Key Points
- Bitcoin’s price has stabilized above $61K, with a total cryptocurrency market cap above $2.4 trillion.
- CryptoQuant warns of a potential major correction if Bitcoin’s price consistently falls and closes below $56k.
The total cryptocurrency market cap has made a comeback, exceeding $2.4 trillion as Bitcoin’s price remains steady above $61K. The speculation surrounding altcoins, driven by the imminent listing of spot Ethereum ETFs in the United States, has impacted Bitcoin holders significantly.
There has been an increase in institutional investors, led by VanEck, who filed for a Solana ETF on Thursday. These investors are looking to diversify their crypto portfolios into the altcoin industry. As a result, Bitcoin’s dominance has been forming a reversal pattern that could trigger the much-anticipated altseason.
Bitcoin Price Level to Keep an Eye On
Bitcoin’s price has been fluctuating around the lower border of the horizontal macro channel for the past four days. After bouncing back from below $59K earlier this week, Bitcoin’s price has stabilized above $61K, but the direction remains unclear.
Bitcoin’s price could potentially rally towards $66K in the upcoming weeks, having rebounded from the $60K mark several times in the past four months. The supply of profitable Bitcoin addresses has dramatically decreased as the daily Relative Strength Index (RSI) continues to hover around the oversold level.
CryptoQuant’s on-chain data analysis suggests that Bitcoin’s price could rebound toward a new all-time high due to reduced selling pressure from miners.
CryptoQuant has advised crypto traders to remain cautious if Bitcoin’s price falls and consistently closes below $56k. They base this warning on the Metcalfe Price Valuation Bands and conclude that a crypto bloodbath will occur if Bitcoin’s price drops below $56K.
The Larger Picture
The cryptocurrency market has been in a state of uncertainty due to increased midterm pessimism. More than two months since the fourth Bitcoin halving, Bitcoin’s price has yet to experience the historical parabolic rally.
A well-known crypto analyst, Mags, predicts that Bitcoin’s price is on its way to $200k in the upcoming quarters based on historical performance.
US-based spot Bitcoin ETFs have started accumulating more coins after a period of considerable selling pressure. The demand for Bitcoin and other digital assets will remain high among institutional investors and retail traders due to poor monetary policies implemented by most central banks.
The forthcoming United States elections are expected to trigger crypto-bullish sentiments. Furthermore, anticipated interest rate cuts in the United States will likely push more investors into the Bitcoin and altcoin market amid the ongoing macro bull run.
