- Bitcoin has reclaimed vital levels, indicating market strength.
- While Bitcoin shows positive signs, altcoins still face resistance, possibly signalling a forthcoming buying opportunity.
- Crypto analysts foresee a short-term shakeout, suggesting a potential drop in altcoin prices before a continued rally.
Cryptocurrency analyst, Crypto Banter+, sees a potential Bitcoin trend reversal, citing the steady decline in the cryptocurrency’s hash rate as a key indicator. This pattern, similar to those observed after previous Bitcoin halving events, suggests that the current market downturn may be nearing its end.
The weekly closes, according to the analyst, were pretty good. There were more reds than greens, but the week had started strong and that surpassing the $60,000 mark was a significant milestone in the market.
Market events often trigger notable market responses, with significant price movements that can shift the direction of trends. A period of market fear and liquidations often indicates a potential turnaround, during which smart money will enter the market and drive prices up.
The Bitcoin Supertrend indicator is still optimistic, and the US Dollar Index’ (DXY) historical decline points to a rising trend for the cryptocurrency. Important resistance levels to watch include $63,000–$64,000, $67,000–$68,000, $72,000–$74,000, and $60,000–$61,000.
Source: Coindesk
The crypto analyst discussed indicators like the stochastic, noting previous traps where the market turned bullish briefly before retracing. Stochastic indicators help gauge market sentiment by assessing fear and greed levels, making identifying ideal times to enter into altcoin positions easier.
By categorizing tokens based on risk levels such as low, medium, high, and very high risk, investors can strategically adjust their portfolios as market sentiment fluctuates. The analyst highlights selected altcoins, such as ALT USDT, Acro, PPops, and Bonk, which exhibit promising movements based on pivot grid analysis.
While the overall market sentiment remains cautiously optimistic, the confluence of technical indicators, the “smart money” theory, and a potential altcoin surge suggests that Bitcoin and the broader crypto market may be gearing up for a significant upswing.
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