As an experienced analyst, I believe that the recent bullish momentum in the cryptocurrency market is a positive sign for potential buyers looking to enter long positions. The significant inflows into Bitcoin ETFs and the renewed buying interest in both Bitcoin and altcoins suggest that investors are confident in the market’s recovery.
The cryptocurrency market has seen a resurgence of buying activity since Thursday, resulting in a Bitcoin price surge from $56,500 to $63,169 – a 6% increase within a day. This bullish trend also positively impacted the altcoin sector, with Ethereum (ETH) and Solana (SOL) rising by 4%, Toncoin (TON) and Avalanche (AVAX) recording gains of 5-7%, and meme coins Dogecoin and Shiba Inu exhibiting double-digit percentage growth.
The surge in purchases can be explained by the absence of resistance at the $60000 level following its breakdown and the significant flow into the Bitcoin spot ETF.
On May 3, 2024, the Bitcoin Exchange-Traded Fund (ETF) market experienced a substantial surge, reporting a net inflow of approximately $343 million following a week of decreases, as indicated by SpotOnChain’s data. Notably, Grayscale Bitcoin Trust (GBTC) reported its largest single-day inflow ever, totaling $63.0112 million. Among the top contributors to this growth, Fidelity Wise Origin Bitcoin Fund received $102.6 million in investments, while BlackRock iShares Bitcoin Trust recorded a more restrained $13 million in inflows. This increase may signify renewed investor faith or strategic buying tendencies within the Bitcoin ETF market.
$BTC #ETF Net Inflow May 3, 2024: +$343M!
• #Grayscale Bitcoin Trust $GBTC experienced the first single-day inflow since its inception.
• The net inflow turned positive after being negative for 7 consecutive trading days.
• 8/10 #BitcoinETFs experienced inflows, led by…
— Spot On Chain (@spotonchain) May 4, 2024
As the relief rally continues to pick up steam for a lasting restoration, prospective investors may consider exploring fresh long positions in prominent cryptocurrencies such as Ethereum (ETH), Cardano (ADA), and Shiba Inu (SHIB).
1)Ethereum (ETH)
Ethereum functions as a decentralized platform for creating and launching smart contracts and decentralized apps (dApps), placing it as the second largest cryptocurrency with a market capitalization of $373.5 billion.
For the past three weeks, the Ether price has moved back and forth between two stable levels at $3282 and $2870. With renewed market enthusiasm, ETH has surged 11.9% from its low to now rest at $3149.
The trading volume for this asset is currently hovering around $11.9 billion, which represents a modest decrease of 3.5%. This suggests that the asset has not yet gained enough bullish momentum. In order for buyers to gain more control over the coin, they must break free from the wedge pattern’s range (represented by two blue trendlines).
A successful breakout will intensify the ETH price potential to rechallenge the $4090 top.
2) Cardano (ADA)
Cardano, represented by the symbol ADA, is a blockchain system constructed with a focus on durability and capacity for growth, guided by extensive research. The market correction of ADA’s price has identified a solid base at approximately $0.42.
The value of Cardano’s altcoin has experienced a significant surge, rising by 13.5% in just four days and now trading at $0.47. According to Coinmarketcap, this growth has led to an increased market capitalization for Cardano, which now stands at $18.9 billion. The altcoin’s 24-hour trading volume is reported as $293.5 million.
A closer look at the day-to-day price chart reveals the emergence of a bullish reversal formation known as a Double bottom for Cardano. With this pattern influencing the market, there’s a strong possibility that the Cardano price will surpass its previous swing high resistance at $0.52, indicating a significant shift in market trends.
As a crypto investor, I believe the post-breakout rally could offer an opportunity for me to pursue potential gains. The first target I have in mind is at $0.62. If this level is breached, I would then consider setting my sights on $0.684 as the next objective. Ultimately, my long-term goal would be to reach $0.81.
3) Shiba Inu (SHIB)
As a crypto investor, I’d describe Shiba Inu (SHIB) as a fun and lighthearted digital currency that emerged as a jovial spin-off from Dogecoin, featuring the beloved Shiba Inu dog breed as its emblem. Over the past three weeks, SHIB’s price has demonstrated impressive resilience, hovering above $0.000002. This stability can be attributed, in part, to the gentle upward slope of its 100-day Exponential Moving Average (EMA).
The alignment of two factors – the market’s bounce-back and strong buying interest – has pushed up this memecoin’s value by an impressive 23% to its current price of $0.00000254. Moreover, an extraordinary increase of over 1000% in Shiba Inu’s burn rate within the last day has significantly fueled this upward trend. Approximately 29 million SHIB tokens have been eliminated from circulation during this period.
If investors continue purchasing the coins at a consistent rate, they may be able to surpass the current resistance level of $0.000028. Reaching this milestone could pave the way for further gains, potentially leading to a price target of $0.00003285, followed by $0.000038.
Key Takeaway
As an analyst, I’ve observed that with Bitcoin’s price bouncing back above $60000, the cryptocurrency market has regained momentum and initiated a new relief rally. This rebound is also evident in the altcoin sector, suggesting its capability to recover lost ground. With market players expecting a post-halving rally imminently, this potential reversal from the previous correction trend could present enticing dip buying opportunities for investors.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD COP PREDICTION
- BICO PREDICTION. BICO cryptocurrency
- USD ZAR PREDICTION
- USD PHP PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- USD CLP PREDICTION
- NAKA PREDICTION. NAKA cryptocurrency
2024-05-04 15:06