Opinions among analysts vary regarding the current state of the market, with some suggesting that a 20% decline is typically necessary for a market reversal, while others believe that the top cryptocurrencies have reached a local bottom.
Bitcoin has been experiencing a consolidation phase for more than two months now, but despite its surge from $57,000, one analyst claims that it is still in a “prime buy zone.”
Heading into the weekend, major cryptocurrencies are trading slightly higher, with meme coins leading the gains as Bitcoin struggles to surpass the $63,000 mark.
Over the past day, the overall market cap has increased by 3.36% to reach $2.33 trillion, reflecting the market’s sideways trading. Most cryptocurrencies have gained between 2% and 4%, with only TRON and LEO among the top 100 cryptos experiencing losses.
Meme coins, on the other hand, have seen higher overall gains. Book of Meme’s BOME has been the biggest climber in this category, recording a 12.7% increase to trade at $0.01157 and secure a spot in the top 100. Dogwifhat gained 11.5%, while Floki and Bonk each saw a 6% increase. Shiba Inu and Dogecoin, the two largest meme coins in the industry, gained just under 4%.
In particular, Dogwifhat has experienced a revival, reaching $3 for the first time since its collapse from $3.6 earlier in the week. This Solana-based meme coin has caught the attention of whales, with Lookonchain revealing that one address spent $4.2 million in USDC to purchase 1.4 million WIF at just below $3. This address was one of the early WIF traders, making $8 million from some early trades.
The recent resurgence in the crypto market coincides with an endorsement from former President Donald Trump, the Republican candidate. Trump held an event where he assured the industry that he would champion its interests if he defeats Joe Biden in the upcoming election.
Analysts at Standard Chartered believe that the Trump administration, along with ongoing fiscal challenges, could propel Bitcoin to surpass $150,000.
However, at present, Bitcoin is struggling to reclaim the $65,000 level, which it has only reached once this month. Currently, BTC is trading at around $63,000.
According to one analyst, Bitcoin has been consolidating for more than two months now. In previous instances, Bitcoin consolidated for 64 days earlier this year before breaking out in February and setting a new all-time high. Last year, it consolidated for 220 days before the breakout, as shown in the chart below.
Another analyst believes that the key to Bitcoin’s rebound lies in its daily relative strength index (RSI).
Data from IntoTheBlock indicates that exchange netflows for Bitcoin have been negative over the past 30 days, suggesting low selling pressure. Among the major currencies, only MATIC and DOGE stand out with high exchange inflows.