Crypto Price Prediction: Bitcoin Consolidates, Altcoins in Focus
Cryptocurrencies led by Bitcoin continue to wobble more than a week after BTC ETFs were approved in the US. Entries have become vaguely elusive, pushing traders and investors into the sidelines, at least until the market stabilizes.
Crypto analysts are conflicted, with some expecting a deeper sweep below $40,000 to $38,000 in the price of Bitcoin. Michaël van de Poppe, a renowned trader, for instance, reckoned via a post on X that BTC price will likely continue to consolidate. He also argued that as Bitcoin consolidates, attention will shift to altcoins.
Polygon (MATIC) Flaunts Profitable Dips
Polygon is diving deeper into the abyss trimming the more than 45% increase in value from the beginning of December to the month’s peak at $1.09. This prominent Ethereum layer 1 scaling solutions provider is back on the drawing board with the decline seemingly unstoppable.
Holding below all three applied MAs; the 20 Exponential Moving Average (EMA), the 50 EMA, and the 200 EMA, the path of least resistance is vividly downwards.
A sell signal from the Moving Average Convergence Divergence (MACD) spoils the broth for the bulls while tipping the scales in the sellers’ favor. Traders would prefer to keep shorting MATIC as long as the MACD line in blue holds below the signal line in red while the momentum indicator generally slides to lower levels — currently at -0.012.
Arbitrum (ARB) Screams More Pain, But There’s Hope
One of the fastest-growing projects in the Ethereum ecosystem, Arbitrum, heavily rewarded holders during the Q4 run, which saw it rally from $0.76 in October to a new record high posted at $2.4 in January.
Following such a massive price increase, it is normal for a correction to occur. This can be fuelled by profit-taking activities or general market drawdown. In the Arbitrum case, the dive to $1.9 is a result of both factors.
Although it is possible for ARB to resume the uptrend above $2, the prevailing technical outlook on the four-hour chart paints a short-term grim picture.
Is It A Good Time To Buy Lido DAO (LDO) Dips?
Investors interested in Ethereum-based tokens may want to consider Lido DAO. This is the most significant token in the liquid staking arena. Its prominence in the sector saw it explode to $4 this month.
Despite the current retracement to $3.1, LDO still maintains a 48% increase in the last 30 days.
A descending channel is guiding the correction, which extends below the key ascending trendline. Lido price bounced off this line several times in December and January. Therefore, losing it as a support could have a far-reaching impact on the token’s performance.
Hot Take: Altcoins Present Opportunities Amidst Crypto Market Volatility
The recent volatility in the crypto market has left many investors uncertain about their next move. However, amidst this uncertainty, altcoins like Polygon (MATIC), Arbitrum (ARB), and Lido DAO (LDO) present promising opportunities for those willing to take risks.
Polygon has experienced a significant dip but shows signs of a potential trend reversal. Arbitrum may be facing short-term challenges but offers opportunities for investors who missed out on its previous rally. Lido DAO, despite its retracement, still holds strong potential in the liquid staking arena.
While the market may be unpredictable, keeping a close eye on these altcoins and considering strategic entry points could lead to profitable outcomes for crypto investors.
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