Veteran trader Peter Brandt believes that Bitcoin dominance is hinting at a breakout as he spots a unique range pattern on the chart.
This might cause Bitcoin to outperform altcoins, which refer to alternative cryptocurrencies other than Bitcoin.
The Bitcoin % Dominance chart has now formed a 24-month rectangle with multiple upper and lower boundary contacts. For now this is the confining range. However, a decisive breakout of this range would have huge significance. My bias is that Bitcoin will bury all pretenders $BTC.… pic.twitter.com/KCS9Pt5dMx— Peter Brandt (@PeterLBrandt) April 29, 2023
Brandt notes that the Bitcoin dominance chart has formed a 24-month rectangle with multiple upper and lower boundary contacts.
This is because the Bitcoin dominance metric has oscillated in a range between 38% and 48% for over two years. Brandt believes that for now, this remains a confining range. However, a decisive breakout of this range would have huge significance, he added.
Predicting that Bitcoin would outperform alternative cryptocurrencies, he wrote, "My bias is that Bitcoin will bury all pretenders. Eventually there will be only one 'King of the Hill,' and it will be Bitcoin."
According to data from TradingView, the Bitcoin dominance rate, which is its market value's share of the total crypto market, reached a 10-month high of 48.90% on April 12 before declining.
At the time of writing, Bitcoin dominance was 48.50%, nearing highs last seen in June 2022.
Wu Blockchain reports that the number of transactions on the Bitcoin blockchain reached a record high of 426,337 on April 29. This might be related to the demand for Bitcoin ordinal inscriptions. On April 29, the number of Bitcoin inscriptions minted in a single day exceeded 20,000 for the first time, setting a new high.
On-chain analytics firm IntoTheBlock reports that the seven-day average of daily Bitcoin transactions was at its highest this week since December 2017. The increasing number of daily transactions suggests growing active usage of the Bitcoin blockchain, IntoTheBlock researchers wrote.
Meanwhile, Bitcoin is now about a year away from its halving event. On-chain analytics firm Glassnode notes that Bitcoin block 787,500 will be mined shortly, which means the halving event is about a year away. Bitcoin halving events are autonomous and preprogrammed every 210,000 blocks.
Glassnode added that a 14-day average of mean block time estimates that we are 367 days away from the next halving event, given that hash rate is volatile and finding blocks is probabilistic. This gives the estimated date as April 30, 2024.