Here’s Why BTC Dominance is Shifting Investor Interest from Altcoins to Bitcoin

Bitcoin Dominance Rises Ahead of Halving, Attracting Investment from Altcoins

As the Bitcoin Halving approaches, Bitcoin has started to regain its momentum. After a period of decline, the cryptocurrency has once again surpassed the $71,000 mark.

Crypto analyst Benjamin Cowen believes that this upward movement in Bitcoin’s price could lead to a shift in market dynamics. As Bitcoin’s dominance continues to increase, Cowen predicts that liquidity will flow from altcoins to Bitcoin.

Cowen expects Bitcoin dominance to reach 56% in the near future, attributing this rise to the upcoming halving event. He suggests that as the event draws closer, investors will redirect their investments from altcoins to Bitcoin.

To gauge the market sentiment, Cowen advises monitoring ALT/BTC pairs. Currently at 47%, a decrease to 39% or below could indicate a local top for Bitcoin. This observation is based on historical patterns, as Cowen notes that Bitcoin experienced a similar price movement in both 2017 and 2021.

Furthermore, Cowen predicts that Bitcoin’s strength will surpass that of Ethereum in the coming weeks. This could result in a breakdown of the ETH/BTC ratio. Cowen anticipates that the ratio will fall to 0.03-0.04 and stabilize at the 0.05 level until the end of the year before rebounding.

In terms of Bitcoin’s price analysis, the cryptocurrency is currently hovering around $70,404 and aiming to maintain its position above $70,000. Analysts suggest that if the price remains above $69,000, the BTC/USDT pair could surge to the key resistance level of $73,777. While breaking this level may prove challenging, a successful breakthrough could propel the pair to $82,000.