As a seasoned crypto investor, I’ve seen my fair share of market volatility and trends. The current situation with Bitcoin (BTC) and other altcoins is no exception, and I believe it’s crucial to approach this market with caution and an informed perspective.
As an analyst, I’ve been closely monitoring the cryptocurrency market this week, and I must admit, the volatility we’ve seen has made prediction a challenging task. The Bitcoin price hovering around $60,000 shows no clear signal of a bull or bear market initiation. This sideways action in Bitcoin has given a boost to several top altcoins, allowing them to begin recovering. However, the buying momentum is not yet strong enough to sustain their growth.
According to Santiment’s analysis, Bitcoin’s on-chain activity has seen a substantial decrease, marking the lowest levels since 2019. This observation comes despite Bitcoin reaching an all-time high two months prior. The reduction in transaction volumes and active addresses suggests that traders are experiencing heightened fear and uncertainty, rather than indicating impending price drops.
As an analyst, I’ve noticed that Bitcoin’s on-chain activity is approaching historic lows, indicating a significant decrease in transactions over the past two months since its all-time high. This trend doesn’t automatically mean we’ll see more Bitcoin dips, but rather it reflects fear and uncertainty among traders.
— Santiment (@santimentfeed) May 11, 2024
As an analyst, I’ve been closely monitoring the latest data on cryptocurrency transactions and active addresses. The numbers paint a clear picture: there’s been a noticeable decline in both metrics recently. Furthermore, the frequency of whale transactions – large-scale investments made by big players – has reached its lowest point since late 2018. This trend suggests that even large-scale investors are treading cautiously in the current market climate, which is shrouded in uncertainty.
1) Bitcoin (BTC)
Bitcoin (BTC), the pioneering digital currency, predominantly serves as a decentralized, electronic money system and a valuable asset. It runs on a secure, distributed ledger called blockchain, which relies on the proof-of-work (PoW) consensus algorithm for verification, ensuring it’s resilient against censorship and deceit.
The formation of a wedge pattern in Bitcoin’s price correction can be observed by following two converging trendlines. However, with the substantial selling pressure above, buyers find it difficult to push for a lasting rebound and instead hover around $60,000.
At the present moment, Bitcoin boasts a market capitalization of approximately $1.2 trillion, while its daily trading volume hovers around $13 billion.
If the price of an asset manages to surpass the resistance level of the wedge pattern, it would be a significant development for bulls looking to exit the recent downtrend. This potential breach could serve as a strong indication to fuel a bounce-back rally towards a peak of $73,700.
2) Toncoin (TON)
The Open Network (TON) is home to its indigenous digital currency, Toncoin (TON). Originally spearheaded by Telegram, this project is now overseen by an autonomous community. TON aspires to boost the scalability and accessibility of blockchain technology, enabling swift and affordable transactions through high-speed and low-cost processing.
Bucking the current trend, the price of TON has experienced a significant surge since May’s beginning. In just two weeks, the coin’s value climbed from $2.48 to $7.047, representing a notable gain of 53.16%. The market capitalization of Toncoin followed suit, reaching an impressive $24.4 billion and securing its place as the cryptocurrency with the eighth-largest market cap.
As a researcher studying the cryptocurrency market, I believe that the price of TON may surpass its previous resistance level of $7.67 with sustainable buying, acting as a solid foundation for further upward momentum. According to traditional pivot points, potential selling pressure could emerge around the psychological levels of $9 and $10 in the post-breakout rally.
If the altcoin encounters increased selling pressure around $7.67, its upward price movement may shift into a more horizontal trend.
3) Shiba Inu (SHIB)
Shiba Inu (SHIB) is a playful cryptocurrency project that started as an exploration of decentralized community development through spontaneous means. Originally inspired by Dogecoin, SHIB has gained popularity due to its large and passionate fanbase, known as the “Shib Army.”
In the daily price chart, Shiba Inu coin displays an illustrative instance of a symmetrical triangle pattern as its value fluctuates between two converging trendlines. At present, this popular meme cryptocurrency is trading at a price of $0.0000225 and boasts a market capitalization of $13.27 Billion.
To ignite a surge in buying activity for SHIB, it’s essential that the price breaks above its current trendline resistance. A strong and successful breach of this level could propel the coin up to $0.00003285, with further potential gains at $0.0000456.
Key Takeaway
The sustained Bitcoin price level above $60000 is intensifying the apprehension among market players. At the same time, the supply side is experiencing a prolonged decrease, forming a wedge pattern. Nevertheless, if this pattern persists, the Bitcoin price could be undergoing a brief correction, which historically precedes a robust upward trend.
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2024-05-12 16:31