By
Bhushan Akolkar
May 10th, 2024
Analysts hold a strong belief that the current market surge would be short-lived.
Bitcoin since falling from its all-time high of nearly $69,000 has struggled to bounce back. Bitcoin has on some occasions attempted to break into $24,000 but gets overpowered by the dominance of sellers on the market. The past 24 hours have been very interesting as some of the leading digital assets have staged a mini rally. Bitcoin and Ethereum were both 5% up until they marginally dropped a portion of their gained value to stay 4% up.
Bitcoin is currently trading at $20,131 while Ethereum is valued at $1,377. Other altcoins like Solana are also 4% up, BNB is 3% up, and Uniswap is 14% up. In addition to Terra Classic which is 43% up, assets including Filecoin, Internet Computer, Chainlink, and Polkadot are all enjoying the mini rally.
According to Edul Patel, CEO and co-founder of Mudrex, the current surge of the crypto market is in Tandem with the equity market.
“Bitcoin buyers could seize the initiative above the $19,500 level by entering the market after digesting macroeconomic factors. The second largest cryptocurrency, Ethereum, regained its psychological support at $1,300,” he said.
At this point, analysts hold a strong belief that the current market surge would be short-lived. This is due to the rising inflations, interest rate hikes, and tax cuts amid recession fears and macroeconomic problems.
“Most cryptocurrencies rose on Monday in counter to the equity markets. After dipping in the past week, Bitcoin and Ethereum rose by nearly 5% each. The supply of the token has increased by 8,400 ETH as it transitioned from PoW to PoS. We might likely see a mid-term growth if the price of Ethereum returns to the $1,380-$1,400 level,” said Patel.
He further added that the next resistance level would be at $20,600.
Regardless of the current market status, some analysts have predicted that Bitcoin could fall as low as $12k. A pseudonymous crypto expert, Doctor Profit, earlier predicted that the Federal Reserve’s monetary decisions could cause a bloodbath in the market. Crypto analyst Justin Bennett also predicted that a bearish trend has been forming in Bitcoin since May. According to him, the asset faces a sharp decline that could make it trade at $12k. This could possibly drag the rest of the cryptos along.