Bitcoin, the leading cryptocurrency, has closed every month in green, that is, with an increase, since last August.
However, BTC appears to be on track to end its seven-month winning streak, which started in September. Because Bitcoin is preparing to close April in red after 7 months.
While many analysts have made different assessments on this issue, the reason why Bitcoin closed April with a decline is a number of factors such as the reduced likelihood of the FED to cut interest rates in 2024, the decrease in demand for US-based spot Bitcoin ETFs and broad-based risk aversion in financial markets. He thinks it is effective.
While analysts generally expect further declines in the BTC price, Fairlead Strategies analysts are bullish for BTC.
According to Coindesk, Fairlead Strategies analysts said that the Bitcoin dominance rate has risen above a critical level, which is a signal for further rise.
Stating that Bitcoin's dominance rate increased to 57%, the highest level in three years, and exceeded the six-month consolidation model, Fairlead Strategies analysts said that this rise means that Bitcoin will outperform altcoins in the coming months and may continue to overshadow altcoins.
“Bitcoin dominance rate has increased recently. This shows that investors prefer Bitcoin over altcoins in the medium term.
This also seems consistent with the weekly RRG (relative rotation chart), where most altcoins are pointing lower.
“The upward break in Bitcoin dominance rate signals a continuation of a long-term reversal phase that reverses much of the altcoin gains made in early 2021.”
Despite the 13% decline in Bitcoin in April, the increasing dominance rate is considered a sign that BTC is the focal point for investors and will continue its rise in the future.
*This is not investment advice.
