Adjustment in Cryptocurrency: Restoring Balance and Importance
In the world of cryptocurrencies, the forecast for the rest of the year is painting a somewhat optimistic picture. According to InvestTech, Bitcoin, the OG token, is predicted to see a potential 30% rise, taking its value to around $140,000 by December this year.
However, the near-term technical outlook for Bitcoin is currently evaluated as neutral. Technical analysis shows that Bitcoin recently breached a critical resistance level at $113,000, but short-term pressure is mounting as RSI indicators signal overbought conditions that may slow its rise. The trend remains cautiously bullish, with a possibility of a technical correction ahead.
InvestTech recommends holding Bitcoin in the one- to six-week timeframe. The short-term analysis from InvestTech shows that market participants have consistently increased their purchasing prices for Bitcoin.
Other major cryptocurrencies, such as Binance Coin (BNB), are also expected to see price gains. Technical analysis indicates a bullish trend for BNB continuing through late 2025. However, short-term fluctuations are expected.
Smaller tokens like XRP and Dogecoin, on the other hand, experienced greater declines last week. The price of XRP, for instance, dropped by 11% on Wednesday.
The overall market capitalization of all cryptocurrencies in circulation momentarily exceeded $4 trillion in July. However, the recent downturn in the cryptocurrency market can be viewed as a constructive and essential adjustment.
The price of Bitcoin experienced a significant increase following the favorable indication from the rectangle formation. However, the RSI curve indicates a declining trend, serving as an early indicator of a potential downward trend reversal for the price.
It's worth noting that these tokens frequently exhibit a substantial fully diluted valuation, reaching into the billions. This can make them more susceptible to market manipulation.
On the ETF front, last week's Daily Total Net OI (Delta) stood at $346.36 million, indicating an increase in open contracts for calls. Daily net inflows amounted to $130.69 million on Friday, marking a healthy ETF reading.
However, Bitcoin experienced a decline of approximately 2% on Friday, settling at $116,200. Nearly $400 million in long positions were liquidated in the 24 hours leading into Friday last week, with Bitcoin accounting for $159 million of the liquidated long positions.
Despite these short-term fluctuations, many analysts maintain an optimistic outlook for the long-term prospects of cryptocurrency. The newly launched Pump token from the top memecoin platform has experienced a decline in value following its impressive sale of $600 million worth of tokens.
In conclusion, the technical outlook for major cryptocurrencies remains cautiously optimistic but with signs of near-term volatility and correction risk. Analysts at Citigroup project Bitcoin may reach $135,000 by year-end, but investors are advised to exercise caution and consider the potential risks involved.
TradingView's overall BTCUSD technical analysis for the week ahead gives a 'buy' signal. So, while the road ahead may not be entirely smooth, the overall trend remains optimistic for Bitcoin and the broader cryptocurrency market.
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