Bitcoin (BTC), the world’s first cryptocurrency, has been attaining lower lows a week after the iconic approval of Spot Bitcoin ETFs. In addition, the BTC price extended below the $42,000 level. Moreover, Bitcoin dominance has peaked in the pre-halving phase and crypto analysts are now expecting Bitcoin to hit the bottom, which could propel altcoins higher.
According to TradingView analytics, Bitcoin dominance has grown to 51.24%, representing a 0.19% increase on Saturday, January 20. Michaël Van de Poppe, a crypto analyst on social media, highlighted that Bitcoin dominance is peaking right before the Halving impending in April. In addition, he mentioned that history is “repeating” itself.
Poppe added, “It has happened in 2016, 2020 and seems likely to happen in 2024 as well.” Furthermore, he stated that if Bitcoin bottoms out, altcoins would outperform the largest crypto. Hence, we can comprehend that a mega altcoin rally is indeed impending.
On the other hand, CrediBULL Crypto, another analyst, took to X and suggested that Bitcoin has to surge past the ‘red’ area noted in the chart he shared. The chart indicated that if BTC breaks out above $42,500 a complete reversal of the bearish trend could take place.
However, the analyst added that failing to break out from this level in the first attempt itself could lead to further lows. He wrote, “If we fail to clear it on the first attempt I think forming a range here for one more sweep of the lows to clean up that double bottom before a second attempt makes sense.”
The analyst then mentioned that the drop wouldn’t be major and an “overly bearish” outlook isn’t needed. He underscored that the $40,000 to $40,500 region has acted as a strong support for Bitcoin since December 11, which serves as a reliable bottom zone for this range as a reversal is very much possible from here.
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Bitcoin is currently trading near $41,500, suggesting a massive 15% decline from its high of $48,969 recorded right after the approval of Spot Bitcoin ETFs. However, on Saturday, the crypto’s value rebounded slightly. As of writing, the BTC price was up by 0.63% as it traded at $41,627.47.
Whilst, the oldest crypto’s market cap was recorded to be $816.51 billion, up by 0.71%. On the other hand, the trade volume dipped significantly. In the past 24 hours, the trading volume for BTC plunged by 16.81% to $22.17 billion. Earlier, the crypto locked the day’s high at $42,134.16, before plummeting below the $42,000 mark.
Also Read: Bitcoin ETF: Fierce Competition Between BlackRock And Fidelity As Volume Jump
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