Bitcoin Reaches Record High While Other Cryptocurrencies Face Resistance Levels
Summary:
Bitcoin hits record highs due to increased investments from Bitcoin whales and traditional finance companies. Cryptocurrencies like Ether, BNB, and Solana are witnessing resistance levels, and a decline could lead to stagnation or a dip, while surpassing these levels could indicate a retreat from the corrective phase. Nevertheless, uncertainty persists in the short-term as Fidelity Digital Assets considers Bitcoin to be trading at its fair value. All investments carry inherent risks underscoring the need for independent research before decision-making.
Bitcoin (BTC) has recently achieved an unprecedented high, and the ensuing stability indicates that the bulls are not in a hurry to exit the market. Santiment's report supports this by stating that to date in 2024, Bitcoin whales, individuals with holdings between 1,000 to 10,000 Bitcoin, have amassed an additional 266,000 BTC. Traditional finance firms have also been investing in Bitcoin through spot Bitcoin ETFs. Analyst Eric Balchunas from Bloomberg shared that two US-based financial advisors each invested $20 million into Fidelity Wise Origin Bitcoin Fund, which trumped the previous record of a $17 million investment in BlackRock's iShares Bitcoin Trust.
In spite of analysts' optimism for the long term, short-term predictions are less confident. Fidelity Digital Assets opines that Bitcoin's "cheap" days are over and that it is currently trading at a fair price. Chris Kuiper, Fidelity's Director of Research, stated that Bitcoin is in the middle of its market cycle. He postulated a significant portion of the gains will likely be seen in its latter stages.
Notably, Bitcoin and altcoins need to surpass significant resistance levels to indicate a retreat from the corrective phase. Here's an analysis of the top 10 cryptocurrencies.
Bitcoin recently rose above the 20-day exponential moving average (EMA) at $65,855 on April 22, only for the recovery to be stalled by the bears at the 50-day simple moving average (SMA). This indicates equilibrium in demand and supply. A drop below the 20-day EMA could further dip the BTC to $60,775. Contrarily, a rise above the 50-day SMA signals that lower levels are appealing to buyers, driving the BTC towards its next target of $73,777.
Meanwhile, Ether (ETH) attempted to rise above the 20-day EMA but found resistance from the bears, thereby causing a downside risk for the ETH, possibly pushing it to the critical support at $2,852. However, an increase could denote reduced selling pressure and potentially drive up the ETH price to $3,679.
BNB (BNB) has a vital resistance level at $635. A sharp decline from this level could potentially pull the BNB to $495. Overcoming this resistance could significantly enhance investor confidence in BNB, propelling it to $775.
Similarly, Solana (SOL), hit the resistance level of $162 and a sharp decline from here can stagnate the SOL between $162 and $126. However, a break above $162 could denote an end to the corrective phase and potentially boost SOL to $205.
Multiple other cryptocurrencies such as XPR, Dogecoin, Toncoin, Cardano, Avalanche, and Shiba Inu similarly face significant resistance levels. They stand to make marked gains if they can surpass these levels. However, a sharp decline can lead to them hitting new lows.
It's critical to note that this data does not provide investment advice or recommendations, and readers should research independently before making investment decisions, as each carries inherent risks.
Published At
4/24/2024 9:20:00 PM
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