Bitcoin displayed a lot of strength in the last 24 hours when it was traded within a very narrow range ($112,300 - $112,800) thus resulting in a small uptick of 1%. The picture of the overall cryptocurrency market is quite mixed; however, the altcoins have attracted the most attention.
Over the last month, the price of Ethereum has been on the rise, reaching close to $4,300, which means it has increased by 25% month-on-month. Also, we can say that Solana has gained 3%, XRP has gone up by 4%, and Dogecoin's value has increased by more than 7% showing that quite a lot of money from speculators is flowing into the altcoin market. Altcoins are clearly gaining ground; however, Bitcoin is not losing its stronghold and is keeping the trend stable.
Technically speaking, the market mood is becoming bullish. The short-term moving average that is located around $111,800 is very much in favour of the buyers, while the long-term averages at $113,200 and $114,600 give traders the idea of where the market trend could be headed. The level of support has strong enough to be above $110,800, where the 100-hour moving average is giving a good cushion in case the price moves down. In contrast, the level of resistance is still quite close to $113,000.
In the event that the breakout from this level is clear and goes beyond it, the power of Bitcoin could reach $115,000 and even higher. However, if the price drops below $110,800, there might be a fall to the $109,000 level. Directional cues are what traders look for and that is why they are at these levels trying to figure out what is going to happen next. The on-chain data that we have at our disposal is indicating that the trend maybe positive.
Large Bitcoin wallets, alternatively referred to as "whales," are still buying Bitcoin. There has been a significant change in the hot money that is going from exchanges to cold storage. The trend indicates that they have confidence in the long term. Whales that bought Bitcoin within the last five months have set their average cost basis at about $91,000, so at the present prices, they are well in profit. This in turn means that the probability of a large amount of Bitcoin being sold in the short term is low. A sudden rise in Bitcoin deposited at the exchanges could change the situation.
For the time being, the accumulation trend keeps the candle green. Demand for cryptocurrency exchange-traded funds (ETFs), as well as the institutional investment that has been going up lately, are the main reasons behind this positive market mood. Ethereum’s recent rally is one of the examples of the market appetite for risk, yet as market psychology moves from fear to greed, the caution flag is raised. Like in history, currently, traders have to be very watchful before such practice of sentiment happens again – they could be corrected very soon.
These day’s economic situation also strengthens market optimism; the not so great jobs report in the U.S. is fomenting the idea that the Federal Reserve will cut rates. Usually lower rates are good for risk assets such as cryptocurrencies. ETF inflows into Bitcoin and Ethereum are reliable and keep this structural demand flowing. There is also the absence of big scandal news that adds fuel to the bullish case, enabling the market to concentrate on those aspects.
Bitcoin's period of stability right below resistance, along with alt coins' rising trend, is putting the crypto market at a decisive crossroads. The next big move will probably be determined by these levels, so the $113,000 resistance and the $110,800 support levels should be watched closely by traders. If the bullish sentiment continues, the market could go higher and possibly reach the level of $115,000 or above. On the other hand, it is worth noting that corrections may still occur due to the overextended optimism.
In conclusion, the crypto market is at a turning point. Bitcoin's security, altcoin ascents, and positive on-chain metrics all combine to create a cooperative atmosphere for expansion. However, the traders have to be very careful as there is the risk of pullbacks, especially if the mood gets too hot. The market is on the side of the bulls, fortified by macroeconomic accelerators and the inflow of institutional capital, yet, thinking long, discipline will be a must for the coming phase.
Image: Generated by AI
Posted Using INLEO