Cryptocurrencies have been trending higher since late Wednesday, with Bitcoin price leading its peers, backed by a break above $44,000. Investors welcomed this move with open arms and confirmed positive sentiment in the market. Altcoins are also waking up after weeks of stagnation and heavy overhead. For example, Ethereum is back above $2,400, paving the way for significant increases in Solana, XRP and Cardano prices.
Bitcoin (BTC)
After taking a hit marked by limited volatility, Bitcoin halted its northward trend and regained support at $43,000 as well as $44,000. This surprise move follows impressive performance in the BTC ETF arena, where most products are now achieving encouraging net inflows.
ETF data from SoSoValue shows that the total inflow of all spot BTC ETFs reached $146 million, equal to the net inflow for at least nine consecutive days.
The ETFs are still new, but they are attracting more investors who see the long-term potential of Bitcoin. The key level to look at is $45,000. If Bitcoin breaks above that, it could rise to $48,000 or higher.
The Bitcoin halving in April is another positive factor. This could spark FOMO among investors looking to take advantage of a possible bull run.
On the downside, traders should watch out for support from the 20-day exponential moving average (EMA) and the 50-day EMA (the blue and red lines catch the price on the chart).
Levels to watch:
The moving average convergence divergence (MACD) is above neutral, supporting the uptrend. Resistance to watch: $45,000 Support to watch: The 20-day EMA, $42,000, $40,000.
Also read: Bitcoin Halving 2024: How Miners Will Affect BTC Price Future Trend
Ethereum (ETH)
The second largest cryptocurrency after testing support at $2,200 climbed above $2,400 on Wednesday, highlighting the fresh liquidity entering the altcoins market.
Investors turned to altcoins like ETH and SOL after Bitcoin fell below $39,000 with its recovery stalling below $44,000. The Dencun upgrade is one of many factors driving interest in Ether.
Developers successfully launched the upgrade on the network’s third and final testnet, Holesky, on February 7, paving the way for the final debut on the mainnet.
If traders and speculators find Ethereum attractive and increase exposure, resistance in the yellow band will not delay the breakout to $2,700 and then above $3,000 any longer.
Support at $2,400 will be crucial for continuation of the uptrend. However, if bypassed, the middle and lower boundaries of the channel will come in handy to prevent a return to $2,200.
Solana (SUN)
Solana has a history of rewarding those who buy the dips. Despite high volatility this week after its network went offline, halting the production of new blocks, SOL price is trending higher along with its altcoin peers.
The competing smart contracts token, which offers high transaction throughput, lower transaction costs and enviable scalability, has reclaimed the $100 S/R, underscoring the faith investors have in it.
The Ichimoku Cloud reinforces the bullish grip Solana, indicating that the path of least resistance is gradually turning upwards. A daily close above $100 will confirm the return of the bulls, propping up SOL to $120 for the next leg. Solana is one of the altcoins with the potential to set a new record high in 2024.
In general, the crypto market is starting to thaw as the Bitcoin halving approaches. The event that halves miner rewards significantly reduces the supply of Bitcoin. With demand increasing or staying the same, there is usually a high probability for a rally in Bitcoin price and among altcoins.
For many people, this period is of crucial importance, as it allows the accumulation of cryptocurrency before it is halved. Despite the hype surrounding halving, price increases are not guaranteed and past performance does not always reflect future performance. That said, due diligence should be performed while investing the amount you are willing to lose if the market moves in the opposite direction.
related articles
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
UnCirculars – Cutting through the noise, delivering unbiased crypto news
