After the approval of the Ethereum Exchange Traded Fund (ETF) by the United States yesterday, the cryptocurrency market experienced increased volatility on Friday. BTC dropped to a low of $66,400, close to the key support level of $65,000, before rebounding after the opening of the U.S. stock market. It then continued to rise and reached a daily high of $69,285 in the afternoon. As of the time of writing, BTC’s trading price is $68,836, with a 24-hour increase of approximately 2.38%.
ETH surged from $3,100 on Monday to $3,950 on Thursday, with a gain of 27.5%. However, its price experienced significant fluctuations after the approval of the ETF. As of the time of writing, ETH’s trading price is $3,705, with a 24-hour decrease of 1.65%. Charts released by Secure Digital Markets analyst show that ETH futures liquidation volume soared to nearly $150 million, with long positions accounting for $100 million, which is twice the liquidation volume of BTC.
Altcoins performed strongly this week, with all tokens ranked in the top 200 by market capitalization, except for 30, showing an upward trend. Ondo (ONDO) had the highest increase of 19.2%, followed by Core (CORE) with a gain of 17.6%, and Zcash with a gain of 13.2%. Metis had the largest decrease of 4.2%, followed by Illuvium (ILV) with a decrease of 3.7%, and Bonk (BONK) with a decrease of 2.4%.
The total market capitalization of cryptocurrencies is currently $2.56 trillion, with Bitcoin’s market share at 53.2%.
In the traditional market, major U.S. stock indexes opened higher throughout the day. The S&P 500 and Nasdaq indexes maintained positive momentum before the closing, while the Dow Jones index fell towards the end of the trading session. At the end of the day, the S&P 500 and Nasdaq indexes rose by 0.70% and 1.10% respectively, while the Dow Jones index remained unchanged.
$3,800 is a crucial level for ETH. Its increase this week exceeded the one-year gain of the S&P 500 index. Cryptocurrency trader Matthew Hyland believes that it is crucial for Ethereum to “hold” the support level of around $3,800 to sustain its upward trend.
Blockchain Mane indicates that the “resistance targets for ETH are $5,080.60 and $6,231.83”. If three long-term indicators continue to flash, ETH may surge and retest the $5,000 price level that it failed to reach in 2021.
Mane states that ETH is showing a “bullish trend” along the parabolic and Fibonacci retracement indicators, with three distinct stages: the first stage, the second stage, and the third stage. “The parabolic indicates a continued upward trend, especially after breaking the descending wedge.”
Market analyst Caleb Franzen believes that if Bitcoin can break through $69,500, it is very likely to climb above $72,000 in the short term. He stated on the X platform, “If Bitcoin breaks this short-term structure (1-hour candle), assuming it will set a new short-term high above $72,000.”
However, several analysts warn that further consolidation is expected due to the strong resistance level at $71,500.
Market analyst Rekt Capital states, “Since the end of the ‘danger zone’ after Bitcoin’s halving, Bitcoin has broken $71,500. However, around $71,500 is the high point resistance level of the macro accumulation range and the starting point of the Bitcoin downturn.”
He concludes, “Consolidation is still ongoing, and historical experience indicates that consolidation will continue for several weeks, with prices ranging between $60,000 and $70,000.”
Michaël van de Poppe, founder of MN Trading, also warns that the price may drop to a low of $60,000, but he believes that this provides a good opportunity for Dollar Cost Averaging (DCA).
Michaël van de Poppe states on the X platform, “Bitcoin is consolidating and is within a range. This consolidation may last longer, and I suspect we might even see $61-63,000. The rotation from Bitcoin to Ethereum leads to a longer sideways period. It’s okay, just DCA.”
In the long term, market analyst Braver Crypto maintains his position that Bitcoin will peak within the range of $180,000 to $210,000 in this cycle.
This is consistent with the prediction of Geoff Kendrick, Head of Emerging Market FX and Cryptocurrency Research at Standard Chartered Bank, who stated in a recent report that Bitcoin’s price could rise to $150,000 by the end of 2024 and reach $200,000 by 2025.
Author: BitpushNews Mary Liu