Crypto analyst Master Kenobi has weighed in on Bitcoin’s recent price volatility and what it could mean for the altcoin market. His analysis suggests some interesting possibilities.
Bitcoin Dominance: A Volatile Future?
Kenobi’s analysis points to a faster-than-expected drop in Bitcoin’s dominance. While he initially predicted a decline starting recently, it actually began 20 days earlier. He notes that three consecutive weeks of Bitcoin price drops have created a volatile period that could last a while – potentially mirroring a similar 136-day period from the past. If history repeats, this volatility might not end until April 6th, 2024.
This volatility, according to Kenobi, marks the crucial first stage of capital moving away
from Bitcoin and into other cryptocurrencies. He predicts a significant drop in Bitcoin dominance after this period, signaling the start of “altcoin season.” Even if the overall bull market extends beyond April 6th, this period is likely to be a boom time for many altcoins.
Kenobi points to a similar pattern in 2021, where Bitcoin dominance bottomed out on May 14th, coinciding with a market peak. He anticipates a similar scenario this time, though the bottom might arrive earlier, perhaps in early March.
The Bitcoin Halving Factor
Kenobi also looked at the Bitcoin halving event to support his predictions. He observed that in the previous cycle, the bottom in Bitcoin dominance was just four days after the one-year anniversary of the halving. Applying this to the current cycle, the peak of the market (and the bottom of Bitcoin dominance) could potentially extend to April 20th-23rd, 2025. However, he cautions that pinpointing the exact date is currently impossible. As more data becomes available, he expects to refine his prediction for the end of the bull market’s first phase.
Current Market Snapshot
At the time of writing, Bitcoin is trading around $100,300, down slightly in the last 24 hours, with its market dominance at 55.13% (according to CoinMarketCap).
