Fresh Altcoin Rally on the Horizon as Bitcoin Dominance Signals Short-term Reversal
Zameer Attar5 Mar 20241 min read
After more than two years trapped in a bear market, Bitcoin’s (BTC) price revisited its all-time high (ATH) amid heightened demand from institutional investors. Institutional investors led by the spot Bitcoin ETF issuers have been piling up BTCs about 47 days into the fourth halving. Furthermore, miners’ daily supply of Bitcoins will be slashed from 900 to 450 BTCs.
Both retail traders and institutional investors are now competing for the same supply of Bitcoins in preparation for the parabolic rally. Consequently, experts led by Bitwise CIO Matt Hougan believe Bitcoin price will rally to a new ATH before the upcoming halving.
Bitcoin Bull Run to Take a Short Breather
Having established that Bitcoin price is now in a macro bullish outlook, an inevitable short-term correction is looming on the horizon. According to a reputable digital asset analyst MikyBull Crypto, Bitcoin’s dominance is on the precipice of topping and inevitable reversal. From a technical perspective, Bitcoin dominance on the weekly time frame has been forming a rising wedge pattern that is often followed by a quick reversal.
The Silver Lining
With Bitcoin’s weekly fear and greed index suggesting extreme greed, market analysts forecast a possible reversal in the near term. Furthermore, Bitcoin price has reached a psychological resistance level around the ATH. Consequently, the ongoing crypto cash rotation that has been exaggerated by the meme coins rally is expected to trigger a fresh altseason soon.
The inevitable approval of the spot Ethereum ETFs in the United States has been described as the ultimate trigger for a fresh altcoin season before the Bitcoin halving triggers the second wave of the parabolic rally.
