Market picture
The cryptocurrency market is down 0.6% over the past 24 hours, falling to $1.15 trillion, as we see reduced volatility and attempts to "buy the bottom".
Bitcoin is testing and attempting to hold above its 50-day moving average on Monday and Tuesday. As it does so, we, for now, see some reduced volatility and attempts to form a local bottom. It could be an attempt to return to buying after a corrective pullback or a consolidation before a new downward impulse.
Regarding technical analysis, bitcoin's correction will only become a new downtrend when the price consolidates below $26.5K, 61.8% of the upside momentum from the March lows and the bottom of last month's consolidation.
According to CoinShares, investments in crypto funds fell by $30 million last week after four weeks of gains. Bitcoin investments decreased by $53 million, while Ethereum rose by $17 million.
News background
Significant inflows into Ethereum assets indicate growing investor confidence following the successful implementation of the Shapella update.
Crypto winter is over, says Standard Chartered. Bitcoin will benefit from the turmoil in the banking sector and several other factors. By the end of 2024, the price of the first cryptocurrency could reach $100K.
Twitter analyst PlanB, the creator of the Stock-to-Flow model, expects Bitcoin to grow significantly in 2024 after halving. He calculates that BTC will break through $100,000 and could eventually reach $542,000.
In the medium term, BTC could become the world's reserve currency, according to BitMEX co-founder Arthur Hayes. More and more investors are looking to Bitcoin to preserve capital.
The World Economic Forum (WEF) said Bitcoin mining could significantly reduce greenhouse gas emissions. But only if miners switch to renewable energy sources.
Billy Marcus, the creator of the meme cryptocurrency Dogecoin, called crypto investors "mentally disturbed" and NFT buyers "even more unhealthy". He said he stopped investing in cryptocurrencies nine years ago, shortly after Dogecoin was launched.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.
