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Bitcoin Prices Forecast: Surging 25%, Is BTC Poised for Further Dominance?
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Crypto Fear & Greed Index sways towards 'Greed', hinting at increased BTC buying activity amidst halving predictions.
Key Insights
- Bitcoin surges 25% in a month, with most gains during U.S. trading sessions.
- Approval of a U.S.-listed spot bitcoin ETF could significantly boost mainstream crypto investments.
- The global cryptocurrency market cap holds strong at $1.3 Trillion, growing 28.7% YoY.
- Bitcoin’s market cap indicates its dominance, holding 51.3% of the total cryptocurrency market.
- The Crypto Fear & Greed Index reflects a “Greed” sentiment, suggesting potential buying activity.
Quick Fundamental Outlook
In the midst of a global crypto bull run, Bitcoin (BTC/USD), the world’s leading cryptocurrency, has been trading at $34,122.66 with a slight drop of 0.62% in the last 24 hours, according to CoinMarketCap data.
Over the past month, Bitcoin has witnessed a remarkable surge of 25%. Notably, Matrixport, a well-regarded crypto services provider, highlighted that a majority of these gains materialized during U.S. trading sessions.
This trend underscores the growing enthusiasm among U.S. institutional and individual investors, largely driven by the speculation of an imminent approval of a U.S.-listed spot bitcoin exchange-traded fund (ETF).
ETFs, which are traded on exchanges and mirror the performance of their underlying assets, offer a cost-effective way for investors to delve into the cryptocurrency realm without directly purchasing the digital assets.
The potential approval of a bitcoin ETF is widely anticipated to attract significant mainstream investment into the crypto sector.
Cryptocurrency Market Cap Charts
Both Bitcoin and the broader cryptocurrency market are experiencing a significant uptick, with their market caps surging to unprecedented levels. This surge is not only driven by increased institutional and retail interest but also by technical patterns observed in their price charts.
Notably, both Bitcoin and the overall cryptocurrency market have broken out of consolidative triangle patterns, which many traders and analysts interpret as a bullish signal.
Global Cryptocurrency Market Cap
The global cryptocurrency market cap, on the other hand, stands at an impressive $1.3 Trillion. This figure has seen a minor dip of -0.01% in the last 24 hours but showcases a robust year-on-year growth of 28.7%.
Meanwhile, Stablecoins have also made their presence felt with a market cap of $124 Billion, accounting for 9.53% of the total crypto market cap. The breakout from these triangle patterns suggests that there might be further room for growth.
Bitcoin Market Cap
Bitcoin’s market cap has soared to $665 Billion, reflecting its dominant position with a 51.3% share of the total market.
This rising market cap, coupled with Bitcoin’s dominance, signals potential further growth and consolidation of BTC’s position in the market, especially if the anticipated ETF gets approved.
Crypto Fear & Greed Index
The Crypto Fear & Greed Index, a popular metric used to gauge the market’s emotional state, has shown notable fluctuations in recent times. Currently, the index stands at 72, indicating a sentiment of “Greed”.
This is a notable increase from yesterday’s reading of 66, which also represented a “Greed” sentiment.
Looking back, the index presented a more balanced view with a “Neutral” score of 50 just last week, and similarly, last month’s reading was also “Neutral” at 47.
The Crypto Fear & Greed Index, when leaning towards “Greed”, often suggests increased buying activity, potentially driving up Bitcoin’s price.
Bitcoin Price Prediction
Bitcoin (BTC/USD) has been trading at $34,122 with a slight drop of around 0.50% in the last 24 hours, according to CoinMarketCap data. Analyzing the 4-hour chart, the pivot point stands at $34,700. The cryptocurrency faces resistances at $35,225 and $36,071.
Meanwhile, Bitcoin finds immediate support at $33,876, which coincides with the 38.2% Fibonacci retracement level. Deeper supports align at $32,406 (50% Fibonacci level) and $31,801 (61.8% Fibonacci level).
The RSI is currently at 76, signaling an overbought condition, which suggests that the bullish momentum may be reaching its peak. The price is significantly above the 50 EMA of $30,775, indicating a recent bullish trend.
However, the appearance of neutral candle patterns like Doji and Spinning Top on the 4-hour chart hints at market indecision. Such patterns often precede bearish reversals, indicating that a correction might be imminent. Investors should watch for potential retracements to the mentioned Fibonacci levels.
Conclusion: The overall trend seems to tilt bearish below the $34,700 mark. In the short term, Bitcoin may retrace and test key support levels before making its next significant move.
About the Author
Arslan Aliauthor
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.
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