Why Did the Bitcoin Price Rise Today? Did the Traders Swap their Alts for BTC?
The value of Bitcoin is increasing! And now is the time to shell the bears, as the largest bear trap in history has recently been completed. The price of Ethereum (ETH) is approaching $1700, the prices of Cardano (ADA) and Ripple (XRP) have risen above $0.4, and the price of Litecoin (LTC) has risen above $100. It appears that the bulls have completely taken over the rally at the moment. It also indicates that the traders have swapped all their altcoins back to BTC to pump the prices harder.
The above chart validates the claim, as the alt/BTC pairs are bleeding heavily. It indicates that most of them were swapped for Bitcoin. As a result, there is a chance that they will take their profits and return to Alt/BTC pairs that are nearing their interim bottoms. Therefore, a close watch on the volume needs to be maintained as the trend is believed to flip at any moment.
Moreover, whales have been accumulating BTC ever since the bear market was confirmed in 2022. After halting the accumulation of BTC during Q4 2022, the whales appear to have again started to do so. Therefore, it is important to follow the whale movements, including the trading volume.
The altcoin dominance, which had been rising significantly in January, experienced multiple hurdles in February, fluttering between pre-determined resistance and support levels. While the market dominance of Bitcoin is rising, the altcoins’ dominance began to shrink. The levels have surged beyond 44.8% while the altcoin dominance is 11.49% at the press time. The recent flip in their respective trends points to the possibility of a continued BTC price rally in the coming days.