Investor Interest Shifting from Altcoins to Bitcoin as BTC Dominance Signal Changes – Here’s the Reason

Bitcoin’s dominance in the cryptocurrency market is on the rise as the Bitcoin Halving event approaches, leading to a shift in market dynamics. This resurgence in Bitcoin’s strength is drawing liquidity away from altcoins, according to analysts.

Benjamin Cowen, a crypto analyst, predicts that Bitcoin’s dominance will reach 56% in the near future. He attributes this increase to the upcoming halving event, which is causing investors to move their funds from altcoins to Bitcoin. Cowen advises monitoring ALT/BTC pairs as an indicator of Bitcoin’s preferred status among investors. Currently, these pairs stand at 47%, but a drop to 39% or lower could signal a peak for Bitcoin.

Cowen highlights a historical pattern where Bitcoin experienced a low in March before rallying in April, which could indicate a recurring trend in its price movements during this period.

Furthermore, Cowen suggests that Bitcoin’s strength will surpass Ethereum in the coming weeks, potentially causing the ETH/BTC ratio to decline. He predicts that once the ratio falls to 0.03-0.04, it will stabilize at 0.05 until the end of the year before rebounding.

As for Bitcoin’s price, it has started the week positively, currently trading around $70,404. Analysts believe that if the price remains above $69,000, the BTC/USDT pair could surge to the key resistance level of $73,777. Although this level poses significant resistance, a successful breakthrough could propel the pair to $82,000.