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  • Crypto market sees strong surge, with Bitcoin crossing $52,000 and Ethereum reclaiming $2,700.
  • ETF inflows hit $4 billion, boosting market dynamics and pushing Bitcoin’s market cap past $1 trillion.

The cryptocurrency market is witnessing remarkable strength this week, with Bitcoin surging above $52,000 for the first time since December 2021. This bullish momentum has not been limited to Bitcoin alone, as altcoins have also exhibited significant strength. Ethereum (ETH) notably reclaimed the crucial support/resistance level at $2,790, leading the charge among alternative cryptocurrencies.

Analysts are closely monitoring Bitcoin’s movement, particularly as it approaches a significant weekly resistance level from December 2021. Michaël van de Poppe, founder of MN Trading Consultancy, suggests that the ongoing pre-halving rally could continue unabated if Bitcoin surpasses this resistance. Van de Poppe predicts a peak between $54,000 and $58,000 if this bullish trend persists.

Bitcoin’s Market Cap Surpasses $1 Trillion

Amidst this rally, Bitcoin has maintained its buoyancy and surged on a northward trajectory. Despite disappointing US CPI data indicating persistent inflation, investors remained undeterred, buying the dip and propelling Bitcoin’s price upward. Notably, Bitcoin reclaimed the $1 trillion market cap milestone for the first time in two years, surpassing giants like Tesla and Walmart.

 

The emergence of Exchange-Traded Funds (ETFs) is reshaping the dynamics of the cryptocurrency market in 2024. With over $4 billion in inflows recorded thus far, these investment products are being hailed as a resounding success. SoSoValue reports that total net inflows have reached $630 million, setting a new record high. IBIT leads the pack as the best-performing crypto, followed by FBTC and ARKB.

Bitcoin Price Prediction and Market Outlook

Bitcoin’s recent surge past $50,000 and its proximity to the $52,000 level, a key weekly resistance, has sparked speculation among investors. The Relative Strength Index (RSI) indicator suggests that Bitcoin is nearing overbought territory, indicating continued bullish sentiment. Analysts anticipate a potential FOMO (Fear of Missing Out) scenario if Bitcoin breaches $52,000, with short-term targets set at $54,000 and medium-term goals at $58,000.

Bitcoin’s current position in 2024 is marked by growing interest in ETFs and optimism surrounding the upcoming halving event. Scheduled every four years, the halving event reduces miner rewards by half, effectively controlling inflation. Additionally, the rapid collection by BTC giants in the past few weeks contributes to the fascination with Bitcoin’s rise.

On-chain data analysis from Santiment shows that these whales have amassed an impressive 140,000 Bitcoins valued at more than $6.3 billion within three weeks. This increased interest from big investors is mirrored in the weekly CoinShares report, emphasizing Bitcoin’s leading position in the $1.1 billion cash injections into digital asset investment products last week.

Following the CPI data release, major stock indexes and the crypto markets experienced retracements from prior gains. Bitcoin’s sudden bullish breakout led to the liquidation of approximately $200 million, primarily affecting short traders. However, Ethereum (ETH) and Solana (SOL) also joined the upward momentum, contributing to a broader rally in the altcoin market.

Amidst this surge, options traders are increasingly optimistic, with some eyeing targets as high as $75,000 in the coming months. However, concerns over inflation and market reactions to economic data continue to influence investor sentiment.


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