๐ Crypto Price Prediction: A Bearish Week with Potential for Recovery ๐
The cryptocurrency market has experienced a notable bearish trend this week, as major coins undergo a correction. This retracement was expected by analysts, as the previous recovery trend had left these assets in an overbought region. However, despite the current downturn, there is potential for a recovery and a continuation of the bullish momentum.
One factor contributing to the recent sell-off is the outflow in spot Bitcoin ETFs. These ETFs have seen substantial outflows, with Grayscale ETF GBTC experiencing $358 million leaving in a single day. In total, GBTCโs outflows have reached $13.63 billion. On the other hand, BlackRockโs Bitcoin spot ETF IBIT has seen a significant inflow of $233 million.
While this selling pressure has contributed to the downward movement of Bitcoin, itโs important to note that the broader trend is still bullish. The current correction may actually benefit the market by allowing the exhausted bullish momentum to regain strength for a higher rally.
1) Bitcoin (BTC)
Bitcoin, which was created in 2009, is a decentralized digital currency that enables peer-to-peer transactions without a central authority. It uses blockchain technology for security and is often viewed as a hedge against inflation in the traditional market.
As of now, Bitcoin has a market capitalization of $1.26 trillion and a trading volume of $40.4 billion. The price of BTC is currently in correction mode after reaching a new all-time high of $73,800 and then dropping to $64,815 within two weeks, resulting in a 12.5% loss.
There has been some buying interest at the $60,000 support level, which is also the 38.2% Fibonacci retracement level. However, there hasnโt been a clear confirmation of recovery yet, so there may be some consolidation before buyers regain strength. If the price loses support at $60,000, the next floor to watch for is around $56,000, which aligns with the 50% Fibonacci level.
2) Dogecoin (DOGE)
Dogecoin is a peer-to-peer cryptocurrency that started as a joke based on the popular โDogeโ meme featuring a Shiba Inu dog. It stands out for its low transaction fees, fast transaction times, and use in charitable donations and online tipping.
The price of Dogecoin is currently undergoing a correction phase, trading between a downsloping resistance trendline and a horizontal support level of $0.12. This support level coincides with the 61.8% Fibonacci retracement level and has lifted the price by 29.4% to its current value of $0.158.
With a market capitalization of $22.77 billion, Dogecoin has climbed to become the eighth-largest cryptocurrency, surpassing Cardano. If buying momentum continues, the price may rise another 8% to reach the overhead trendline. A breakout above this barrier would indicate a resumption of the recovery trend and could push the price towards $0.19 to $0.20.
3) Internet Computer (ICP)
Internet Computer is a blockchain project developed by the DFINITY Foundation to extend the functionality of the internet by supporting smart contract deployment at web speed and processing power without limits.
ICP coin has recently experienced a significant downturn, falling from $16.99 to $10.5, representing a 37.9% decline. However, a trendline has provided support and boosted the altcoinโs value by 24% to its current price of $13.09. The market capitalization of Internet Computer Coin is currently at $6.1 billion, with a trading volume of $274 million in the last 24 hours.
If buying pressure continues, the price of ICP could rise another 22% to challenge the previous high of $16.26, followed by $18.
๐ Takeaway: Potential for Recovery Amidst Correction
The cryptocurrency market is currently experiencing a correction following Bitcoinโs lead. While the support at $60,000 has temporarily halted the downward trend in BTC price, buyers are still waiting for better confirmation of a reversal before entering the market.
Despite the correction, there is potential for recovery and a continuation of the bullish momentum. Dogecoin and Internet Computer are also showing signs of potential upward movement if buying pressure persists.
Itโs important to closely monitor these cryptocurrencies and look for key indicators such as breakout levels and confirmation of reversal patterns before making any investment decisions.
Sources: Twitter
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