Bitcoin remains around the $113,000 mark as analysts express anticipation for a resurgence in Bitcoin’s market dominance in the coming month. Notably, crypto analyst Benjamin Cowen predicts that October will see a significant increase in Bitcoin dominance, indicating a potential shift back towards the cryptocurrency before the next altcoin rally.
Cowen highlights the recent low in Bitcoin dominance at approximately 57.17% as a pivotal point, drawing parallels with similar patterns from 2017 and 2020. With current dominance figures near 58%, he suggests that a rise toward 63% to 64% is attainable, or at least a return to the 20-week moving average.
He outlined three scenarios that could facilitate this increase in dominance:
- Market Structure: A dip below the 20-week Simple Moving Average (SMA) could strengthen Bitcoin’s position relative to other cryptocurrencies.
- Consolidation: Maintaining the current support levels would favor Bitcoin over altcoins, potentially solidifying its dominance.
- Market Rally: A push towards all-time highs would also boost Bitcoin’s dominance, in line with historical trends.
Interestingly, October has historically proven to be a significant month for Bitcoin dominance, with average monthly returns of +4.8%, further supporting the forecast for an upswing. However, Cowen cautions that an immediate altcoin surge is unlikely due to low social interest and persistent challenges facing altcoins in the market.
He has also established specific invalidation levels; should dominance drop below the 55% to 56% range, it would contradict his bullish outlook. Cowen’s perspective positions October as a crucial month for Bitcoin, suggesting a BTC-driven phase before altcoins potentially regain momentum later in the bull market cycle.
