Bitcoin (BTC), the leading cryptocurrency, has been experiencing a downward trend a week after the historic approval of Spot Bitcoin ETFs, with its price dropping below $41,000. As the Bitcoin halving approaches, Bitcoin’s dominance has peaked, leading analysts to suggest an imminent price bottom for Bitcoin, potentially triggering higher prices for altcoins.
Analyst Michaël Van de Poppe noted that Bitcoin dominance, which increased to 51.24% following a 0.19% rise on January 20, is peaking just before the anticipated April halving. He also mentioned the historical tendency for such patterns to repeat, suggesting a possible scenario for 2024.
Van de Poppe proposed that if Bitcoin hits a bottom, altcoins could outperform BTC, hinting at the possibility of a significant altcoin rally. Another prominent analyst, CrediBULL Crypto, indicated that Bitcoin needs to cross the ‘red’ zone on his shared chart; a rise above $42,500 could end the downward trend.
However, CrediBULL Crypto warned that if the first attempt to break through fails, a scan for lower levels might occur before a second attempt. He also emphasized that the price region between $40,000 and $40,500 has been a strong support for Bitcoin since December 11 of the previous year, cautioning that losing this support could lead to market chaos.
Currently, Bitcoin is trading around $41,500, struggling to maintain above the $41,000 level after a sharp 15% drop from the $49,000 mark seen immediately following the ETF approval. Despite a 1.36% increase in market value to $813 billion, Bitcoin’s 24-hour trading volume has fallen more than 25%, sitting below $21 billion.