Bitcoin (BTC) and Ethereum (ETH) have managed to maintain their support levels, although altcoins are emerging as the stars of the show. Notable performers this week include Flare (FLR), Ronin (RON), and Chainlink (LINK), with impressive gains that have caught the attention of investors and analysts alike.
According to data from Samtiment, the overall cryptocurrency market cap has experienced a modest uptick of +0.5% over the past week, despite a notable -20.3% drop in trading volumes compared to the previous week. This trend signals a shifting focus from Bitcoin to altcoins, as evidenced by the standout performances of several assets.
Flare (FLR) stole the spotlight with an outstanding 45% surge over the past week, reaching a peak of $0.3389. Currently trading at $0.03137, FLR demonstrates robust performance, boasting an 11.80% price increase and an impressive 160% surge in trading volume within the last 24 hours.
Ronin (RON) also made waves, securing the second position with a 35% gain over the past week. As of the latest data, RON is trading at $3.47, experiencing a 15.02% increase in price and a remarkable 140% surge in trading volume in the last 24 hours.
Chainlink (LINK) closely followed, claiming the third spot with a weekly increase of over 27%. LINK is currently trading at $18.58, LINK shows a 4.81% price increase and a 48.56% rise in trading volume within the last 24 hours.
In addition to these top performers, altcoins such as Immutable (IMX), Render (RNDR), and Sui (SUI) also reported gains in their weekly charts. IMX saw a 10% increase, RNDR gained 8%, and SUI showed a 7% uptick, according to data from CoinMarketCap.
Bitcoin (BTC) & Ethereum (ETH) Weekly Review
Bitcoin’s recent price movements have encountered a persistent hurdle as it struggled to surpass the formidable $43,800 resistance level. Currently, the digital currency is at a critical juncture, facing the possibility of a substantial decline should it breach the $41,800 support level.
Despite making several attempts to gain momentum above the $43,000 and $43,200 resistance thresholds, Bitcoin has encountered resistance, indicating a challenging path for further upward movement.
A noteworthy insight from Santiment unveils a shift in sentiment dynamics within the crypto community. Traditionally, a surge in discussions about Bitcoin was viewed as a sign of fear. However, an interesting transformation has occurred since mid-2023, where the prevailing euphoria and optimism surrounding ETFs have turned high Bitcoin discussions into a greed indicator.
This shift in sentiment is attributed to arguably unrealistic expectations for the cryptocurrency markets. Three weeks after the Securities and Exchange Commission (SEC) approved Bitcoin ETFs, there are indications that this sentiment indicator is gradually normalizing.
However, there is a cautionary note – an overemphasis on discussions about alternative cryptocurrencies (altcoins) could turn the sentiment towards Bitcoin bearish, particularly if altcoins outperform the leading cryptocurrency in the initial week of February.
In contrast to previous instances where spikes in Bitcoin’s social dominance signaled predictable market tops, a negative spike now suggests that the digital asset is being overlooked once again. Investors seem to be eagerly diverting their attention and over-leveraging portfolios towards altcoins, a phenomenon that might signify a shift in market dynamics.
According to the analysis provided by renowned crypto analyst Michaël van de Poppe, Bitcoin finds itself in a range-bound scenario, with markets currently in a state of equilibrium.
Looking ahead, Van de Poppe anticipates a final push towards $48,000 before the impending halving, followed by a consolidation phase. The breakout towards an all-time high is projected to occur in the third or fourth quarter of 2024.
As of the latest update, the current Bitcoin price is $43,041, reflecting a 0.57% increase in the last 24 hours and a 3% rise in the past week. The market cap stands at an impressive $844.41 billion, accompanied by a 24-hour trading volume of $28.80 billion.
Shifting focus to Ethereum, the second-largest cryptocurrency by market capitalization, it has demonstrated stability by holding above the $2,300 mark. Analysts are drawing attention to Ethereum’s potential for a significant price surge.
Analyst Ali Martinez points out a substantial outflow of nearly 510,000 ETH, equivalent to approximately $1.22 billion, from known exchange wallets over the past three weeks. This massive outflow is interpreted as a positive signal, indicating strong holder sentiment and potentially reducing selling pressure in the market.
Presently, Ethereum is valued at $2,327.69, reflecting a 1.03% increase in the last 24 hours. The market cap stands at $279.75 billion, with a 24-hour trading volume of $10.43 billion.
Michaël van de Poppe, in an additional perspective shared via a X post, underscores Ethereum’s resilience at the crucial support level of $2,150. As long as this support holds and the incremental upward momentum persists, he maintains an optimistic outlook, suggesting a potential surge to $3,000 or more in the second quarter of the year.
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