Bitcoin’s recent rally to $44,490 has hit a roadblock as Ethereum (ETH) and Solana (SOL) gain ground, causing market participants to question the sustainability of BTC’s dominance in the crypto market. Some analysts even suggest that Bitcoin may face the possibility of a significant correction, potentially pushing it back to $30,000 or even closer to $20,000 before reaching new all-time highs.
Altcoins steal the limelight
Bitcoin’s price surge earlier this week, reaching 19-month highs, seemed promising. However, the attention quickly shifted to altcoins, particularly Ethereum and Solana. ETH and SOL have made significant gains, and this shift in focus has prompted analysts to label Bitcoin’s recent rally as a “potential false breakout.”
Bitcoin’s dominance in the overall crypto market cap reached 55.26%, coinciding with the BTC price hitting its recent highs—marking the highest reading since April 2021. Matthew Hyland, a popular crypto analyst, expressed his concerns, stating that Bitcoin would need to close above support to avoid a potential downturn. As of the time of writing, Bitcoin’s dominance stood at around 53.9%, below the critical 54.35% mark Hyland mentioned.
Altcoins capitalize on the situation
During this period of uncertainty, some major altcoins seized the opportunity. Ethereum’s price surged to $2,392 before experiencing a modest correction. Solana, on the other hand, reached $72.88 on Bitstamp, its highest level since May 2022. Investors have shown increased bullish sentiment, particularly regarding the potential for three-figure prices in the future.
As Bitcoin momentarily lost momentum, research firm Santiment noted that fear, uncertainty, and doubt (FUD) surrounding the possibility of an altcoin breakout could actually benefit Bitcoin. Traders expressed concerns that the crypto markets might be in a bull trap, but despite Bitcoin’s pause, Ethereum and other altcoins continued to rise. Santiment suggested that FUD might drive Bitcoin to the $50,000 mark if it intensifies.
Mixed sentiments in the Bitcoin market
While Bitcoin market participants observe the recent price drop with caution, some remain optimistic. Credible Crypto, a well-known trader, believes that Bitcoin is in an accumulation phase before the “next leg up” for the largest cryptocurrency. However, not everyone shares this optimism, as some analysts predict a more substantial correction that could potentially push Bitcoin’s price down to $30,000 or even closer to $20,000 before achieving new all-time highs.