Bitcoin price made a surprising move this week, jumping from a key support area above $50,000 on Monday to $64,000. This massive rally has changed the short-term and long-term landscape of not only Bitcoin, but other cryptocurrencies such as Shiba Inu (SHIB), Dogecoin (DOGE), and XRP to his HODL.
This ETF happens to be the biggest market mover since its approval in January. Cumulative net inflows have exceeded $7.49 billion, demand for BTC has skyrocketed, and Bitcoin prices have skyrocketed.
Although the overall market was up, some altcoins like SHIB emerged as the top gainers, rising more than 50% in one week.
Investors will be watching Bitcoin closely over the next few days to determine the validity of the uptrend to $70,000, or a correction to gather liquidity for another big breakout.
1. Bitcoin (BTC)
The demand and supply landscape for Bitcoin continues to change due to increased ETF inflows. In addition to this, investors prefer to hold BTC in anticipation of an even bigger breakout after the February halving.
Bitcoin halving, miners' rewards are cut in half every four years. The last halving took place in 2020 and the next halving will be around April 2024.
In addition to leaving Bitcoin in a deflationary state, the halving will significantly reduce the amount of new coins entering the ecosystem. Please note that the miner reward will drop from the current 6.25 BTC to 3.125 BTC.
This gradual decrease in supply and increase or change in demand tends to cause the price of Bitcoin to rise parabolically. ETFs are also expected to have a significant impact on BTC as demand surges.
The $63,000 area represents a sell wall that needs to weaken to allow profits above $64,000 (red line on the chart). A breakout above this would trigger further FOMO as market participants aim to wipe out all-time highs and then rally above $70,000.
2. Shiba Inu (SHIB)
Like many cryptocurrencies on the market, Shiba Inu Coin also faced increased uncertainty in January, resulting in a correction below the $0.00001 level. Memecoin swept liquidity at its 2024 low point of $0.0000082, followed by a steady consolidation above $0.000009 before a massive breakout to $0.00001467 this week.
A slight decline in the Moving Average Convergence Divergence (MACD) could slow an uptrend. By prompting traders to close their positions.
However, this situation may not hold or last, considering that the Money Flow Index (RSI) is neutral and trending upward, indicating that liquidity is increasing towards the next leg-up. there is. A few 4-hour closes below the yellow support line could cause Bitcoin to fall to retest the $60,000 level before the uptrend resumes supported by further buying pressure .
3.XRP
While most major coins rose in tandem with Bitcoin this week, XRP price showed that the bullish momentum is fading. From the previous swing low of $0.534, the coin price has increased by 11% to $0.59 in current trading.
The sixth largest cryptocurrency, XRP, has continued its slow but steady recovery since last month, influenced by an uptrend line. Dynamic support allowed the asset to rise during a minor dip and maintain its recovery, reaching $0.59 at the time of this article.
If buyers fail to sustain above the broken trend line, the XRP price may return to the lower trend line to regain strength. Traders can prolong the ongoing recovery trend until the rising support remains intact.
4. Dogecoin (DOGE)
The crypto market witnessed an aggressive bullish trend in late February as heavy inflows from spot ETFs pushed up the underlying asset BTC. Parallel to the rise in Bitcoin prices, altcoins also extended their recovery trend, among them Dogecoin, which rose from $0.082 to $0.1, recording a growth of 48.5%. This swing resulted in a massive breakout from the long-standing triangle pattern, indicating a major change in market dynamics.
Analyzing the daily timeframe chart, we can see that Dogecoin price has shown a sideways trend for the past 22 months. This lateral movement confined within two converging trend lines indicates the formation of a symmetrical triangular pattern.
Theoretically, this chart pattern was developed to indicate a period of notable consolidation, the outcome of which determined market dominance. Amidst the recent rally in the cryptocurrency market, DOGE price decisively broke through the ceiling signal and buyers are regaining control over this asset.
Related article
