Crypto Market Volatility Expected Over the Weekend
On Friday, the total cryptocurrency market capitalization experienced a minor 1 percent drop, now standing at approximately $1.8 trillion. This decline wiped out the recent gains in Bitcoin that followed the FOMC announcement, leaving the bulls and bears contesting for the crucial support/resistance level around $29.1k.
Key Points:
- Bitcoin and Ethereum face uncertainty as the weekend approaches
- On-chain data shows an increase in Bitcoin supply on exchanges, indicating a bearish signal
- A bullish trader predicts a potential retest of support level at $28.3k, followed by a rebound to $31k
- Possibility of Bitcoin dropping to $27.1k, allowing altcoins to rise
- Potential for a synchronized market momentum leading to a crypto capitulation event
Experts in the digital asset space are predicting a sharp spike in volatility in the cryptocurrency market over the weekend. On-chain data provided by Santiment reveals a significant increase of 10k in Bitcoin supply on exchanges within the past 24 hours. Such an increase in supply is generally seen as a bearish signal, putting the bears in a favorable position against the bulls.
A bullish crypto influencer and trader has expressed optimism that Bitcoin’s price could see a classic move over the weekend. This scenario involves a potential retest of the support level at $28.3k, followed by a rebound toward $31k. However, the analyst also warned that the bears could potentially push Bitcoin’s price down to $27.1k, providing some breathing space for altcoins to rise. There’s a possibility of a synchronized momentum across the market, which could lead to a crypto capitulation event.
Hot Take:
The cryptocurrency market is highly volatile, and the upcoming weekend is expected to bring significant movements. Traders should closely monitor the support and resistance levels, as well as the behavior of altcoins. A potential capitulation event could have a significant impact on the market. Stay informed and be prepared for potential price swings.
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