As a seasoned financial analyst with a background in cryptocurrency and traditional markets, I have witnessed numerous market shifts over the years. The sudden negative sentiment that emerged in the cryptocurrency market last Thursday was not an unfamiliar sight to me.
The cryptocurrency market experienced a significant change in sentiment on Thursday, as the prices of Bitcoin, Ethereum, and XRP surged. However, this positive trend was short-lived, as other major altcoins retreated from their recent dips. For a brief moment, this suggested a potential shift towards a prolonged bullish trend.
Market Overview
On Wednesday, Bitcoin’s price reached $65,000 before experiencing a 1.25% correction to $63,680 the following day. The decrease in price was accompanied by a 20% reduction in trading volume, indicating waning investor interest. This decline in price was evident in the market capitalization, which dropped to $1.255 trillion according to CoinMarketCap statistics.
The price of Ethereum encountered hurdles at the $3,500 mark, causing it to halt its upward trend. During American trading hours, Ethereum was valued at $3,397 – representing a minimal decrease of 0.25% compared to the previous day.
Among the three coins, XRP experienced the most significant decline of 6%, despite a remarkable weekly price increase. To regain momentum and continue the uptrend, XRP needs strong backing at around $0.55 as its new support level.
Bitcoin Price Analysis As BTC Flips STHs Average Cost Basis
Multiple reasons contributed to Bitcoin’s surge to $65,000. Among them were less severe US inflation figures and the German government exhausting its Bitcoins for sale. Noteworthy, Mt. GOX creditors have predominantly opted to keep their BTC instead of cashing out, potentially anticipating further price growth.
The ongoing price adjustment might be a beneficial pullback, providing an opportunity for new purchases prior to the continuation of the rally towards $70,000. As long as Bitcoin maintains its support at around $60,000 during this week, the likelihood of resuming the uptrend will substantially grow.
Based on data from a CryptoQuant chart focusing on short-term holders (STHs), the price trend of Bitcoin suggests it is poised for continued growth. As the Bitcoin price surpasses the STH Realized Price, short-term investors are likely to increase their holdings, thereby bolstering underlying support.
Since the beginning of 2023, Bitcoin’s price has bounced back above its realized price according to STH twice. This event resulted in a roughly 30% return on investment for Bitcoin holders.
Ethereum Price Stalls After Bottoming Out
According to Ethereum price forecasts, the bulls are putting in significant effort to defend the support level at $3,400. The optimistic perspective is reinforced by favorable sentiment and technical signals, implying that the upward trend will persist and lead to new peaks surpassing $4,000.
In simpler terms, the MACD indicator is indicating a bullish trend with a buy signal, while the 20-day and 50-day moving averages are suggesting the formation of a “golden cross.” This means that the 20-day moving average is rising above the 50-day moving average, which is often seen as a bullish signal in technical analysis.
Traders are unlikely to prioritize selling Ethereum before next week’s anticipated approval of 10 Ethereum-based spot ETFs by the Securities and Exchange Commission (SEC). The approval is believed to fuel increased demand for ETH, leading to a potential surge toward the $5,000 price point.
XRP Price Analysis: Can Bulls Secure Support?
The focus is intensely on the bulls to prevent further decline, as XRP‘s price attempts to find footing around $0.5. Dropping beneath this significant mark might lead to a surge in selling actions from concerned investors aiming to safeguard their assets.
As a crypto investor, I’ve been closely monitoring XRP‘s price action lately. The bullish trend is supported by technical indicators, specifically the Moving Average Convergence Divergence (MACD) and the moving averages. The MACD line has crossed above the signal line, forming a buy signal, while the 20-day Exponential Moving Average (EMA) recently surpassed the 50-day EMA, resulting in a golden cross. These indicators suggest that XRP could continue its upward momentum.
A swift bounce back to regain $0.6 will strengthen the ongoing rally, signaling the bulls’ resurgence. According to current XRP price analysis, investors should be aware of potential resistance levels at $0.65 and $0.7 before the market prepares for a surge towards $1.
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2024-07-18 21:22