In the crypto world, recent economic data causing inflation concerns led to a downturn in the market. The core personal consumption expenditures (PCE) price index surprised with a 2.8% year-over-year increase in March, fueling speculation about the Federal Reserve’s interest rates. Bitcoin, the trailblazer of cryptocurrencies, felt the heat and dropped from $67,000 to $63,352 for a 5% decrease.
The cryptocurrency market has undergone a slump in recent times due to the unexpectedly high inflation data release, causing apprehension among investors regarding the economy’s future health. As reported by CNBC, the core personal consumption expenditures (PCE) price index, which excludes food and energy costs, increased by 2.8% year-on-year in March, matching February’s figures but slightly surpassing anticipations.
A fresh report joining a string of disappointing inflation announcements has sparked conjecture that the Federal Reserve could hold off on raising interest rates.
Over the weekend, the price of Bitcoin has been relatively stable, leading to sideways movement in the majority of other major cryptocurrencies. This indicates a lack of significant buying or selling pressure from market participants. However, many see the current market consolidation as a chance for digital coins to regain their footing before the expected post-halving price surge.
1)Bitcoin (BTC)
As a researcher exploring the world of digital currencies, I’m constantly amazed by the groundbreaking innovation that is Bitcoin. What sets it apart from other contenders in the market is its revolutionary blockchain technology. This game-changing feature empowers users to engage in financial transactions that are not only decentralized but also secure, without the necessity of relying on a central authority.
This week, Bitcoin experienced significant selling activity, causing its price to decrease from $67,000 to $63,352, representing a 5% loss. The dominant cryptocurrency boasts a market capitalization of $1.25 trillion, and its trading volume in the last 24 hours amounts to $18 billion.
Should the downtrend for Bitcoin continue, it’s possible that the price will drop by an additional 5.2%, reaching the support line of the triangle chart formation at around $60,000.
For the past two months, this technical arrangement has resulted in a merging of two trendlines, causing a consolidation pattern. If the bottom support remains strong, Bitcoin’s price may initiate a fresh surge towards the resistance level at $71,200.
2) Optimism (OP)
As a crypto investor, I’m excited about Optimism (OP), a scaling solution designed to boost Ethereum‘s capacity and lower transaction costs using layer-2 technology called optimistic rollups. With this innovation, I can expect faster and more affordable transactions while still benefiting from the robust security of the Ethereum mainnet.
For the past seven weeks, the OP‘s market price exhibited a consistent decline due to a descending trendline. This bearish trend caused the altcoin’s value to plummet from $4.85 to $1.8, resulting in a significant loss of approximately 63%.
Despite the reversal in altcoin prices to $2.64 following the halving event, Optimism coin presently boasts a market capitalization of $2.7 billion. Notably, there has been an impressive surge in trading volume, reaching $427.2 billion since yesterday.
The latest rise in price has gone beyond the previously mentioned trendline, indicating the conclusion of the previous downtrend. Following this breakthrough, the cryptocurrency’s value might experience a significant increase, potentially reaching $4.
3) Shiba Inu (SHIB)
As an analyst, I would describe Shiba Inu (SHIB) as a meme coin with decentralized and community-driven origins that bears resemblance to Dogecoin. Over the past week, SHIB’s trading has remained range-bound between two distinct horizontal levels: $0.000028 and $0.000023.
A daily chart showing small price ranges between peaks and troughs with long wicks signifies an equal struggle between buyers and sellers, suggesting no clear dominance in the market. At the time of publication, Shiba Inu’s coin boasts a market capitalization of $14.4 billion and a trading volume of $361.2 million.
As a crypto investor, if the SHIB price reaches a supportive level around $0.000023, I believe we’ll see the formation of the first higher low, which is an early indication of a potential recovery. However, this bullish trend may encounter resistance at the overhead supplies located at $0.000028 and $0.00002385.
Takeaway
The cryptocurrency market is currently undergoing consolidation after the halving event, as indicated by Bitcoin’s stable price without a clear upward or downward trend. The altcoin market is exhibiting similar behavior, creating buying opportunities for investors who have been sitting on the sidelines during the bull run.
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2024-04-29 10:17