Cryptocurrency Price Predictions: Sell Pressure on BTC ETF Leads to Market Correction
The past week saw a notable correction in the sell pressure on the BTC ETF, resulting in a loss of $888 million. Meanwhile, 10 other ETFs saw a combined outflow of $10 million. Bitcoin and Ethereum, two of the leading assets, experienced weekly losses of 5% and 8% respectively. However, the weekend showed a decrease in supply pressure, causing many major assets to trade sideways.
If the BTC price continues to drop below $60,000 in the coming week, it could increase selling pressure across the entire market. This raises the question – what’s next for the crypto market?
1) Bitcoin (BTC)
Bitcoin is a decentralized digital currency that allows for peer-to-peer exchanges without the need for a central authority. Its blockchain technology ensures security and transparency. In the ongoing correction, a resistance trendline showed a drop in price from $73,808 to $65,067 in just two weeks. Currently, the 38.2% Fibonacci retracement level is seeking support for an 11.8% pullback. The current market capitalization for Bitcoin is around $1.27 trillion, with a trading volume of $23.25 billion in the past 24 hours. The renewed interest in BTC-ETFs could potentially boost its price and spark a market recovery. A bullish breakout from the overhead pattern could lead to an uptrend towards $73,800 and $69,000.
2) Dogecoin (DOGE)
Created as a joke in 2013, Dogecoin has evolved into a prominent cryptocurrency with a loyal following. It features the Shiba Inu from the “Doge” meme as its mascot. Currently trading at $0.05, the DOGE price has gained 6.5% in the past 24 hours, with a market capitalization of approximately $24.7 billion and a trading volume of $2.94 billion. The daily chart analysis shows a pennant formation, suggesting a potential for a renewed recovery and a bullish continuation pattern. If the breakout is successful, the coin could reach $0.26 and surpass $0.20. On the other hand, a breakdown below the lower trendline could lead to a drop to $0.105.
3) Toncoin (TON)
TON, the Open Network, is a project by the creators of Telegram Messenger. It aims to provide fast and secure transactions and decentralized services such as storage, anonymous networks, and payments. Despite the current market correction, TON has seen a 45.8% increase in price this week, from $3.3 to $4.8, leading to a market capitalization of $16.8 billion. Currently facing overhead supply at $5.14, TON could possibly test $4.6 for support. If the breakout is sustained, it could lead to a rise to $5.6 and then $6.6.
In conclusion, the near-term trend in the crypto market is bearish, mainly due to the correction in the popular asset Bitcoin. However, the downward momentum seems to have temporarily stopped, with buying interest at the $60,000 level. As withdrawals from the stock market continue to rise, potential buyers will need better confirmation before entering the market. Meanwhile, the decline is being supported by spot ETFs.
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