Bitcoin is reclaiming its dominance but there’s a catch
Right now, all eyes are on Bitcoin. After bouncing back from the chaos post-FOMC, BTC is creeping closer to the $100K mark, currently trading at $97K (as of writing).
But don’t expect a smooth ride – challenges still loom ahead. While Bitcoin dominance has climbed to 59%, that doesn’t guarantee a bullish run. On the psychological front, BTC still faces hurdles.
For one, the greed index has dipped back to early November levels. A small pullback could push it into the “fear” zone, signaling caution among traders – a logical move after the recent dump.
Secondly, short-sellers are reaping rewards by betting against BTC, a strategy as rewarding as buying at the bottom and selling at the top of the cycle.
These factors combined suggest that while BTC’s current price may look enticing, the cautious mood among investors points to a likely consolidation phase ahead.
Meanwhile, the altcoin market has been thriving in Bitcoin’s recovery, leading the charge in the top gainers’ chart. If this trend continues, most altcoins could be poised for a massive leg-up.
