in market dynamics, with the cryptocurrency attracting liquidity away from altcoins. Cowen expects Bitcoin’s dominance to reach 56% in the near future, attributing this increase to the impending halving event. As the halving draws closer, he believes that liquidity from altcoins will flow into Bitcoin.

Cowen emphasizes the significance of monitoring ALT/BTC pairs, as a decrease in these pairs could indicate a local top for Bitcoin. Currently, ALT/BTC pairs are at 47%, but a decrease to 39% or below would suggest a potential turning point for Bitcoin.

Drawing on historical patterns, Cowen points out that in both 2017 and 2021, Bitcoin experienced a low point in March before rallying in April. This observation 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, potentially leading to a breakdown in the ETH/BTC ratio. He believes that once the ratio falls to 0.03-0.04, it could stabilize at the 0.05 level until the end of the year before rebounding.

In terms of price analysis, Bitcoin has started the week positively, hovering around $70,404 and aiming to maintain its position above the $70,000 mark. Analysts speculate that if the price remains above $69,000, the BTC/USDT pair could surge to the key resistance level of $73,777. While this level presents significant resistance, a successful breakthrough could propel the pair to $82,000.