Markets
Bitcoin, Ethereum, Ripple Weekly Wrap: June 7, 2024
The crypto market has not been the same for all assets. Bitcoin (BTC) has performed well, but major coins like Ethereum (ETH) and Ripple (XRP) are still suffering. The chances of altcoins gaining pace and recovering depend on Bitcoin’s performance.
Identifying the altcoin season is important as it can estimate when and how much growth altcoins could experience.
The Potential of an Altcoin Season
Juan Pellicer, senior researcher at IntoTheBlock, says several signs determine the arrival of altcoin season.
“In previous market cycles, altcoin seasons often begin with a sustained downtrend BTC Dominance, indicating a change in market sentiment towards altcoins. While this trend is a useful signal, identifying potential winners in the upcoming altcoin season requires analyzing advanced on-chain metrics,” said Pellicer.
“For example, the average holding time of an asset by its holders can indicate its resilience. Assets held longer by investors may experience more sustained price rises during bull markets. Additionally, the network’s data related to whale behavior is invaluable,” she added.
Secondly, market growth also depends on global demand for cryptoassets. The recent rise is a sign that confirms this demand. However, stability is the next concern. Expanding on the same, Julio Moreno, Head of Research at Cryptoquant, told BeInCrypto,
“The stabilization and then slight increase in demand for Bitcoin from permanent holders and large holders (whales). This indicates greater growth in demand this month compared to April. Permanent holders have purchased 74 thousand Bitcoins in the last 30 days, while demand from whales is growing 5% monthly now. See the second and third graph. We still need to see greater growth in demand from these groups of investors for the rise in prices to be sustainable.”
Demand from permanent Bitcoin holders. Source: CriptoQuant
Therefore, these tips are essential when looking for a guide to the altcoin season.
Price prediction for BTC, ETH, XRP: Growth likely, albeit slow
Bitcoin (BTC)
The price of Bitcoin exceeded market expectations, recording 5% growth throughout the week. This rally brought the trading price to $71,160, close to the critical resistance of $71,800. Broader market signals are still bullish, with BTC moving within a flag pattern indicating a 45% rally on the cards.
However, the more practical outlook is a rise to the current all-time high of $73,650. The breach would establish a new ATH for BTC.
See more information: Bitcoin Halving History: Everything You Need to Know
On the other hand, the $71,800 barrier has been unbroken for almost three weeks. A failure to breach this level could subdue the rally, leaving Bitcoin price falling to $68,500.
Ethereum (ETH)
Although the price of Ethereum is not trending at the moment, it is supporting the rally seen last month. The altcoin broke out of the descending wedge and rose to $3,980 at one point, but soon fell.
ETH is struggling to close above the 61.8% Fibonacci retracement of $3,829. This level is also known as the bull run support floor, and recovering above it would raise $4,000.
See more information: Who is Vitalik Buterin? An in-depth look at Ethereum’s co-founder
But if the Ethereum price fails to secure this level of support, a drawdown cannot be ruled out. ETH could therefore decline on the daily chart to test support at $3,695 or the 50% Fib line at $3,582.
Ripple (XRP)
XRP price had a disappointing performance, trading at $0.52. The altcoin is forming an ascending triangle pattern and awaiting a breakout. This bullish chart formation features a horizontal resistance line and an ascending support line. Indicates increased buying pressure, suggesting a potential breakout above the resistance level.
However, this theoretical increase has not yet been observed as currently the altcoin has barely closed above the 23.6% Fibonacci retracement. This is a good sign as this Fibonacci level is known as the bear market support floor. Securing it would prevent a further reduction in the price of XRP.
See more information: Everything you need to know about Ripple vs SEC
But losing it could send the altcoin down to $0.50 or lower to test the critical support at $0.47, completely invalidating the bullish thesis.
Disclaimer
In line with the Confidence Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyIt is Disclaimers have been updated.