Bitcoin Investors May Have to Wait for Next Big Ascent
Bitcoin investors have high hopes for 2024, but Wolfe Research suggests that they may have to wait a few more weeks for its next big ascent. Despite the launch of spot bitcoin exchange-traded funds in the U.S., bitcoin finished January at the $42,000 level, where it started. This is due to a sell-the-news phenomenon that temporarily pushed bitcoin below $39,000. While the price has recovered, it has yet to reclaim its post-ETF approval highs.
According to Wolfe Research’s chart analyst Rob Ginsberg, bitcoin is likely to experience continued consolidation in the low $40,000 range over the next few weeks. Ginsberg believes that a breakout is unlikely in the near term and predicts further declines before the cryptocurrency’s next run.
Solana and Altcoins Poised for Breakouts
While bitcoin faces potential weakness, Solana and other altcoins may be poised for breakouts. Ginsberg notes that Solana is forming a bull flag and has positive moving average convergence/divergence signals. He predicts a breakout through $100 to new highs for Solana and suggests that several other altcoins are setting up similarly.
Ginsberg also highlights Cardano and Avalanche as tokens set to rise in the near term, while Chainlink could be poised for a breakout. Altcoins have gained more attention since the approval of spot bitcoin ETF trading by the U.S. Securities and Exchange Commission. Bitcoin dominance dropped sharply on January 9, indicating increased interest in smaller altcoins with potential for faster and larger returns.
Hot Take: Bitcoin Consolidates as Altcoins Prepare for Breakouts
Despite high hopes for 2024, bitcoin has experienced consolidation at the $42,000 level and may face further declines in the coming weeks. Wolfe Research suggests that a breakout is unlikely in the near term. On the other hand, Solana and several altcoins, including Cardano, Avalanche, and Chainlink, are showing signs of potential breakouts. Altcoins have gained attention since the approval of spot bitcoin ETF trading, with investors seeking faster and larger returns. As bitcoin investors wait for its next big ascent, the focus may shift to altcoins that stand to benefit from rises in the bitcoin price.
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