The global cryptocurrency market (currently at $1.4T) has gained 7 per cent in 24 hour period ending 9 am IST on Friday. All the top 20 coins (excluding stablecoins pegged to the dollar) have grown at least 3 per cent as Bitcoin (BTC) touched the $35K mark yet again, after a week of bearish signs.
Bitcoin fell below $30K for the first time in 2021 earlier this week, amid concerns regarding clampdown of BTC mining in China, as well indications from banks to enforce a retail ban in the country. This has been compounded by environmental concerns of BTC mining raised by Elon Musk in recent weeks.
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Bitcoin is imitating the Wyckoff pattern and the support levels of $31-32K are critical to negate a bigger drop later this month. Most altcoins continue to exhibit sentiments similar to that of BTC.
However, if BTC breaches the $35K resistance level, it could lead to further growth over the next two weeks as it rallies back to $40-42K levels. Altcoins, including Ethereum (ETH), have the potential to grow disproportionately in such a scenario, extending the bull cycle witnessed in the last 8 months.
Ethereum, the No. 2 cryptocurrency by market cap, is currently touching $2,000 levels, a 55 per cent drop from its all time high of $4,400 earlier this year. ETH is facing its largest options expiry of $1.5B later today (June 25), and may signal a make or break moment, as 75 per cent of options will be worthless if ETH stays below $2,200. ETH continues to enjoy strong support and is expected to rally high over the next month if BTC remains sideways.
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Among other major cryptocurrencies, Dogecoin (DOGE) gained nearly 25 per cent in the last 24 hours, after a deep fall over the last week. DOGE’s future is intertwined with show of support from Elon Musk’s Twitter handle, which has remained rather mute this month. India based Polygon (MATIC), currently #16 by market cap, is expected to regain its $2+ levels if BTC breaks $42K level.
Looking forward, weekends have shown an inclination to be in the red recently. We expect a good recovery from Monday onwards. BTC’s price movements will continue to determine the overall shape of the market in the medium term.
DISCLAIMER: Views expressed are the writer's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.
