Bitcoin price assessment: The cryptocurrency market shows a tranquil scene on Tuesday just before the US trading hours begin. Following its halving, Bitcoin, the leading digital currency, experienced a sudden surge but failed to sustain gains above the $67,000 mark.
Many individuals in the cryptocurrency market may find it essential to note that Bitcoin (BTC) appears uncertain, causing major altcoins such as Ethereum (ETH) and Solana (SOL) to fluctuate within narrow boundaries.
Ethereum, for instance, steadied above $3,000 but currently pivots around the $3,200 mark. A similar outlook is depicted by Solana which climbed above $150, following the correction to $120, but failed to break above the hurdle at $160.
During US business hours, the prices for the competing cryptocurrency tokens ETH and SOL stand at $3,184 and $154 respectively in competitive markets.
1. Bitcoin Price Analysis: Assessing BTC’s Future Above $66,000 Support
At present, Bitcoin’s price remains above $66,000, yet it appears uncertain and indecisive, indicating a difficulty in establishing an upward or downward trend.
The purple line on the chart, which represents the 200-day Exponential Moving Average (EMA), serves as the next significant support for the price level below $66,000. Just beneath it are two other essential moving averages – the 20-day EMA and the 50-day EMA, denoted by the blue and red lines on the chart respectively.
In simple terms, the RSI indicator for Bitcoin hovers around 58, suggesting a neutral stance. This means that bulls may face challenges in pushing for a significant price increase in the near term. Nevertheless, sellers have limited control over the market, as investors are expected to keep their coins, hoping for a surge following the upcoming halving event.
The price of Bitcoin has shown robust foundations, implying a potential parabolic surge in 2024 and 2025 based on historical trends following the halving event. As depicted in a chart posted by @ali_charts, Bitcoin’s circulating supply dropped to around 4.6 million for the first time, just prior to the most recent halving period.
Before the most recent Bitcoin halving event, the amount of Bitcoin in circulation dropped below 4.6 million BTC for the first time.
What’s the significance of this event? The reduction in miner rewards for producing new bitcoins leads to a faster decrease in their availability, making the digital currency increasingly scarce. With the current supply shrinking and assuming demand stays consistent, here’s what could ensue:
— Ali (@ali_charts) April 22, 2024
After being reduced by half to 3.125 BTC, miners’ rewards are anticipated to continue decreasing Bitcoin’s supply. This inherent trait, where supply diminishes while demand stays steady or grows, has the potential to significantly influence Bitcoin’s price.
Reaching prices above $68,000 and $70,000 could cause fear of missing out (FOMO) among investors, potentially paving the way for a new record high, aiming for $80,000 in the near future, and setting sights on $100,000 by the end of the year.
2. Ethereum Price Hangs At The Edge Of A Cliff
Just like Bitcoin, Ethereum seems stuck around $3,250, which serves as a significant resistance point for it. Conversely, the fluctuation around $3,200 indicates uncertainty and a lack of clear direction in Ethereum’s price movement.
At the current price of $3,160, the intersection of the 20-day and 50-day moving averages acts as a barrier to prevent significant price drops.
With the RSI no longer indicating a clear trend and moving back towards the neutral zone of 50 and the oversold territory below 30, there’s a possibility that selling pressure could resume, potentially leading to further declines towards $3,000 by the end of the week.
Last week, the cost of Ethereum approached the $2,900 mark as tensions lessened between Israel and Iran in the Middle East. However, it’s important to note that this trend could still continue, given that the expiration dates for Bitcoin and Ether options are approaching.
If Ethereum manages to surpass the yellow resistance line or the 200-day moving average, it could lead to further increases in Ethereum’s price and potentially reach new highs above $4,000.
3. Solana Price As Correction Lingers
On the four-hour chart, the Money Flow Index (MFI) for Solana has reversed direction, potentially signaling an upcoming correction in its price. The price has been unable to rise significantly above the previous day’s opening price of $157 and is slightly higher than the 200-day moving average.
It is worth noting that, the presence of the above resistance levels does not imply immediate losses in SOL. Traders should be aware of the 20-day EMA and the 50-day EMA catching up to Solana price and aligning to support and prevent correction below the $150 level.
If the MFI (Money Flow Index) reaches a stable level of 60, and buyers start purchasing more long positions in SOL (Solana), there’s a good chance that the price will rebound during the American trading hours and potentially rise further during Wednesday’s Asian session, surpassing the $160 mark for the first time.
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2024-04-23 17:18