The cryptocurrency industry concluded 2023 on a positive note as the market recorded a massive uptrend in its valuation. Furthermore, the price of Bitcoin added over 108% to its portfolio during this time, highlighting its increasing adoption in the market.
On the other hand, many altcoins have made their investors rich multiple times through their investments, indicating high investor interest in them. Moreover, the market is eagerly awaiting the upcoming alternative season, which is expected to play a major role in the cryptocurrency industry this year.
Overall, Bitcoin dominance has seen a significant rise over the past year and stands at 51.9% at the time of writing. With a series of events scheduled for this financial year, the cryptocurrency industry is on the path to achieving a new milestone by entering a new phase.
Bitcoin analysis:
After registering a notable rise over the past year, the price of Bitcoin, the market leader, started the year in a neutral trend by trading sideways for a brief period. The stellar cryptocurrency recorded significant volatility after Spot ETF approval, but the rally was short-lived as the market showed a bearish impact.
BTC price concluded the month with a +0.73% return, which indicates weak price action and makes it a neutral month for Bitcoin price. Positively, the next Bitcoin halving is scheduled to take place this year and is expected to play a vital role in the industry, considering the current market sentiment.
With the upcoming halving, Bitcoin price is expected to achieve a new all-time high (ATH) by surpassing its previous price of $69,186.30, which was recorded in November 2021.
Currently, Bitcoin price has formed a round bottom pattern and is trading since it reached its highest level. If the industry continues to follow the trend with sentiment in favor of the market, the price of BTC will see a sudden spike during the third quarter, with the price ranging around $58,000.
The MACD technical indicator is showing a rise in the green chart, indicating increased buying and selling pressure in the market. Moreover, the average shows an upward curve, which indicates that the price will continue to gain value next time.
Positively, the 50/200-day EMA has served as support for Bitcoin price for more than six months, indicating a strong bullish impact of the coin on the market. If the market continues to gain momentum and the upcoming events favor the cryptocurrency industry, the price of Bitcoin is expected to reach the $100,000 level by the end of the year.
Ethereum Analysis:
Altcoins struggled to gain traction during the first month of the year, indicating weak investor interest in them. Furthermore, altcoin leader, Ethereum Price, struggled to keep its price above the support level, adding less than $65 (+5%) to its portfolio.
Ethereum, on the other hand, has successfully formed a symmetrical triangle pattern and has been trading for a while. Moreover, ETH price is hovering near its resistance and is about to test it, the outcome of which is unpredictable.
The Moving Average Convergence Divergence (MACD) is showing a decline in the green chart, indicating an increase in selling pressure within the market. Moreover, the average shows a high probability of a bearish convergence as both the lines and the trade are very close to each other.
Ethereum price has set a primary target to regain the $3,500 mark within this year. With increasing market volatility and the possibility of altcoin season coming soon, the Ethereum price is expected to witness massive price movement in the future.
Bullrun 2024 Predictions:
Multiple factors play a vital role in token price momentum in the industry. Some factors affect the price movement industry wide, while some are limited to a specific category or token of cryptocurrencies.
Some of the key factors that are expected to play a vital role in shaping the future of the industry are the US Presidential elections and the long-term role of Spot Bitcoin ETF trading in the market.
This year's US presidential election is considered one of the most important events of the year as it is expected to play a major role in shaping the future of this financial system, thus impacting the industry on a large scale.
Following the SEC's approval of the Bitcoin Spot ETF, the cryptocurrency industry saw a significant jump in value, with Ethereum Classic recording the highest gains. From a long-term perspective, the ETF is said to influence Bitcoin's price movement as the market rapidly adopts this new technology.
Conclusion:
The cryptocurrency industry witnessed massive price movement during the previous bull run, and the same is expected from the market this time. Although internal and external factors play an important role in price movement, the market has registered a rise in adoption with massive influx of both users and liquidity in the market.
The Bitcoin price target is $100,000 which gives us a return of 112% considering the current Bitcoin price ($47,130). On the other hand, Ethereum price has a base target of $3,500, giving us a 101% return by the end of the year if sentiment is in favor of the industry.
NB:
This article is published for information and educational purposes only. The article is not affiliated with any trading or investment advice and does not promote any type of news. Make sure to do your research before investing, as this industry is highly volatile.
