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Position gone? Price also!! In the current market, there is no shortage of money, what is lacking is opportunity! How to deal with extreme markets?
Recently, the US Securities and Exchange Commission (SEC) approved the launch of a spot Bitcoin exchange-traded fund (ETF) by iShares, which attracted a lot of attention in the market. With this approval, investors rushed into the market, causing the price of Bitcoin to soar rapidly.
iShares is one of the world's leading asset managers, and the launch of the spot Bitcoin ETF provides investors with a convenient way to participate in the Bitcoin market. Through this ETF, investors can hold Bitcoin directly and enjoy the benefits of its price increase without owning actual Bitcoin.
The SEC's approval is an important milestone for the cryptocurrency industry. Bitcoin ETFs have long been highly anticipated by the market because they allow more traditional investors to enter the digital asset market. However, the SEC has been cautious about Bitcoin ETFs in the past, mainly due to their highly volatile nature and regulatory concerns.
With SEC approval, spot Bitcoin ETFs will become a new investment option, providing investors with more diversified ways to invest. This approval is also seen as a recognition of the Bitcoin market, further strengthening Bitcoin's position in the investment community.
However, it is worth noting that there are still certain risks in the Bitcoin market. Due to its highly volatile nature, the price of Bitcoin can fluctuate significantly, and investors need to be cautious. At the same time, regulatory issues also need to be closely watched as this could have an impact on the Bitcoin market.
Bitcoin rose sharply by 10.7% following the SEC's approval of the iShares spot Bitcoin ETF. This sudden buying pressure caused BTC to break through the resistance level that had been acting as a support line for about 95 days. However, there are some doubts about the sustainability of this upward momentum.
The news of the approval of the iShares spot Bitcoin ETF sent the price of Bitcoin higher
With the news of the SEC's approval of the iShares spot Bitcoin ETF, the price of Bitcoin soared, breaking the long-term resistance trend line and rising from $27,143 to $30,127. This resistance level is a significant obstacle to the uptrend over the past three months, helping buyers put pressure on prices.
The news turned out to be fake, causing the price to fall back from above $30,000. As a result, the price of the largest cryptocurrency falls, forming a long-tail green candle on the daily chart. As of the time of writing, BTC is trading at around $28,198 and trying to stay above the trend resistance line that has been breached recently. If this level can be held, it is possible that the price will test the $32,000 area with a 13.5% increase.
Will the BTC price drop to $25,000?
Despite the optimistic short-term outlook, given the speculative nature of recent price increases, investors need to be cautious about a possible downturn. If the price falls below this trend resistance line after rising after the news is released, Bitcoin's losses may escalate, and this surge may still be a "bull trap".
In this case, selling pressure is expected to increase and the correction process to prolong. During a possible downturn, the price may fall back to the psychological support level of $25,000.
Furthermore, price above the 20, 50, 100, and 200-day Exponential Moving Average (EMA) and Relative Strength Index (RSI) above the 60 level on the daily timeframe are positive indicators reflecting bullish momentum. Market.
Ethereum (ETH) potential rally is imminent, altcoins or new opportunities
Since the success of Bitcoin fueled the rise of the cryptocurrency market, Ethereum has been in the spotlight as its main competitor. However, in recent times, the price of Ethereum has been in a downtrend, raising concerns about its future direction. Nevertheless, many experts believe that Ethereum is at a potential rebound point that could usher in new opportunities.
First, what are the potential bounce points? In simple terms, a potential rebound refers to the likelihood that the price will rise in the short term after a period of decline. This usually occurs when the market is oversold, when investors sell an asset excessively, causing its price to be low. For Ethereum, the current price is already low and has not shown a further downward trend in the past few weeks, which leads to believe that a rally is coming.
Second, we need to focus on whether altcoins can be a new opportunity for Ethereum to rally. Altcoins refer to other digital assets that imitate or borrow from mainstream cryptocurrencies such as Bitcoin or Ethereum. Over the past few years, the number of altcoins has been growing, and there are some altcoin projects that have some potential. When the price of Ethereum falls, some investors may turn their attention to these altcoins in search of larger profit opportunities.
However, we need to be clear that altcoins are not an opportunity that all investors should chase. While some altcoins may have some innovation and potential, there are also a lot of risks and uncertainties. Before choosing to invest in an altcoin, investors should conduct thorough research and due diligence to evaluate factors such as their team, technology, practical application, and market prospects.
Ethereum is likely to rally relative to Bitcoin in the near future, and while the timing of Ethereum's outperformance is unclear, there are signs that Ethereum is about to recover. It's time for enthusiasts to start paying attention.
Sherpa noted that Ethereum could still fall to the level of 0.05 BTC before reversing the downtrend. However, he sees the current price as an accumulation area and recommends "expanding" altcoin positions.
This view contrasts with Bitcoin's dominance in 2023. With altcoins significantly underperforming Bitcoin this year, contrarian traders like Sherpa believe that mean reversion is likely.
Other market analysts have offered a different outlook for the bottom of the Ethereum price. But momentum and sentiment indicators may support a trend reversal scenario.
Of course, the crypto market is notoriously difficult to predict. Ethereum is likely to yield further before regaining its footing.
Nevertheless, there was a discussion about the possibility of an altcoin recovery. While risks remain high, an improvement in the broader macro environment could push stocks higher.
For now, the Ethereum community can only wait and see if Sherpa's rebound argument becomes a reality. But his stance suggests that some professional traders are becoming increasingly optimistic after months of painful losses.