Bitcoin (BTC) Important Signals: Dominance May Reach Peak, Short-term Consolidation Flashing "Strong Sell" Indicator

After Bitcoin (BTC) hit a historic high of 123,000 USD, it continued to correct during the Asian session today (16th). Crypto assets analyst Matthew Hyland stated that if the price of Ether (ETH) continues to maintain an upward trend, Bitcoin Dominance will reach its peak.

Hyland stated in a post on X (formerly Twitter) on Tuesday: "If ETH breaks through the bullish trend and continues to pump BTC, then the possibility of BTC dominance reaching its peak is 99%."

He added, "If ETH continues to rise against BTC, then Bitcoin's dominance will basically no longer be able to rise."

According to TradingView data, Bitcoin's dominance (a measure of Bitcoin's market share) was 63.82% at the time of publication, having increased by 9.89% since January 1.

In the past seven days, Bitcoin's dominance has dropped by 1.85%. Crypto trader Ash Crypto stated that this is due to "capital inflow into ETH and altcoins."

The rising dominance of the Bitcoin market often indicates that investors prefer Bitcoin over altcoins, while a drop in Bitcoin's price may signal a growing confidence in the broader altcoin market.

At the same time, Ethereum has increased by 19.87% in the past seven days, trading at $3,117. Crypto Assets trader Cas Abbe stated that the asset is in one of the most obvious bullish flag patterns, "and is getting closer to a breakout."

Bitcoin may consolidate in the short term

In the past 30 days, the relative strength of Ether against Bitcoin has surged by nearly 10%.

Charles Edwards, founder of Capriole Investments, stated that he expects the Bitcoin market to cool down after reaching a recent peak on Monday, but believes the upward trend will rebound before the end of the year.

He continued to state: "I believe that after significant volatility, there will be some consolidation here, but ultimately it will rise before the end of the year."

Despite TradingView's Bitcoin moving average indicator showing the asset as a "strong sell," many Crypto Assets analysts predict that the asset will pump further before the end of the year.

Matt Mena, a cryptocurrency research strategist at 21Shares, stated that Bitcoin is unlikely to enter a downward trend anytime soon, as strong fundamentals support its movement.

(Source: Trading View)