Key Highlights:
-
Bitcoin exchange-traded products (ETPs) are experiencing strong demand, indicating bullish expectations for continued growth.
-
Despite pullbacks in several prominent altcoins, lower price levels are still attracting buyers.
Bitcoin (BTC) is making efforts to remain above $109,588, showing consistent buying during minor dips. With seven weeks of gains, if Bitcoin’s momentum continues, it could pave the way for further highs. Crypto analyst Carpe Noctom noted that Bitcoin has achieved eight consecutive weekly positive closes only three times, and historically, this leads to higher prices in the subsequent 6 to 12 months.
Institutional investors continue to view Bitcoin as a long-term opportunity, leading to significant investments in Bitcoin ETPs. CoinShares reported on May 26 that Bitcoin ETPs saw inflows of $2.9 billion last week alone, accounting for a quarter of 2024’s total inflows.
While many analysts hold a positive long-term outlook, some caution that Bitcoin might face a short-term retreat. CryptoQuant contributor Crazzyblockk highlighted signs of buyer fatigue and rising volatility, suggesting a potential correction towards $105,000 may be on the horizon.
Bitcoin Price Outlook
Bitcoin bulls are striving to keep the price above $109,588, reflecting that every small dip attracts buyers. The upward trend in moving averages and the RSI nearing overbought conditions indicate a prevailing upward trajectory. Should buyers push the price past $111,980, there’s potential for the BTC/USDT pair to surge to $130,000. The 20-day EMA ($104,886) is a crucial support level; a drop below this could prompt short-term buyers to take profits and possibly lead the price down to the significant $100,000 threshold, which buyers would likely defend.
Altcoin Analysis
Ether (ETH) rebounded from the 20-day EMA ($2,425) on May 25, signaling strong demand at these price levels. The bulls will aim to push above the $2,738 resistance. If successful, the ETH/USDT pair could rise to $3,000. Conversely, failure to hold above the 20-day EMA might suggest weakening bullish momentum, potentially bringing the price down to $2,323 and then $2,111.
XRP (XRP) continues to oscillate between $2.65 and $2, suggesting balance between buyers and sellers. A breakout above $2.48 could signal another attempt to retest $2.65, while a drop below the 50-day SMA could see prices sink to solid support at $2. Buyer defenses are likely to be strong at the $2 level, as a breakdown below could lead to further declines to $1.61.
Overall, the sentiment across the cryptocurrency market remains cautiously optimistic, with primary cryptocurrencies showing signs of resilience despite minor pullbacks and market volatility. Traders should conduct thorough research and analysis in this dynamic landscape.
This article does not constitute investment advice. Readers should undertake their own research before making any investment decisions.
