3 Scenarios for Bitcoin Dominance Rebound
Crypto analyst Benjamin Cowen outlines three scenarios that could boost Bitcoin dominance over altcoins: a bounce above the 20-week simple moving average (20W SMA), a drop toward the 50-week SMA causing deeper altcoin losses, and a prolonged sideways trade around the 20W SMA. Cowen expects Bitcoin dominance to bottom and start a late-cycle uptrend, signalling a rotation back into BTC rather than an altcoin season.
Trader Axel Bitblaze notes that historical September weakness may not repeat this year. With Ethereum ETF inflows and potential rate cuts ahead, Bitcoin could weather early headwinds. If history rhymes, we may see a "melt-up" with a strong Q4 rally.
Traders should monitor Bitcoin’s 20W SMA, ETF inflows into Ethereum, and shifts in Bitcoin dominance as key indicators for portfolio decisions.
Bullish
Cowen’s outlined scenarios—including a rebound above the 20-week SMA and ETF inflows into Ethereum—point to rising demand for Bitcoin relative to altcoins. Coupled with potential rate cuts and a historical Q4 rally pattern, these factors are bullish for BTC, likely driving its price higher as capital rotates back into Bitcoin in both the short and long term.