Bitcoin 7-month high 'dominance' has BTC price eyeing $25K — Will Ethereum spoil the rally?

cointelegraph.com:

Bitcoin (BTC) is rapidly regaining its lost dominance in the crypto market so far into 2023.

On Jan. 30, Bitcoin accounted for 44.82% of the total crypto market capitalization, the highest since June 2022. In September 2022, Bitcoin's dominance index was as low as 38.84%.

The index typically rises when most crypto investors reduce their exposure to smaller tokens and seek safety in Bitcoin. The reasons include Bitcoin's better liquidity and lower volatility than alternative cryptocurrencies, or altcoins, primarily in a bear market.

As of Jan. 31, Bitcoin is up 38% year-to-date (YTD) at around $23,000. In comparison, the second-largest cryptocurrency, Ether (ETH), gained 30% in the same period, showing most investors remain gravitated toward Bitcoin so far in 2023.

From a technical perspective, the Bitcoin dominance index may rise further in the coming weeks as it reclaims its 50-week exponential moving average (50-day EMA; the red wave in the chart below) as support.

In doing so, the index could rise toward 48.5%, which has acted as resistance since May 2021. 

On the other hand, independent market analyst Rekt Capital sees the Bitcoin dominance index rising toward 46%, which coincides with the upper trendline of a giant descending channel pattern, as shown in the monthly-timeframe chart below. 

The short-term bullish scenario in the Bitcoin dominance index chart appears in line with a similar upside in the spot Bitcoin market, with bulls eyeing a run-up toward $25,000.

The strength of #bitcoin on the 4-hour charts continues to be impressive.While price action has trended sideways for over a week, short term indicators (MACD, RSI) have once again reset... and are now ramping higher.A price surge to ~$25k is probable.(Not