As an experienced analyst, I’ve seen my fair share of market volatility in the cryptocurrency space. Monday’s green sea was a welcome sight for investors after a week of bearish sentiment. However, it’s important to approach this recovery with caution.
On Monday, Bitcoin regained its dominance over the $63,000 mark, causing a vast expanse of green in the market as investors adopted a more optimistic approach.
On Monday, Ethereum Name Service (ENS) stood out among altcoins with impressive gains as attention turned towards the forthcoming ENSv2 upgrade. Meanwhile, LayerZero experienced a significant surge, reaching a price of $3.6 – a 40% increase from its lowest point in the previous week.
Mog Coin, a standout meme coin in 2021, reached an unprecedented peak of $0.0000021, marking a significant increase of over 200% from its previous low in June. Bonk also displayed impressive growth, surging by more than 32% since its lowest point last month. Among the altcoins making waves on our chart this week were Dogwifhat (WIF), Immutable X (IMX), Fantom (FTM), and Bittensor (TAO).
MOG vs ZRO vs Bonk prices chart
As an analyst, I’ve observed that both Bitcoin and altcoins experienced a significant recovery in a high-volume market. According to CoinMarketCap, the daily trading volume surged by more than 45% to reach $53 billion – a figure not seen since June 28th.
The French election on Sunday didn’t provide any significant trigger for the recent surge in these coins’ values. Instead, it seems that investors have adopted a more optimistic outlook and taken on increased risk due to the unexpectedly less-than-predicted victory of Marine Le Pen’s party in the election.
Following the event, the US dollar index (DXY) decreased by 15 basis points, while global stocks surged ahead. The French CAC 40 index experienced a rise of over 2%, and the German DAX index went up by 0.70%. In the United States, Dow Jones and Nasdaq 100 futures also saw gains.
Dead cat bounce?
Bitcoin price chart
As a cautious crypto investor, I cannot ignore the possibility that the recent price rallies of LayerZero, Mog Coin, and Bonk could be deceiving us with a dead cat bounce. This ominous market phenomenon describes an asset’s sudden recovery after a steep decline, only to resume its downtrend soon after. While it’s tempting to celebrate these brief price increases, I remain vigilant and keep my eyes on the long-term trend for these particular assets.
The danger associated with Bitcoin becomes more pronounced given its volatile behavior over the past few months. For instance, it displayed a doubly peak formation at the price mark of $72,000 last month. Since then, it has repeatedly failed to surpass this level, last achieving that on March 27th.
As a crypto investor, I’ve noticed that Bitcoin hasn’t been able to surpass the 50-day and 100-day Exponential Moving Averages (EMAs) lately. This indicates that bears are still dominating the market. More intriguing is the recent formation of a bearish pennant chart pattern by Bitcoin, which could signal further price declines in the near term.
As an analyst, I’ve identified a potential risk that Bitcoin may dip below the $60,000 mark this week. If this occurs, it’s likely that alternative coins such as MOG, BONK, and ZRO will resume their downtrend. These tokens tend to mirror Bitcoin’s price movements.
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2024-07-01 16:58