Bitcoin Dominance May Soon Hit 60%: Here’s How the Altcoins May React!
The post Bitcoin Dominance May Soon Hit 60%: Here’s How the Altcoins May React! appeared first on Coinpedia Fintech News
In an interesting move, the Bitcoin price dropped and formed bottoms close to $60,500 in the early trading hours. This has slashed the other altcoins, including Ethereum, which fell below $3000 and is trying hard to reclaim the levels. While the recovery can be expected to prevail for a long time, it also displays the possibility of a bull trap as the BTC bearish trend does not appear to have reached its pinnacle.
Bitcoin dominance is constantly rising, which suggests that traders are more interested in dealing with the token. This could be the main reason that the volatility of the altcoins, including Ethereum, has dropped to a large extent. Besides, the dominance is expected to surge high and reach 60%, as predicted by one of the prominent analysts, Benjamin Cowen.
According to him, whenever the technicals suggest the beginning of a recovery, it hints towards Fed rate cuts aiming to minimise the damage and hope for a ‘soft landing’. The analyst believes the dominance may peak sometime between September and December 2024, however, it may mark 60% any time from now.
While Bitcoin appears to be growing in strength massively, what could be the state of altcoins?
A popular analyst, Michael van de Poppe, has been closely observing the market dynamics and believes that reversals could be on the horizon.
The analyst refers to the crypto market capitalization, excluding Bitcoin & Ethereum, which have faced fresh bearish pressure. The smaller altcoins have been collapsing, while the large-cap altcoins are standing strong. Therefore, the bearish consolidation may soon hit the lower support zone, which is expected to trigger a reversal in the coming days.
Hence, the market dynamics may hint towards a bearish continuation with a rise in BTC dominance. However, a reversal appears to be pre-programmed, which may trigger a reversal in a short while.
