Altcoin
Weekly Bottom Line on Bitcoin, Ethereum and Ripple: June 7, 2024
The cryptocurrency market has not been the same for every asset. Bitcoin (BTC) has been performing well, but top coins like Ethereum (ETH) and Ripple (XRP) are still struggling. The chances of altcoins picking up pace and strengthening depend on Bitcoin’s performance.
Identifying the altcoin season is important as it can estimate when and how much growth might occur.
The potential of an Altcoin season
Juan Pellicer, senior researcher at IntoTheBlock, says multiple signals dictate the arrival of altcoin season.
“In previous market cycles, altcoin seasons often begin with a prolonged downtrend BTC dominance, indicating a change in market sentiment towards altcoins. While this trend is a useful guiding signal, identifying potential winners in the next altcoin season requires analysis of advanced on-chain metrics,” said Pellicer.
“For example, the average time an asset is held by its holders can indicate its resilience. Assets held longer by investors may experience stronger price increases during bull markets. Furthermore, the cascading data relating to whale behavior is invaluable,” he further added.
Secondly, the growth of the market also depends on the overall demand for cryptocurrencies. The recent increase is a signal that confirms this question. However, stability is the next concern. Expanding on the same, Julio Moreno, Head of Research at Cryptoquant, told BeInCrypto,
“Stabilization and then a slight increase in demand for Bitcoin from permanent holders and large holders (whales). This indicates higher demand growth this month compared to April. Permanent holders have purchased 74,000 Bitcoins in the last 30 days, while demand from whales is growing 5% month-on-month. See second and third tables. We still need to see greater demand growth from these investor groups for the price rally to be sustainable.”
Demand from permanent Bitcoin holders. Source: CryptoQuant
Therefore, these insights are crucial when looking for guidance on the altcoin season.
Price Prediction for BTC, ETH, XRP: Growth Likely, Albeit Slow
Bitcoin (BTC)
Bitcoin price surpassed market expectations as it recorded 5% growth during the week. This increase brought the trading price to $71,160, close to the critical resistance of $71,800. The broader market signals are still bullish, with BTC moving within a flag pattern, indicating a 45% rally on the cards.
However, the more practical prospect is a rise to the current all-time high of $73,650. Violating it would establish a new ATH for BTC.
To know more: Bitcoin Halving History: Everything You Need to Know
On the other hand, the barrier of $71,800 has been intact for almost three weeks now. Failure to break this level could put a brake on the rally, leaving Bitcoin’s price to fall to $68,500.
Ethereum (ETH)
While Etherueum price is not behaving bullishly at the moment, it is sustaining the rally noted last month. The altcoin broke out of the descending wedge and at one point rose to $3,980, only to soon slide.
ETH struggles to close above the 61.8% Fibonacci retracement of $3,829. This level is also known as the bull run support floor and breaking above it would push the $4,000 higher.
To know more: Who is Vitalik Buterin? An in-depth look at the co-founder of Ethereum
But if the price of Ethereum fails to secure this level as support, a decline cannot be ruled out. ETH could then drop on the daily chart to test support at $3,695 or the 50% Fib line at $3,582.
Ripple (XRP)
XRP price performed disappointingly at $0.52. The altcoin is forming an ascending triangle pattern and is waiting for a breakout. This bullish chart formation features a horizontal resistance line and a rising support line. It indicates increasing buying pressure, suggesting a potential break above the resistance level.
However, this theoretical increase is yet to be observed as, at the moment, the altcoin has just closed above the 23.6% Fibonacci retracement. This is a good sign since this Fibonacci level is known as the bear market support level. Ensuring this would avoid a further decline in the XRP price.
To know more: Everything you need to know about Ripple vs SEC
But losing it could send the altcoin to $0.50 or lower, until it tests the critical support of $0.47, completely invalidating the bullish thesis.
Disclaimer
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