Two weeks ago, few investors had expected Bitcoin (BTC) prize to collect higher than $ 20,000. In fact, most had predicted a BTC price of $ 30,000 by mid-2022 or at best the end of 2023.

This means that many holders were likely caught off guard when the BTC price rose to $ 34,800 just 17 days after crossing the $ 20,000 mark.

Overall, analysts expect a sharp correction after Bitcoin’s 150% gains since November, but currently there are no fundamental indicators to support this view.

BTC / USD 4-hour chart. Source: TradingView

Despite the recent bullish euphoria surrounding Bitcoin’s price action, the digital asset fell significantly as the price fell USD 5,600 in 3 hours. More than $ 1.2 billion in liquidations followed that red candle, and typically this kind of move would raise the alarm and lead analysts to predict a possible trend reversal.

Every time Bitcoin makes a new high, investors expect some form of correction. Despite failing to break the USD 34,500 resistance, the price quickly bounced off the below USD 28,000 dip on January 4. This event may have spooked some buyers money, but if you look under the hood, it’s a very optimistic sign.

In the past week, Bitcoin’s dominance rose to its highest level since March 2017, reaching 73%. Significant buying activity from institutional investors is associated with the movement, including Grayscale addition of 72,950 BTC in December.

In addition, investments from MicroStrategy, Ruffer Investment, MassMutual and SkyBridge Capital are further indisputable evidence of the institutional influx. Thus BTC becomes their favorite and almost exclusive investment option among cryptocurrencies.

Bitcoin’s decline in dominance triggered a mini altcoin season

Regardless of the moves of professional traders, retailers have a huge impact on altcoins. Hence, the Bitcoin rally created an alt season opportunity and DeFi-related tokens seem to benefit the most.

Weekly performance of the best cryptocurrencies. Source: Nomics

In the past week, Bitcoin outperformed the top 15 altcoins, which rose 9% on average. More importantly, the overall volume has skyrocketed, dispelling any doubts about weekends or low-market holiday pumps.