Examining Bitcoin’s dominance (BTC.D) over the cryptocurrency market revealed a potential shift that could catalyze substantial growth for altcoins in the near future. Historically, if BTC.D declines, altcoins, particularly Ethereum, see surges in price thereafter.
This pattern was evident during several crypto cycles, notably in 2017 and 2020-2021.
In 2017, Bitcoin’s dominance sharply fell from 63%. It aligned with a budding Ethereum’s moderate climb, achieving a 3.5 to 4x increase.
The more pronounced cycle in 2020/21 saw BTC.D tumble by 46% from its peak, corresponding with ETH soaring nearly 12x. The cycles showed ETH’s responsive rise to BTC’s loosening grip.
Currently, BTC.D has shown signs of peaking at 61.5%. If this trend descends into the 40-45% range, ETH could trend towards $9000, potentially replicating or exceeding past performances.
The relationship between BTC.D and Ethereum’s price dynamics suggested a cyclical opportunity. ETH could benefit from reduced pressure from BTC, leading to substantial gains.
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Is Ethereum Repeating Q4 2023 Pattern?
In support of continued rally was Ethereum’s price action that had a Golden Cross at the end of 2023—a bullish signal that was subsequently followed by a significant rally in Q1 of 2024.
This pattern was echoed as 2024 neared its close, indicating a potential repeat of historical performance. The repeated emergence of the pattern often heralded prolonged bullish phases.
Following this, the implication for the future price movements became increasingly apparent reinforcing the optimism surrounding ETH.
If the pattern persists, Ethereum price could realistically challenge $9,000. A threshold predicated on the strengthening fundamentals and increasing adoption of its network.
Ethereum could see substantial valuation increases, potentially surpassing previous all-time highs as it capitalizes on market conditions similar to previous successful cycles.
Smart DEX Whales Continue LTC Accumulation
Additionally Ethereum Smart DEX whales re-entered the market demonstrating strategic pattern of buying and selling that strongly influenced market movements.
Initially spotted in May 2023, the whale accumulated 75,400 ETH for $180.4 Million, at an average purchase price of $2,392 per token.
This pattern of acquisition strategically followed by selling 50,800 ETH for more than $172.8 Million, averaging $3,401, translated to significant profit margins.
The recent activity was a purchase of 6,000 ETH valued over $21.91 Million after the price dropped, suggesting whale’s acumen in capitalizing on market dips.
This continued buying behavior from experienced market participants like this whale not only reflected confidence in ETH’s future but also hinted at potential sustained upward momentum.
These patterns provide insights into possible future trends, with the whale’s actions suggesting ETH could potentially extend its rally, possibly breaching $9,000 if the current buying trend persists and conditions remain favorable.
