Bitcoin Dominance Tops Out, Ethereum Set for 170% Potential Rally
- Bitcoin dominance may be peaking, suggesting an upcoming altcoin rotation.
- BTC price holds crucial support near $91.5K, with a potential test at $100K.
- Ethereum shows strong support, mirroring past cycles with high potential upside.
Crypto strategist Michaël van de Poppe noted that the current market behavior resembles the Q3/Q4 2019 period, particularly in terms of Bitcoin dominance and altcoin performance.
Historically, when Bitcoin dominance reaches high levels, capital often shifts from altcoins into Bitcoin. In 2019, dominance peaked around 70%, stayed in a consolidation phase for months, and eventually fell sharply in 2021, triggering a major altcoin cycle.
According to the latest chart data, Bitcoin dominance had been increasing in terms of percentage from the mid-40% levels to the mid-60% levels, but seemed to top off in a wide distribution-type range. There was a retracement to the vicinity of 59%.
The indicators, including the moving average, show a trending decline in momentum that may translate to a fall. A scenario in the coming months may see dominance decline to the low 50% or mid-40% regions if a repetition of the events of 2019-2020 unfolds.
Bitcoin Price Holds Key Levels
According to Van de Poppe, one thing to notice about Bitcoin’s prices is that they have remained relatively stable for the past few weeks. He also thinks that the market may be forming a bottom. If the support level of $91.5K is maintained, he believes that Bitcoin may surge to $100K in the coming week.
A move below the current price levels may see a test of $85K. This may create a double bottom pattern that may imply the completion of the correction of Bitcoin and a consequent bullish trend.
Ethereum Mirrors Past Strength
Analyst Mags pointed out that Ethereum vs. Bitcoin is nearing a low comparable to the last cycle. Currently, strong support for ETH exists. At a comparable point in the past, ETH appreciated by 170% in a span of seven weeks. Subsequent slow selling followed. Seven weeks of unbroken gains occurred.
According to the expert, the interest in Ethereum continues to grow, while the dominance of Bitcoin seems to stabilize. This may attract more funds into the altcoins.
If the dominance of Bitcoin doesn’t continue to grow but ETH sustains the strong cycle support level, the market may transition to altcoins. This was also the case in the 2021 bull season. Market participants would monitor Bitcoin support levels around $91.5K or Ethereum breakouts.
Also Read: Ethereum (ETH) Trends Higher as $68.67M Accumulation Report Boosts Bullish Outlook
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