Bitcoin's (CRYPTO: BTC) continued dominance over the crypto market is setting the stage for a potential rally to new highs, with traders eyeing $93,000 in the near term.
What Happened: In a podcast published on Tuesday, crypto analyst Benjamin Cowen emphasized that Bitcoin dominance is surging, breaking out of a multi-year wedge and currently sitting at 63.08%, or nearly 69% excluding stablecoins.
He argues that in an environment of quantitative tightening by the Federal Reserve, Bitcoin offers better risk-adjusted returns compared to altcoins.
"Every dollar in an altcoin is a dollar not in Bitcoin," Cowen warned, adding that altcoin valuations remain too high relative to BTC and may have further downside before any true alt season can begin.
Historically, altcoin rallies start from range lows in the alt/BTC ratio, which is still elevated, suggesting Bitcoin will remain the stronger bet until macro conditions shift, likely when the Fed pivots to easing.
Also Read: Bitcoin To Outperform Gold In Coming Months, Says Anthony Pompliano
What's Next: Crypto trader Bluntz Capital spotted an ABC pattern forming on Bitcoin's hourly chart, signalling a potential new bullish trend. He predicts a rally to above $88,000, with further upside open to speculation.
An ABC pattern implies the start of a new trend, retracement or pullback from an initial trend and continuation from there.
Trader Pump Truck believes Bitcoin is on track for $92,000–$93,000, with $90,000 acting as a likely short trap that could fuel a sharp squeeze higher.
If a dip comes first, he sees anything under $81,500 as a solid long and calls a drop below $78,000 "free money" with invalidation at local lows.
Interestingly, while he's bullish on BTC in the short term, he expects Ethereum and select altcoins to outperform Bitcoin percentage-wise during the next leg up possibly driving total crypto market cap toward $3.4 trillion.
He plans to shift into a more defensive posture once Bitcoin reclaims its 100-day moving average, unless momentum remains strong.
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