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Bitcoin prices rose 1.5% after the Federal Reserve announced an interest rate hike to 5.50% to fight inflation.
However, Bitcoin’s dominance continues to decline, indicating the awakening of altcoins.
Bitcoin (BTC) was up slightly by about 1.5% in early Asian trading Thursday, trading around $29,470. Daily trading volume surged by about 23% to about $13 billion, suggesting that Bitcoin’s potential value could retest resistance between $31,000 and $32,000 in the near future. However, achieving new highs in 2023 could be challenging due to various unfavorable factors, including the rise of altcoins, which have been growing in popularity and taking market share.
An important trend affecting Bitcoin’s dominance is the decline over the past five days, with a drop of about 49.77% on Thursday. As altcoins gain popularity, investors are diversifying their portfolios, which could hinder Bitcoin’s rapid rise.
Cryptocurrency analyst Captain Faibik conducted an in-depth Bitcoin price analysis, predicting that BTC shorts will eventually break out of the bear market rally and push the price towards the support area around $25,000. Although Captain Faibik expects Bitcoin to rebound to $32,000 before correcting on a longer time frame, he remains cautious, noting that a 15-20% correction could occur in the coming weeks.
Despite the pessimistic outlook, many analysts believe that the price of Bitcoin will not fall below $20,000 again, citing increased demand from institutional investors as a key factor supporting the value of the cryptocurrency. In addition, over the past twelve months, various jurisdictions have taken steps to establish more inclusive and supportive cryptocurrency regulatory frameworks, which may further boost investor confidence.
