Cryptocurrencies are experiencing a frenzy, breaking free from months of muted performance and range-bound markets. Bitcoin has reached new all-time highs, potentially pulling altcoins along in its wake. This surge comes as financial institutions increasingly enter the crypto space, buoyed by more lenient regulations and adding solid demand to digital assets.
Traditional investors are diversifying into cryptocurrencies through ETFs, with recent launches opening doors for assets like Solana. This shift occurs against a backdrop of uncertainty in traditional markets, with the Federal Reserve's independence under scrutiny and market participants seeking alternatives to the US dollar.
Technical Analysis Highlights:
- Bitcoin's daily charts show strong upward momentum, with failed bearish patterns often signaling reversals. After surpassing $113,000, Fibonacci extensions suggest potential resistances at $120,000 and $135,000.
- Intra-day charts reveal range-bound conditions that built up Volume-At-Price at all-time highs, setting the stage for new levels. The RSI indicates overbought conditions, which may temporarily slow buying flows.
- The crypto market cap is nearing its December 2024 highs, with Bitcoin's rally possibly lifting altcoins like ADA, SUI, and XRP.
Bitcoin's latest all-time high has liquidated many bearish bets, with $600M in liquidations recorded. However, with a strong appetite for risk and technology investments, the rally may continue.
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