Traders may have been taken aback by the sudden crypto divergence in token prices on May 23, which followed Bitcoin’s correction after its earlier rally.
Bitcoin was riding on an optimistic train until May 23, when a sudden dip led to surprise among traders and investors. Most had expected further hikes in its price; hence, Bitcoin’s correction sprung as a reversal in trend. As a result, a crypto divergence occurred across the market, and altcoins registered a pause in their rallies. On the other hand, Ethereum emerged on a bullish path even after the decline.
Ethereum’s rally likely happened because of the approvals for the spot ether ETFs in the US. Experts could now predict high inflows for ETH in the next few months, just like BTC did earlier this year. Meanwhile, most analysts did not sound alarm bells even after Bitcoin’s correction. They may be expecting a turnaround during the weekend.
For instance, Tom Lee, a leading researcher on crypto, sounded positive in a recent interview. He claimed BTC was still on an upward price cycle. Further, he noted how Bitcoin looks set to hit $150,000 within 2024. Lee mostly pointed to improving macroeconomic indicators in the US for his predictions.
Although most altcoins were in the red during the last 24 hours, a clear trajectory could only be seen after the next few days.
BTC/USD 1D price chart
Bitcoin is currently trading at around $67,000 on May 24, 2024, with BTC/USD trading lower by a margin of 3.5% in the last 24 hours. Bitcoin’s market cap was trading at around $ 1.32 trillion in the last 24 hours.
BTC/USD is trading higher than its 20-day EMA (63,972.63), as BTC’s 24-hour volume was at around $44 billion. The global crypto market cap decreased by around 3.61%, trading above $2.5 trillion. BTC’s year-to-date returns are at 60.01%.
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