Bitcoin’s (CRYPTO: BTC) continued dominance over the crypto market is setting the stage for a potential rally to new highs, with traders eyeing $93,000 in the near term.
What Happened: In a podcast published on Tuesday, crypto analyst Benjamin Cowen emphasized that Bitcoin dominance is surging, breaking out of a multi-year wedge and currently sitting at 63.08%, or nearly 69% excluding stablecoins.
He argues that in an environment of quantitative tightening by the Federal Reserve, Bitcoin offers better risk-adjusted returns compared to altcoins.
“Every dollar in an altcoin is a dollar not in Bitcoin,” Cowen warned, adding that altcoin valuations remain too high relative to BTC and may have further downside before any true alt season can begin.
Don’t Miss:
- Thanks for being a Benzinga reader! As a small thank you, buy $100 worth of crypto on Gemini and receive $20 in free Bitcoin with code BENZINGA20.
- Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies.
Historically, altcoin rallies start from range lows in the alt/BTC ratio, which is still elevated, suggesting Bitcoin will remain the stronger bet until macro conditions shift, likely when the Fed pivots to easing.
What’s Next: Crypto trader Bluntz Capital spotted an ABC pattern forming on Bitcoin’s hourly chart, signalling a potential new bullish trend. He predicts a rally to above $88,000, with further upside open to speculation.
An ABC pattern implies the start of a new trend, retracement or pullback from an initial trend and continuation from there.
Trader Pump Truck believes Bitcoin is on track for $92,000–$93,000, with $90,000 acting as a likely short trap that could fuel a sharp squeeze higher.
If a dip comes first, he sees anything under $81,500 as a solid long and calls a drop below $78,000 “free money” with invalidation at local lows.
Interestingly, while he’s bullish on BTC in the short term, he expects Ethereum and select altcoins to outperform Bitcoin percentage-wise during the next leg up possibly driving total crypto market cap toward $3.4 trillion.
He plans to shift into a more defensive posture once Bitcoin reclaims its 100-day moving average, unless momentum remains strong.
Related Bonuses:
- New to crypto? Get up to $400 in rewards for successfully completing short educational courses and placing your first qualifying trade on Coinbase.
- Trade, earn, and grow your crypto portfolio with Crypto.com — plus receive up to $500 worth of rewards in the most popular tokens if you’re a new customer.
Image: Shutterstock
Recent Comments