Leading crypto strategists project optimistic continuation patterns across digital assets over the coming months. Besides bullish technical setups, on-chain metrics indicate potential upside ahead. Michaël van de Poppe, a top crypto analyst, predicts a surge towards a $2 trillion market cap in the coming months.
This forecast follows a period where dips were aggressively bought, showcasing a robust market sentiment. Moreover, the market’s resilience is further supported by recent price action, with BTC and ETH witnessing notable gains.
Van De Poppe’s chart analysis employing Japanese candlesticks, reveals a mix of bearish and bullish signals. Key indicators, like red and green blocks, mark previous downtrends and uptrends, respectively. Additionally, a Fibonacci retracement tool highlights significant support and resistance levels, with the price consolidating around the crucial 0.618 ‘golden ratio’. This consolidation, along with the price being above a moving average, hints at a short-term bullish momentum.
However, the volume indicator and RSI (Relative Strength Index) provide a more nuanced view. The volume spikes suggest significant trading activity, while the neutral RSI indicates neither overbought or oversold conditions, presenting a balanced market outlook.
Santiment’s analysis adds another layer to this narrative. It focuses on the supply dynamics of Bitcoin, Ethereum, and Tether on exchanges. The data reveals a low supply of BTC and ETH, suggesting reduced selling pressure and a potential bullish sentiment among holders. Conversely, the sharp increase in Tether’s supply indicates a readiness among investors to trade, possibly capitalizing on market opportunities or seeking stability amid volatility.
Annotations on the chart further elucidate this trend. Nearly 30% of USDT’s available supply has returned to exchanges, coinciding with BTC’s dip below $25K. This could indicate readiness among investors to capitalize on market movements. Hence, the low exchange supplies of BTC and ETH might suggest a reduced risk of major sell-offs, painting a bullish picture for these cryptocurrencies.
Significantly, the correlation between Tether’s influx and Bitcoin’s price, currently at $43,420.14, suggests a market poised for strategic moves. Ethereum, valued at $2,315.53, also reflects this trend, with both assets showing a positive 24-hour change.
Consequently, the market appears at a crossroads, with indicators pointing towards both caution and optimism reflecting the dynamism of the crypto market, steadily advancing towards an anticipated $2 trillion valuation.