Bitcoin price made a surprise move this week as it rose to $64,000 from an important support area of over $50,000 on Monday. This massive rally has changed the short- and long-term landscape for not only Bitcoin but also other cryptocurrencies to HODL, including Shiba Inu (SHIB), Dogecoin (DOGE), and XRP.
The ETF has been the biggest market mover since its approval in January. With over $7.49 billion in cumulative net inflow, demand for Bitcoin is increasing and driving Bitcoin prices higher.
Although the rally was seen across the market, some altcoins like SHIB emerged as the biggest gainers, rising more than 50% in a week.
Investors will carefully gauge Bitcoin's behavior in the next few days to confirm the validity of an uptrend to $70,000 or a correction to gather liquidity for another major breakout.
1. Bitcoin (BTC)
The Bitcoin supply and demand landscape continues to change, driven by increased ETF inflows. Moreover, investors prefer to hold Bitcoin in anticipation of a bigger breakout after the halving in February.
Bitcoin halving, which cuts miners' rewards by half every four years. The last half occurred in 2020, and the next one is scheduled for 2024 around April.
In addition to giving Bitcoin halving status, the halving significantly reduces the amount of new coins joining the ecosystem. Remember, miner rewards will drop to 3.125 BTC from the current 6.25 BTC.
It is this gradual decrease in supply coupled with demand increasing or remaining the same that causes the price of Bitcoin to rise parabolically. The ETF is also expected to have a major impact on Bitcoin as demand rises.
The area at $63,000 represents a sell wall that must be weakened to allow gains above $64,000 (red line on the chart). A break above this will spark more FOMO as market participants target a sweep to the all-time high followed by a rally above $70,000.
2. Shiba Inu (SHIB)
Like many cryptocurrencies on the market, Shiba Inu Coin faced heightened uncertainty in January, leading to a correction below the $0.00001 level. The meme coin flooded into liquidity at $0.0000082 – the lowest point of 2024 followed by a steady consolidation above $0.000009 before a massive breakout this week to $0.00001467.
A slight decline in the Moving Average Convergence and Convergence (MACD) threatens to slow the uptrend. By encouraging traders to close their positions.
However, this situation may not hold or persist as the RSI is neutral and moving upward, indicating that liquidity is increasing for another step higher. Several four-hour closes below the yellow support line could send BTC lower to retest the $60,000 level before resuming the uptrend supported by more buying pressure.
3. Ripple
While the majority of major coins rose alongside Bitcoin, the XRP price showed waning upward momentum this week. From the recent swing low of $0.534, the coin's price has jumped 11% to currently trading at $0.59.
The sixth largest cryptocurrency XRP has seen a slow but steady recovery since last month under the influence of an upward trend line. Dynamic support lifted the asset through minor declines while keeping the recovery intact to reach $0.59 at press time.
If buyers fail to hold the broken trendline, XRP price may retreat to the lower trendline to regain strength. Until upward support becomes intact, traders can prolong the ongoing recovery trend.
4. Dogecoin (DOGE)
The cryptocurrency market saw a strong uptrend in late February, as massive inflows from spot ETFs lifted the underlying asset BTC. Concurrent with the rise in Bitcoin prices, altcoins extended the recovery trend, including Dogecoin which rose from $0.082 to $0.1, recording 48.5% growth. This swing provides a massive breakout of the long-term triangle pattern indicating a major shift in market dynamics.
Analysis of the daily time frame chart shows that Dogecoin price has been moving in a sideways trend for the past 22 months. This sideways movement confined within two converging trend lines indicates the formation of a symmetrical triangle pattern.
Theoretically, this chart pattern was developed to indicate the observed period of consolidation whose outcome determined the dominant force in the market. Amid the recent rally in the cryptocurrency market, DOGE price has given a decisive breakout of the upper bound signal, as buyers are regaining control of this asset.
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