As a long-term crypto investor with experience in the market since its early days, I’m cautiously optimistic about the current market situation. The recent rebound in the total cryptocurrency market cap above $2.4 trillion and the potential listing of spot Ethereum ETFs in the US have fueled a wave of altcoin speculation, which has weighed on Bitcoin holders.
As a market analyst, I’ve observed that the total value of all cryptocurrencies bounced back above $2.4 trillion on Friday. This recovery came as Bitcoin‘s price stabilized above $61,000. However, the heightened anticipation surrounding the upcoming listing of spot Ethereum (ETH) Exchange Traded Funds (ETFs) in the US has put pressure on Bitcoin investors, leading to increased interest and speculation in altcoins.
Additionally, there’s growing interest among institutional investors, with VanEck at the forefront filing for an ETF on Thursdays, to expand their cryptocurrency holdings beyond Bitcoin and explore opportunities in the altcoin sector. This trend could potentially signal a shift in market dynamics, leading to a decrease in Bitcoin’s dominance and the long-awaited rise of the altcoin market.
Crucial Bitcoin Price Level to Watch in Case of Capitulation
Over the last four days, I’ve noticed Bitcoin’s price lingering near the bottom of its horizontal macro channel. Following a brief dip beneath $59,000 earlier in the week, Bitcoin has since stabilized above $61,000. However, there isn’t yet any discernible trend or direction for the price to follow.
After bouncing back from a $60,000 setback over the past four months, Bitcoin’s price is primed for a potential surge towards $66,000 in the upcoming weeks. Additionally, the number of Bitcoin addresses in profit has significantly decreased as the daily Relative Strength Index (RSI) remains close to the oversold threshold.
Based on the findings from CryptoQuant’s on-chain data analysis, Bitcoin’s price may surge towards a new peak due to decreased miner selling pressure.
As a researcher studying the cryptocurrency market, I’ve observed that mining sell pressure is decreasing. If this selling volume is fully absorbed by the market, it could lead to a scenario where the price surge resumes once more. According to CryptoQuant’s analysis.
According to CryptoQuant’s analysis, traders in the cryptocurrency market should exercise caution if the price of Bitcoin dips and consistently closes below $56,000. This warning is derived from the Metcalfe Price Valuation Bands used by CryptoQuant, which indicates that a significant sell-off or crypto market crash could ensue if the Bitcoin price falls beneath this level.
Reaching a price of $56,000 is a significant milestone for Bitcoin. Dropping beneath this point might trigger a substantial price decrease.
— CryptoQuant.com (@cryptoquant_com) June 28, 2024
Bigger Picture
The cryptocurrency market has been stuck in a holding pattern due to heightened mid-term skepticism. Over two months after the fourth Bitcoin halving event, Bitcoin’s price has yet to exhibit the typical explosive growth.
Based on historical trends analyzed by cryptocurrency expert Mags on the X platform, it’s predicted that Bitcoin’s price could reach $200,000 within the upcoming quarters.
#Bitcoin has topped out ? 🤔
It’s typical after each Bitcoin halving for the price to experience a decline or a period of stability before rising again. Historically, these price drops have presented opportunities for investors to purchase Bitcoin at relatively lower prices.
Many people confuse this with distribution or a cycle top and end up selling early or…
— Mags (@thescalpingpro) June 28, 2024
According to Coinspeaker’s latest report, there has been an uptick in Bitcoin purchases by US-based spot ETFs following a lengthy spell of selling pressure. The increased appetite for Bitcoin and other digital currencies among institutional investors and individual traders is expected to persist given the questionable monetary policies adopted by many central banks.
The forthcoming US elections could fuel optimistic attitudes towards cryptocurrencies. Furthermore, projected reductions in US interest rates may entice more investors to buy Bitcoin and other cryptocurrencies during this extended bull market.
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2024-06-28 17:30