By
Godfrey Benjamin
April 29th, 2024
Bitcoin dominance has signaled an inevitable reversal that could pave the way for the altcoin industry to shine led by Ethereum (ETH).
After opening Monday on a robust bullish outlook following the breakout from a micro pennant pattern, Bitcoin (BTC) price is currently undergoing a correction to retest the falling logarithmic trend. The flagship coin is gathering momentum to break through the psychological resistance level of around $74,000.
Furthermore, the highly anticipated fourth Bitcoin halving is about 11 days from happening, which will reduce its annual inflation from 1.68 percent to about 0.84 percent.
Bitcoin Market Overview
Bitcoin price led the altcoin industry in tangible gains during the first quarter following the approval of spot BTC ETFs in the United States. The supply of Bitcoin on centralized cryptocurrency exchanges has continued to drop after hitting a multi-year low earlier. According to on-chain data analysis provided by Glassnode, almost 111,000 Bitcoins, worth more than $7.5 billion, have been withdrawn from known top-tier cryptocurrency exchanges in the last month alone.
As a result, most experts are super bullish on Bitcoin and the entire altcoin industry in the coming quarters fueled by the ongoing supply vs demand shock. Furthermore, Gold and major stock indexes have been scaling higher in price discovery mode, thus indicating the bulls are in control.
Gold market is definitely discounting lower interest rates ahead $GC_F pic.twitter.com/DVkZqSc1X9
— Peter Brandt (@PeterLBrandt) April 8, 2024
The anticipated interest rate cuts later this year by the United States Federal Reserve remains one of the most bullish indicators for this cycle. As veteran trader Peter Brandt pointed out, Gold has always performed well in history after every time the Fed completed rate hikes.
Peter Brandt’s Prediction on BTC Price Action
For the first time in the history of Bitcoin price action during the four-year cycles, the flagship coin is likely to cross the halving event above the last cycle’s all-time high. According to Brandt, Bitcoin price has been forming a bullish pattern through the legendary Hump Slump Bump Lump Dump (HSBLD) indicator.
As a result, the popular trader expects Bitcoin price to continue in a bullish outlook to a new ATH, before retracing after the halving event. Moreover, there is a high chance that the upcoming Bitcoin halving will turn out to be a temporary sell-the-news event.
This same basic pattern has been common in past bull markets in Bitcoin https://t.co/owOGKhjkr1 pic.twitter.com/xiwVRExzOi
— Peter Brandt (@PeterLBrandt) April 9, 2024
On the Flipside
The Bitcoin market has begun bleeding to the altcoin industry as the dominance has consolidated below 54 percent in the past few months. According to Brandt, Ethereum is about to tune extremely bullish after the ETH/BTC pair reached a multi-year low with a bullish divergence on the weekly Relative Strength Index (RSI).
Meanwhile, Hayes has indicated in his latest blog post that he believes the Fed’s “bag of tricks” and the upcoming Bitcoin halving will lead to a crypto “firesale”.
“The narrative of the halving being positive for crypto prices is well entrenched. When most market participants agree on a certain outcome, the opposite usually occurs. That is why I believe Bitcoin and crypto prices in general will slump around the halving,” Hayes noted.