Scouting for the Best Cryptocurrency to Invest in Now
With the recent downtrend in major cryptocurrencies and Bitcoin hitting new monthly lows below $63,500, investors are actively seeking the ideal cryptocurrency to invest in now. As per insights from crypto analytics platform Santiment, crowd sentiment has been notably unfavorable for four consecutive weeks. This negative sentiment has led to fear and disinterest in Bitcoin among traders, with prices hovering between $65K to $66K. The ongoing level of fear, uncertainty, and doubt (FUD) is quite uncommon.
- A potential near-term price bounce may be on the horizon, according to Santiment.
- However, this anticipated bounce might not materialize until the outflows of funds ease up.
The Impact of Outflows and Government Action on Cryptocurrency Prices
Following the recent trends, ETF outflows exceeded $800 million since June 10th. This significant outflow reflects a challenging time for digital asset investments. Moreover, the German government’s move to transfer 1,000 BTC to exchanges on Thursday has also contributed to the current market dynamics. With a total of 43,000 BTC in confiscated holdings, this action points towards potential market disruptions. Analyzing Bitcoin’s recent performance, chart indicators hint at the possibility of continued bearish movements. The cryptocurrency encountered strong resistance at its 50-day moving average (50DMA) on Thursday, signaling further downside.
Is Bitcoin Still the Top Choice for Investment?
A revisit to the lows of mid-May around $60,000 could be a feasible scenario in the near future. This presents an opportunity for traders to accumulate more Bitcoin at lower prices. Factors such as the Federal Reserve’s expected interest rate cuts later this year, the upcoming US Presidential election often associated with bull runs, and anticipated reductions in post-halving sell pressure from miners by year-end indicate a potentially bullish outlook for Bitcoin in late 2024. Options traders are showing confidence in this narrative, with increased calls for BTC prices between $90,000-100,000 in the months ahead.
- The potential for Bitcoin to surpass $100,000 in 2025 makes it a compelling investment option.
- With its strong price trajectory and established reputation, Bitcoin remains a preferred choice for investors entering the market.
Exploring Alternatives: Fantom (FTM) Performance
Fantom (FTM), a layer-1 protocol, recorded a 7% surge in value on Friday, making it one of the top-performing cryptocurrencies. Currently priced around $0.585, FTM has rebounded approximately 25% from its recent lows in the $0.48 range. There is growing optimism that FTM could breach the crucial $0.60 resistance level, also aligning with the 200-day moving average (200DMA). If this resistance is broken, a swift rally towards the yearly highs of $1.20 could be envisaged, offering a potential 2x upside for FTM.
Keeping an Eye on Ethereum Name Services (ENS)
Ethereum Name Services (ENS) is testing significant long-term resistance near $30, a level that marks the highs from 2024 and mid-2022. While an immediate breakthrough is not guaranteed, the launch of Ethereum ETFs in the coming months, coupled with increased liquidity flow into the Ethereum ecosystem, could trigger a bullish breakout. This scenario might pave the way for a retest of the 2021 record levels exceeding $100. With the capacity to deliver 5x gains during this bullish phase, ENS emerges as a compelling investment opportunity.
Considering Crypto Alternatives
While the aforementioned cryptocurrencies display promising upside potential, traders seeking higher returns might explore alternative options:
- Meme coins like Dogecoin or Shiba Inu offer limited upside potential due to their inflated market caps.
- However, scouting for emerging meme coins before they gain traction could unlock substantial gains.
For a curated list of trending meme coins in June 2024, analysts recommend staying informed through reliable sources like Cryptonews.com.
Hot Take: The Crypto Market Landscape
The current crypto market presents a mix of challenges and opportunities for investors. While Bitcoin’s future trajectory remains promising, other cryptocurrencies like Fantom and Ethereum Name Services also showcase potential for significant gains. Whether sticking with the tried-and-tested Bitcoin or exploring alternative investment avenues, thorough research and strategic decision-making are key to navigating the evolving crypto landscape.
Sources: Santiment Feed, ETF.com, The Bitcoin Therapist
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