Bitcoin and Ethereum have recently seen significant price drops, causing concern among investors. Bitcoin fell below $55K, triggering major trading signals and breaking the short-term uptrend since last August. Similar corrections in the past have lasted over two months before a bull run resumes.
VirtualBacon, a Crypto analyst, notes that the recent market dip is not just due to German selling of 27,000 Bitcoins but also tied to wider issues such as rate hikes, presidential election results, SEC decisions, and ETF inflows. External factors like Mt. Gox potentially selling 142,000 Bitcoins are adding to market pressures. Despite the drop, knee-jerk reactions are advised against.
Institutions like BlackRock and Fidelity are buying the dip, showing strong institutional confidence. The correction that started on July 4th may continue until September, aligning with historical mid-cycle corrections lasting 60-70 days. Bitcoin’s price often correlates with the NASDAQ and S&P 500, indicating that as long as these indices rise, Bitcoin is likely to follow suit.
Looking beyond Bitcoin, VirtualBacon is exploring altcoins for hidden gems amidst the chaos. Despite some altcoins expecting a drawdown, assets like Ethereum and Solana are worth accumulating. Ethereum is poised to benefit from upcoming ETF launches, while Solana has shown resilience in recent market turbulence.
Investors are advised to focus on proven performers and consider sectors like AI, gaming, and meme coins for potential outperformance. Portfolio adjustments should be gradual over 2-3 months, especially when considering meme coins or other altcoins.
The bull run is expected to continue once Bitcoin breaks above the 21-weekly EMA and establishes a higher low. Patience and strategic accumulation of strong assets are recommended during this period. Key price targets include Bitcoin at $50K, Ethereum between $2,200-$2,600, and Solana at $100-$110.
While the transfer of funds to exchanges may suggest Germany’s intention to liquidate, it does not confirm that the assets have been sold. FTX’s bankruptcy estate is set to distribute around $16 billion in cash to crypto investors in September or October, acting as a positive catalyst for the market.
By advocating for strategic moves, identifying key levels, and exploring opportunities in different sectors, VirtualBacon empowers investors to navigate the market turbulence confidently and seize emerging trends.