The Euphoria Fades, A Correction Could Be Imminent
The excitement over the approval of Bitcoin ETFs has subsided, and the crypto market is now in a more subdued state. Based on the technical structure, it seems that a significant correction may be on the horizon before Bitcoin and top altcoins can reach new record highs again.
Resilient Altcoins to Consider During a Downturn
If you’re looking for altcoins that can weather a potential downturn, Ethereum Name Service (ENS), BONK, and Optimism (OP) are worth considering. These tokens have shown relative stability even in bearish market conditions.
Potential Correction in Bitcoin Price
Expert traders like Doctor Profit are already discussing the possibility of a correction in Bitcoin’s price. According to Doctor Profit, there could be a 30-40% decline from its recent peak of $48,000.
The Next Major Event: Miner Reward Halving
With the approval of ETFs out of the way, investors are now focusing on the next major event: the miner reward halving. According to Rekt Capital, Bitcoin tends to experience a pre-halving retrace followed by a pre-halving rally.
Diversify Your Crypto Portfolio
To minimize risk, it’s recommended to diversify your crypto portfolio. This brings us to top altcoins like ENS, BONK, and OP. Identifying key entry positions can enhance short-term and long-term returns on investment.
Ethereum Name Service (ENS)
If you’re interested in the Ethereum Name Service (ENS) token, investors believe that the rally will continue in Q1. The token has seen significant gains in the last 24 hours, with an increase of 11%. It has also gained 80% and 188% in seven and 30 days, respectively.
Bonk (BONK)
Bonk, a meme coin built on the Solana blockchain, retraced after reaching new all-time highs. However, it found support around $0.00001 and has started to recover. Profit-oriented traders may want to close their positions and re-enter at lower support levels.
Optimism (OP)
Optimism is preparing for a major breakout, but it needs to overcome resistance at $4. Indicators such as the RSI and MACD support an uptrend. However, consecutive four-hour candle closes below $4 could lead to a drop to the range low of $3.5.
Hot Take: The Crypto Market Prepares for a Correction
The euphoria surrounding the approval of Bitcoin ETFs has faded, and now a potential correction looms over the market. Traders are already discussing the possibility of a decline in Bitcoin’s price, and investors are looking ahead to the miner reward halving. Despite this uncertainty, resilient altcoins like ENS, BONK, and OP offer stability and potential returns. Diversifying your crypto portfolio can help minimize risk. Keep an eye on key entry positions for these altcoins as they continue their journeys in the crypto market.
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