Bitcoin Surges to $64,000: Impact on Altcoins
Bitcoin price experienced a surprising surge this week, reaching $64,000 from its support area above $50,000. This upward movement has not only changed the short-term and long-term landscape of Bitcoin but has also had an impact on other cryptocurrencies such as Shiba Inu (SHIB), Dogecoin (DOGE), and XRP.
The surge in Bitcoin’s price can be attributed to the approval of the ETF (Exchange-Traded Fund) in January. This approval has resulted in a significant increase in demand for BTC, with over $7.49 billion in cumulative total net inflow. This surge in demand has propelled Bitcoin’s price to new heights.
While the rally was observed across the market, some altcoins like SHIB have emerged as top gainers, experiencing an increase of more than 50% in just one week. Investors are now closely monitoring Bitcoin’s behavior to determine whether the uptrend will continue towards $70,000 or if a correction is imminent.
1. Bitcoin (BTC)
The supply and demand dynamics for Bitcoin continue to evolve, driven by increasing ETF inflows. Additionally, investors are holding onto their BTC in anticipation of a larger breakout following the halving event in February. Bitcoin’s halving occurs every four years and reduces miner rewards by half. The next halving is expected to take place around April 2024.
Halving not only makes Bitcoin deflationary but also significantly reduces the number of new coins entering the ecosystem. As miner rewards decrease from 6.25 BTC to 3.125 BTC, the gradual decrease in supply combined with steady or increasing demand tends to drive Bitcoin’s price higher.
The current sell wall at $63,000 needs to be weakened for further gains above $64,000. Breaking above this level could trigger more FOMO (Fear Of Missing Out) among market participants, leading to a potential sweep of the all-time high and a surge beyond $70,000.
2. Shiba Inu (SHIB)
Shiba Inu Coin, like many other cryptocurrencies, experienced uncertainty in January, resulting in a correction below the $0.00001 level. However, the meme coin managed to consolidate above $0.000009 before witnessing a massive breakout this week, reaching $0.00001467.
Although there is a minor dip in the Moving Average Convergence Divergence (MACD), which may slow down the uptrend temporarily, the Money Flow Index (RSI) indicates increasing liquidity for another leg up. If BTC drops below the yellow support line and retests the $60,000 level, it is expected to resume its uptrend with more buying pressure.
3. XRP
While most major coins rallied alongside Bitcoin, XRP showcased waning bullish momentum this week. The coin’s price jumped 11% from its last swing low of $0.534 to its current price of $0.59.
XRP has been on a steady recovery since last month, supported by an ascending trendline. As long as this rising support remains intact, traders can expect the ongoing recovery trend to continue. However, if buyers fail to sustain above the breached trendline, XRP’s price may fall back to the lower trendline to regain strength.
4. Dogecoin (DOGE)
The cryptocurrency market witnessed an aggressive bullish trend in late February due to massive inflows from the spot ETF. This uplifted Bitcoin’s price and had a ripple effect on altcoins like Dogecoin, which experienced a growth of 48.5%, rising from $0.082 to $0.1.
An analysis of DOGE’s daily time frame chart reveals a sideways trend for the past 22 months, forming a symmetrical triangle pattern. This pattern indicates a period of consolidation that determines the dominant force in the market. With the recent breakout from the upper boundary of the triangle, buyers are regaining control over DOGE.
Hot Take: Bitcoin’s Surge and its Impact on Altcoins
The recent surge in Bitcoin’s price has had a significant impact on altcoins such as Shiba Inu, XRP, and Dogecoin. As Bitcoin continues to dominate the market, it sets the tone for other cryptocurrencies. The approval of the ETF has further fueled demand for BTC, resulting in a surge in its price.
Investors are now closely monitoring Bitcoin’s behavior to determine whether this uptrend will continue or if a correction is imminent. The supply and demand dynamics for Bitcoin are changing, driven by increasing ETF inflows and anticipation of a larger breakout post-halving.
Altcoins like SHIB, XRP, and DOGE have also experienced significant growth due to Bitcoin’s rally. However, their performance may be influenced by factors specific to each coin. Traders should consider technical indicators and market trends when making investment decisions.
Overall, the crypto market remains highly volatile, and investors should exercise caution and conduct thorough research before making any investment decisions. The market is constantly evolving, and staying informed is crucial to navigate through these changes successfully.
By
By
By
By