This week will be remembered by traders for powerful jerks of BTC bulls, which managed to overcome the resistance around $26,000 twice in 5 days and form a number of significant supports in the range of $24,400 – $25,000. Of course, the bullish trend is clearly visible not only in the flagship market. So all altcoins from the TOP-10 list on CoinMarketCap, without exception, end the trading week “in the black”. At the same time, the dominance of buyers is maintained despite market uncertainty and, apparently, stimulates new players to enter the market, as evidenced by an increase in the number of BTC wallets with a non-zero balance by more than one and a half million pieces in 5 trading days.
As for the fundamental reasons for the bull run in the cryptocurrency market, here the main “newsmaker” is traditionally the US Federal Reserve System (FRS). Large-scale inflation and a partly synthetically provoked banking crisis in the country, which led to the bankruptcy of crypto-oriented, Silvergate Bank, Silicon Valley Bank and Signature Bank, stimulated the country's leadership to increase the intensity of “dollar stamping.” And, perhaps for the first time in history, a number of institutional investors facing a crisis decided to seek stability in bitcoin. That is, unlike the same black Thursday of 2020, the capitalization of the crypto market began to grow against the backdrop of the financial crisis, and not vice versa. What impact has this had on the market? Let's get into the details.
The powerful bull season has become an occasion for completely different and rather radical forecasts regarding the foreseeable future of bitcoin. For example, trader and analyst Altcoin Sherpa believes that BTC could reach a new high above $30,000, but after that, the main digital asset is expected to fall by about 50% to a new low near $15,000. The community news feed is overflowing with forecasts for “Bitcoin at $250,000” and “BTC at $1M.” However, it is only known for certain that the flagship seems to have managed to overcome the resistance at $25,000 that arose in August 2022 and gain a foothold above it without losing all the strength of buyers.
It is noteworthy that both the RSI and the MACD were actually “predicted” even before the trend crossed the MA50 in a northerly direction. At the same time, the strong position of the relative strength index (at the time of writing, its indicator is 74) is an obvious sign of rising liquidity of the asset. According to Matrixport head of research and strategy, Marcus Thilen, bitcoin now has every chance to rise to the next important technical level, which is at $28,000. However, the traditional decrease in trading volume over the weekend could cause a correction below $25,000.
Once the price of crypto-silver broke the $1,600 barrier earlier in the week, the asset was only once forced back to support at $1,585 and successfully rebounded from it. At the same time, already on Tuesday, the bulls tried to gain a foothold above $1,700, but they met with resistance near $1,750 and were thrown back to the range of $1,615 - $1,690 by the end of the week. It wasn’t until Friday that buying pressure triggered a second battle over the $1,700 level, and at the time of writing, ETH bulls are storming positions around $1,730. The trend channel continues to be up, while there is still strong resistance around $1,700.
On the four-hour chart, we see a clear hint of the MA200 crossing the northward moving MA50, which is quite a powerful bullish sign. At the same time, the RSI of the coin continues to increase, indicating the active interest of buyers and the growth of the liquidity of the asset. But in the event that ETH fails to break through the $1,745 level before the start of next week, we may see another fall in the price of crypto-silver. In the short term, the trend line and $1,695 price level is likely to be the first support for the market. However, there is no talk of an uncontrolled fall yet.
The increase in SOL trading volume over the past 24 hours indicates an outstanding bullish trend. The asset is currently trading at $20.55 despite a short-term drop to $18.60 during the week. With the bulls now taking over, it is expected that the price of the altcoin could break the $20.90 barrier as early as today. The actual increase in the price of SOL for the week amounted to more than 20%. Despite a 42% decline in trading activity, the coin’s market capitalization rose by 4.03%, bringing its market share to 0.69%. The price of SOL has risen steadily over the past 36 hours and is expected to continue rising throughout the day.
Notably, the 4-hour moving average is still at a much lower price level of $19.78. The relatively high level of volatility suggests that price fluctuations in the following hours will also be high. As a result of consistent buying activity over the previous eight hours, the RSI rose to 58 and continues to rise. Now the price is moving towards the $20.90 resistance point. The bullish rally may intensify in the coming hours. However, as the price approaches $21, a correction may also occur.