The Bitcoin market is in the middle of significant weekly volatility after last week’s breakout and remaining above the 200 WMA for the past few days. However, Bitcoin’s daily volatility has significantly reduced in the past four days after experiencing a strong resistance level of around $28k. Money flow has begun pouring into high-cap altcoins, with traders and analysts forecasting mid-cap altcoins could spike soon.
The social media sentiment on altcoins – like XRP, Cardano (ADA), and Dogecoin (DOGE) – is on the rise. Profit taking in the Bitcoin market is expected to increase forced liquidation on Ethereum among other altcoin holders.
Notably, crypto liquidation data from Coinglass shows that $26 million in Ether and $22 million in Bitcoin have been rekt from the top two crypto and digital assets in the past 24 hours. The XRP, Cardano (ADA), and Dogecoin (DOGE) markets have recorded liquidations of about $18M, $3M, and $2M, respectively, during the same period.
Notably, crypto liquidation is a significant aspect considered by most analysts when plotting the Bitcoin and crypto market. Moreover, Bitcoin and some crypto assets are a derivative of pure mathematics. Some offer inflationary limits amidst the ongoing banking crisis caused by the lack of faith in the traditional banking sector.
As more fiat believers fear the rising inflation caused by bank runs, Bitcoin enthusiasts continue to stash more in anticipation of near-future bull markets. According to popular Twitter user @CryptoKaleo, who has made a global reputation through crypto trading, Bitcoin price could be gearing up for similar moves in 2019, amidst the third Federal Funds Rate release of 2023.
“Plenty of similarities to the current range and where we were in the Spring of 2019 after BTC broke out above the HTF bear market downtrend. A bit of chop here is expected before the real send begins,” crypt analyst Kaleo noted.
Source: https://coinpedia.org/altcoin/altcoins-prepare-for-massive-rally-bitcoin-poses-similar-narrative-as-2019/