Bitcoin's Potential Rally Amid USD Dominance and Top Warning Signal

Bitcoin's Potential Rally Amid USD Dominance and Top Warning Signal

By: Eva Baxter

The crypto market's expectations for de-dollarization may be premature as the US dollar continues to be the preferred currency for international transactions in 2023. Meanwhile, Bitcoin displays what seems to be an early warning signal for a potential peak after reaching prices close to $50,000. Despite this, data suggests Bitcoin could see a significant rally prior to reaching the actual peak.

Driven in part by the enthusiasm for spot BTC ETFs, Bitcoin's price surged from around $15,000 to over $45,000 per coin - a 300% increase. Bitcoin's price briefly hit $49,000 following post-ETF approval, before facing rejection and falling back to $42,000 where it currently trades.

Notably, the 1W Fisher Transform indicator smoothed out price action and pointed towards a possible early 'top' signal after reaching a +6 standard deviation. This technical indicator has accurately predicted tops in 2019 and 2021, hinting that Bitcoin could be nearing a peak. Despite the warning signal, Bitcoin has historically shown potential to rally by another 83% to 122% after such an indication before the actual peak occurs.

If this pattern holds, BTC's price could potentially reach new all-time highs above $84,000 per coin. As institutional involvement in crypto markets grows with the active trading of spot ETFs, many are optimistic about Bitcoin's potential for further growth.

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