Markets
Bitcoin leads market recovery, will Altcoins follow suit?
O cryptocurrency The market experienced a modest recovery with Bitcoin briefly surpassing $62,000, leading a positive trend in major cryptocurrencies by market cap. This rebound suggests a potential return of bullish sentiment. However, market volatility was evident in significant liquidations totaling more than $87 million in the last 24 hours, with $56 million in short positions. Despite the 2.18% increase in global cryptocurrency market capitalization to $2.29 trillion, total trading volume saw a notable drop of 29.28% over the same period.
Bitcoin Performance and Outlook
At the time of reporting, Bitcoin Price is trading at $61,725.59, with a 24-hour trading volume of $24.6 billion and a price increase of 1.4%. Its market value was $1.2 trillion. Several factors contributed to this increase:
- Bitcoin ETFs saw inflows of $31 million after seven consecutive days of outflows, potentially influencing the recent price movement.
- Crypto analyst Faibik has identified a bullish flag pattern on the weekly chart, predicting a possible rise to $88,000 in July or August. This bullish view is supported by the current sentiment of “fear” in the market, as indicated by the Bitcoin Fear and Greed index at 30.
- Analyst Ali Martinez highlighted historical data that suggests significant price increases following RSI conditions over the last two years. Martinez also noted the current level of the market value to realized value (MVRV) ratio below -8.40%, which has historically preceded price increases ranging from 28% to 100%.
Following this prediction, Bitcoin’s relative strength index rose beyond the 50% level, signaling bullish presence. At the time of writing, the RSI is at level 52.3.
Altcoins surge as crypto market recovers
In a notable market rally, top altcoins posted significant gains, riding the wave of the broader cryptocurrency market rally. Ethereum (ETH) and other major altcoins including Solana (SOL), Dogecoin (DOGE), and Shiba Inu (SHIB) have all seen positive price movements, with increases ranging from 0.8% to 2.8%.
Ethereumthe second-largest cryptocurrency by market cap, is currently trading at $3,387.68. With a substantial 24-hour trading volume of $10.48 billion, ETH has seen a price increase of 0.82% over the past day.
Solana (SOL) showed an even stronger performance, with its price reaching US$136.99. The altcoin has seen an increase of 2.19% in the last 24 hours, accompanied by a trading volume of US$2.72 billion.
Meme coins also joined the rally, with Dogecoin (DOGE) and Shiba Inu (SHIB) showing notable gains. DOGE is currently trading at $0.01253, representing an increase of 2.82%, while SHIB is trading at $0.0001763, an increase of 2.74% in the last 24 hours.
O meme coin The sector as a whole recorded significant growth, with its total market capitalization increasing by 4.15%, reaching US$49.25 billion. Although Shiba Inu saw an increase of approximately 3%, other major players in the segment, including Dogecoin, Pepe Coin and WIF, also showed positive momentum.
This widespread rally in several altcoins indicates a potential shift in market sentiment, with investors showing renewed confidence in the cryptocurrency space beyond Bitcoin. As the market continues to evolve, all eyes will be on whether this positive trend can be sustained in the coming days.
Read too: Pepe Coin Whale Raises Concerns With 1 Tln PEPE Transfer To Binance, What’s Next?
Market dynamics and future prospects
Recent market gains have led to significant liquidations, particularly affecting short positions. Long positions also faced some setbacks, with $30.9 million liquidated. The cryptocurrency market was in decline two weeks ago, influenced by factors such as ETF outflows, Sale from Germany of seized Bitcoin and anticipated movements of Bitcoin held by Mt. Gox.
Bitcoin and Ethereum have been particularly impacted by recent sell-offs, which surpassed $360 million on June 24, when Bitcoin fell below $60,000. Analysts are monitoring “accumulation whales” that may be capitalizing on lower prices to increase their holdings.
As Bitcoin shows signs of recovery amid positive technical indicators and market sentiment, the focus shifts to whether altcoins will follow suit. With analysts projecting potential price increases and investors seeking strategic opportunities, the crypto market appears poised for an interesting period of broader recovery and evolving market dynamics.
Read too: Top Reasons Why Shiba Inu Coin Price Soared, Here’s the Price Target as Whales Buy