- Bitcoin tags $90,000 US overnight
- US Exchange Traded Fund (ETF) IBIT reaches new record for daily volume
- Altcoin Analysis: POPCAT and BRETT
It feels like Groundhog Day at the moment, as Bitcoin continues to set new all-time highs this week. Not mad about that at all!
Outside of Bitcoin, memecoins are leading the charge when looking at how the broader altcoin market is performing relative to Bitcoin. This may come as no surprise, as they have held momentum quite well as a collective even when market conditions were not as favourable as they are now.
Bitcoin’s Show
That being said, Bitcoin dominance has yet to reverse, which does indicate to me that a full blown alt season is still to come.
The above chart shows how much of the Total market cap is in Bitcoin. When this metric has trended lower in the past, we have seen altcoins start to move to the upside with more conviction during bull markets conditions. This is when I believe we will see altcoins form multi-week trends.
US ETFs Set a New Record Overnight
Blackrocks IBIT Bitcoin ETF product has surpassed $5bn US in trading volume overnight, as Bitcoin reached $90,000 US. While this is a tremendous feat, we are yet to see if the total net effect was still buying.
Inflation Data Lands as Expected
Overnight, the US Consumer Price Index (CPI) measurements have landed as forecasted, with the month-on-month figure sitting at 0.2% and the yearly figure at 2.6%.
In my opinion, that is great news, as we are likely to see continued easing in monetary policy conditions in the months to come. Inflation data landing as expected is helpful in making that a reality in the near future.
Fear and greed currently reads 85 – Extreme greed.
Related: Analysts Encouraging Assessment: Still Time to Invest in Bitcoin
Bitcoin – BTC
We are now nearing the expected six-figure market price for Bitcoin at almost some point. Below are two possible scenarios that could occur next.
Bullish Scenario
Should the bulls remain in control for the remainder of the day, I would anticipate now having tagged the 0.618 Fibonacci level, that we can move to the next Fibonacci extension levels higher. $95,000 would be the first target.
Bearish Scenario
Failure to get interest from the bulls at these levels could see new lows under $85,000.
Related: Novogratz Forecasts Bitcoin to Reach $500K with Strategic Reserve; Yet Chances Remain Slim
Popcat – POPCAT
One of the top performers in the memecoin category for many weeks now on and off has been POPCAT. Looking at a rising channel that it’s forming on a daily time frame, there are some potential scenarios I am watching below.
Bullish Scenario
Reclaiming this channel would be a good sign from the bulls in my eyes, and provide the foundation technically speaking to then aim for the middle and top of this channel.
Bearish Scenario
Failure to find interest at resistance here could result in pricing coming down lower.
Brett – BRETT
A memecoin on the Base network, BRETT, is a very nice chart in my eyes. Doing some Fibonacci analysis we can create the following plan.
Bullish Scenario
Getting above the 0.618 ratio, or $0.14478, would show me that bulls are in control. I would then look to target each level higher.
Bearish Scenario
Any failure to find support here from the bulls, could result in a move back lower.
My Take
As the broader market waits on the sidelines while Bitcoin continues to dominate, many altcoins are understandably underperforming. This scenario may offer a valuable lesson for future investment strategies, given that Bitcoin often captures the spotlight when it reaches new highs, as it did earlier this year. However, what comes next could finally propel altcoins into an impressive period of growth as they play catch-up.
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