With Bitcoin hitting a pause in its rally, and neither crashing to a low, the current crypto strategies have mainly leaned towards a fixed trading range in the market in the upcoming week.
Weekly crypto strategies across the space have mainly relied on Bitcoin and its stagnant price. While it was trading just above $60,000 at the week’s beginning, it has settled in a trading range around this level. A dip to $56,000 was also short-lived, but a price breakout has also not appeared on the horizon. As a result, the overall crypto landscape holds a wait-and-watch outlook.
While Bitcoin’s price trajectory is tricky, its history of comebacks suggests that it has the potential to overcome barriers and continue its growth. As the crypto market grows, it is likely that we will see more stable price movements driven by underlying fundamentals.
However, at this juncture, macroeconomic events have had deeper impacts on the market. A key instance has emerged this week, when lower inflation in the US resulted in a stock market rally. Meanwhile, the same hasn’t been the case in the crypto market. In fact, profit bookings in the market have been prominent.
On the other hand, the biggest positive signal has been the relentless support from institutional investors. Household names like MicroStrategy continue to hold a bullish crypto outlook. Prices in the crypto landscape are also stabilized by the sufficient inflows from the spot ETFs.
Moreover, dips in Bitcoin haven’t been an uncommon feature. BTC and the broader crypto market have recovered by sharper and longer declines. Thus, the resilience of the market remains intact despite the prevailing conditions.
A detailed analysis of price patterns and the crypto outlook reveals Bitcoin has consolidated in the range between $50,000 and $70,000. This range could likely become the ‘new normal’ for the crypto market. Besides, weekly returns in the case of other tokens like ETH or SOL have also been relatively negligible. Many altcoins tend to move in correlation with Bitcoin. A Bitcoin dip can lead to a sell-off in altcoins, while a recovery can trigger a rally.
At the current price levels, a decisive move above a key resistance level can signal a potential reversal and initiate a new uptrend. This resistance level is presently centered at $60,000.
In other news, Bitcoin ETFs have been in focus this week. From a bank launching an ETF trading feature to a Grayscale official being bullish on the crypto ETF market, the news reports have been optimistic. Besides, a new Grayscale investment fund will solely invest in MakerDAO tokens. Global crypto regulatory updates also feature in this week’s crypto roundup.
This week, the following tokens were the biggest gainers:
But these tokens were at the bottom of the table:
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