Bitcoin, Ethereum dips after sideways consolidation, Dogecoin rally continues

Crypto market overview: Bitcoin and Ethereum have showcased strong consolidation movement in charts with Bitcoin touching the high of $71,535 and Ethereum crossing the $3,600 mark at the same time. After the consolidated movement, both leading cryptocurrencies are currently exhibiting a steep decline in their prices due to short-term profit booking. 

Contrary to these tokens, Dogecoin continues its positive momentum and surged more than 6 per cent in the last 24 hours. This marks the weekly returns of the memecoin over 28 per cent. 

The Crypto Fear and Greed Index reflects a one-point dip, hovering at 79 points in the market, mostly driven by the sideways consolidation of the leading tokens. 

Crypto Fear and Greed Index | Image credit: Alternative.me

Highlighting the BTC consolidation over the $70,000 mark, the CoinDCX Research Team said, “Both BTC and ETH maintained their momentum in the crypto market as positive inflows into BTC ETFs resumed. Technically, BTC is still consolidating sideways in lower timeframes, providing opportunities for strong tokens to surge. BTC remains above the key level of $69,000, signalling positivity.” 

“ETH regained momentum and reclaimed the 20EMA D, yet it still lags behind BTC. For a significant move, ETH needs to surpass $3,650. The ETH/BTC pair is hovering near a major support level, suggesting a potential boost for ETH and alts if it rises from here,” added CoinDCX.

Talking about the positive momentum in the market with the majority of leading cryptocurrencies trading in the green, Parth Chaturvedi, Investments Lead, CoinSwitch Ventures said, “On the market front, the top 10 crypto assets by market capitalisation have traded in the green in the last 24 hours, with DOGE leading the gains. Technical analysis shows that DOGE’s performance could be attributed to a prolonged reversal, with a flattened-out bottom. We can expect strong support around $0.15 with resistance at $0.21.” 

Chaturvedi also shares market predictions of Bitfinex according to which BTC could reach $1,20,000 by the end of 2024. Chaturvedi said, “According to a prediction from Acheron Trading, BTC could attain gains as high as 150 per cent during the current bull run. On the other hand, Ethereum has reached a pivotal achievement by surpassing one million active validators on the network. The second largest crypto by market capitalisation underwent a transition to proof-of-stake in September 2022.” 

According to data tracked by 21.co, $1.08 billion worth of Treasury notes have been tokenized through public blockchains till now. The tally has surged almost tenfold since January 2023 due to increased global interest rates.

Positive inflows in Bitcoin ETFs

Citing Spot ETFs’ net positive inflows as the reason behind Bitcoin’s upward movement, Vikram Subburaj, CEO, Giottus said, “Bitcoin is trading above $70,500, as spot ETFs witness net positive inflows this week. Crypto’s fear and greed index has breached 80 (extreme greed) indicating that the market is gearing up for a potential rally, leading up to the Bitcoin halving. A strong consolidation here can lead Bitcoin to test key resistance at $73,000 by Monday.” 

“Meanwhile, a few altcoins – ETH, SOL, XRP – have registered 2-3 per cent gains even as the overall market has grown by 1 per cent. As long as Bitcoin stays above its 9-Day EMA of $68,900, altcoins should not witness significant pullbacks. Key upward targets for altcoins: Ethereum ($3,600), BNB ($600), Solana ($195), XRP ($0.65), Cardano ($0.67), and Avalanche ($58),” added Subburaj. 

Bitcoin has displayed mostly sideways movement, consolidating around $70,400. However, there has been a decrease in Bitcoin's trading volume, dropping by about 20 per cent. 

Marking the next resistance level for the leading cryptocurrency, Edul Patel, CEO of Mudrex, said, “The next resistance level for Bitcoin is anticipated at $71,855, with the next support level at $69,231. Ethereum has similarly experienced sideways price action, currently hovering around $3,550. With approximately $15 billion worth of options set to expire, both Bitcoin and Ethereum are expected to see increased volatility. Overall, the market sentiment remains extremely greedy.”