Bitcoin price made a surprise rise this week, rising from a key support area above $50,000 to $64,000 on Monday. This massive surge has changed both the short-term and long-term landscape of not only Bitcoin, but also other cryptocurrencies up to HODL, including Shiba Inu (SHIB), Dogecoin (DOGE), and XRP.
The ETF has been the biggest market driver since its approval in January. With a cumulative total net inflow of over $7.49 billion, demand for BTC is surging, driving Bitcoin price higher.
Although the rally was seen across the market, some altcoins like SHIB emerged as top gainers, gaining more than 50% in a week.
Investors will carefully assess Bitcoin's behavior over the next few days to determine the validity of the uptrend to $70,000 or a correction to accumulate liquidity for another major breakout.
1. Bitcoin (BTC)
The supply and demand landscape for Bitcoin continues to shift, driven by increasing ETF inflows. Additionally, investors prefer to hold on to their BTC in anticipation of a major breakout after the February halving.
The Bitcoin Halving, which halves miners' rewards every four years. The last halving took place in 2020, so the next event will take place around April 2024.
The halving not only gives Bitcoin its deflationary status, but also significantly reduces the amount of new coins added to the ecosystem. Remember that miner rewards will decrease to 3,125 BTC from the current 6.25 BTC.
It is this gradual decline in supply combined with increasing or flat demand that tends to drive the price of Bitcoin parabolically higher. The ETF is also expected to have a major impact on BTC due to increasing demand.
Bitcoin price prediction chart | Trading view
The $63,000 area represents a selling wall that must be weakened to allow gains above $64,000 (the red line on the chart). A break above would trigger more FOMO as market participants aim for a break above the all-time high followed by a rise above $70,000.
2. Shiba Inu (SHIB)
Like many cryptocurrencies in the market, Shiba Inu Coin also faced increasing uncertainty in January, resulting in a correction below the $0.00001 mark. The meme coin took liquidity to $0.0000082 – its 2024 low, followed by a steady consolidation above $0.000009 before the massive breakout to $0.00001467 this week.
A minor decline in the Moving Average Convergence Divergence (MACD) threatens to slow the uptrend. By encouraging traders to close their positions.
Shiba Inu Coin Price Chart | Trading view
However, this condition may not persist or persist considering that the Money Flow Index (RSI) is neutral and rolling upwards, indicating that liquidity is increasing for a further rise. Multiple four-hour closes below the yellow support line could see BTC fall to a retest of $60,000 before the uptrend resumes, supported by more buying pressure.
3. XRP
While the majority of major coins rose in lockstep with Bitcoin, XRP price showed fading bullish momentum this week. From the last swing low of $0.534, the coin price increased by 11% to the current trading price of $0.59.
The sixth largest cryptocurrency XRP has been experiencing a slow but steady recovery since last month under the influence of an ascending trend line. Dynamic support boosted the asset during minor dips and sustained the recovery to reach $0.59 at press time.
If buyers fail to stay above the broken trendline, XRP price could fall back to the lower trendline to regain strength. Until the rising support is intact, traders can continue the ongoing recovery trend.
4. Dogecoin (DOGE)
The cryptocurrency market saw an aggressive uptrend in late February as massive inflows from the spot ETF drove the underlying asset BTC higher. In parallel with the Bitcoin price rise, altcoins continued their recovery trend, including Dogecoin, which rose from $0.082 to $0.1, registering a growth of 48.5%. This swing represents a massive breakout from the long-awaited triangle pattern, indicating a significant shift in market dynamics.
An analysis of the daily time frame chart shows that Dogecoin price has been moving in a sideways trend over the past 22 months. This sideways movement, confined to two converging trendlines, suggests the formation of a symmetrical triangle pattern.
In theory, this chart pattern developed to indicate the remarkable period of consolidation, the outcome of which determined the dominant force in the market. Amid the recent crypto market rally, DOGE price gave a decisive breakout from the ceiling, signaling that buyers are regaining control of this asset.
Related Articles
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.