Markets
Bitcoin, Dogecoin, Ethereum Pull Back on Profit Taking by Retail Investors: Analyst Predicts Parabolic Rise for King Crypto After Consolidation Phase
May 19, 2024 9:44 pm | 3 minutes reading
Major cryptocurrencies fell on Sunday night as profit-hungry traders took gains from last week’s rally.
| Cryptocurrency | Earnings +/- | Price (recorded at 8:30 p.m. EDT) |
| Bitcoin (CRYPTO: Bitcoin) | -1.05% | US$66,231.95 |
| Ethereum (CRYPTO: ETH) | -1.79% | US$3,066.75 |
| Dogecoin (CRYPTO: DOGE) | -2.97% | $0.1488 |
What happened: Bitcoin, the largest digital asset on the planet, hovered above the $66,000 mark after surpassing $67,000 earlier in the day. The correction led the rest of the market to give up the previous week’s gains as well.
Bitcoin open interest fell 1.13% in the last 24 hours to $32.73 billion at the time of publishing. The biggest decline was seen on Bitget, while CME – the world’s largest Bitcoin futures exchange – suffered a 0.65% drop.
Despite the correction, most traders were optimistic about Bitcoin’s prospects as the number of long positions in the coin significantly exceeded short positions in the last 24 hours.
The Cryptocurrency Fear and Greed Index continued to signal “Greed” although the degree of greed has decreased since last week’s rally.
Biggest earner (24 hours)
| Cryptocurrency | Earnings +/- | Price (recorded at 8:30 p.m. EDT) |
| Bitcoin Money (BCH) | +1.66% | US$482.80 |
| Arweave (AIR) | +1.06% | $47.78 |
| Chain link (LINK) | +0.49% | $16.46 |
The global cryptocurrency market value is $2.39 trillion, after a 1.59% drop in the last 24 hours.
Stock futures rose on Sunday following record rally in Dow Jones Industrial Average Friday. O Dow Jones Industrial Average Futures was up 0.1%, or 41 points, as of 8:30 p.m. EDT. Futures linked to S&P 500 gained 0.14%, while Nasdaq 100 Futures added 0.17%.
Next week is expected to witness Q1 earnings from leading AI-based companies such as NVIDIA Corp., with analysts predicting an overall positive outcome for technology stocks. Key macroeconomic data, such as existing home sales and unemployment claims data, will also be on investors’ radar.
View more: Best Cryptocurrency Scanners
Analyst Notes: On-chain analytics firm Santiment attributed the brake on the rally to the capitulation of small Bitcoin holders. The number of non-empty wallets has fallen to levels not seen in the last two months.
However, the company added: “Historically, small wallets dumping their coins into larger wallets is an encouraging and bullish sign for BTC.”
Analyst Rekt Capital drew a historical equivalence with the last halving and predicted a consolidation phase for Bitcoin before it entered a parabolic rally.
In 2020, Bitcoin held a -19% retracement around the Halving
And then consolidated for 160 days after the Halving before entering the Parabolic Phase of the cycle (green)
In 2024, Bitcoin retreated almost -24% around the Halving
And if history repeats itself, the price… pic.twitter.com/5cSg3FTNGZ
-Rekt Capital (@rektcapital) May 19, 2024
Cryptocurrency Analyst Michael van de Poppe predicted a bullish pivot for altcoins, saying: “It is very likely that Altcoins will continue their upward trajectory from here and that we have completed the correction.”
Note that crypto influencer recently Dumped all your Bitcoins in favor of altcoins.
Photo via Shutterstock
Read next: Senate votes to overturn controversial SEC crypto rule, but will Biden veto it?
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