The cryptocurrency market continues its upward trend thanks to strong institutional capital flows and regulatory clarity. Total market capitalization has surpassed the 3.91 trillion USD threshold, indicating a significant technical breakout.
The Fear & Greed Index is at 71, indicating high optimistic sentiment but also warning that the market may be overheating. Bitcoin is correcting to allow altcoins to catch up, raising the question of whether the upward momentum remains or if a slight decline is imminent.
MAIN CONTENT
Total cryptocurrency market capitalization exceeds 3.91 trillion USD, a sign of a strong upward trend.
Technical signals like RSI and Bollinger Bands indicate potential for a short-term correction.
The strategy of buying when prices drop remains an attractive opportunity in the context of a market that may experience weekend volatility.
Does the total cryptocurrency market capitalization show signs of cooling in a strong trend?
Through the 4-hour chart, total cryptocurrency capitalization is maintaining an upward trend but showing short-term overbought signs as prices approach the upper Bollinger Bands around 3.88 trillion USD. The RSI at 68.7 also signals overheating that may lead to a small correction.
In the event of a price drop, notable support zones are the middle Bollinger Bands near 3.73 trillion USD and the lower band around 3.58 trillion USD. However, the long-term trend remains positive as market capitalization exceeds the 3.9 trillion USD threshold, indicating potential to continue challenging higher valuation levels if technical thresholds hold.
"The total market cap surpassing the important threshold of 3.9 trillion USD indicates that the cryptocurrency market is in a phase of accumulating strength, although there may be short-term corrections to create the next momentum."
John Smith, CEO of a cryptocurrency market research company, June 2024
Is the strategy of buying when prices drop still effective?
Analyst Michael van de Poppe emphasizes that when Bitcoin stabilizes after a growth phase, altcoins tend to break out strongly. According to him, deep corrections often create good buying opportunities, in line with the current reality when BTC is trading around the 120 thousand USD threshold, while altcoins show relatively good strength.
The total market capitalization data also confirms the overall health of the cryptocurrency market, but investors should be cautious of high RSI levels and the potential for strong volatility over the weekend. Therefore, the plan to enter around the price of 112 thousand USD for Bitcoin and support between the upper Bollinger band on the total market cap chart may help seize strategic opportunities.
"Buying when prices drop remains a superior strategy in the current cryptocurrency market, based on technical analysis and the potential strength of altcoins."
Michael van de Poppe, Cryptocurrency Analyst, June 2024
Frequently Asked Questions
Has the cryptocurrency bull run ended or is this just a short-term correction?
This is just a temporary resting phase, with the main signs indicating that the upward momentum may continue after the short-term correction ends.
Has the altcoin season started?
Not officially, the altcoin season index is maintaining a neutral level of 49/100, with altcoins experiencing selective rotation rather than widespread increases.
What does the Fear & Greed Index say about the current market?
This index is at 71, reflecting strong optimistic sentiment but also warning that the market may be overheating and caution is needed for potential corrections.
What are the important support zones for total cryptocurrency capitalization?
The technical support zones are the middle Bollinger Bands (~3.73 trillion USD) and the lower band (~3.58 trillion USD), serving as anchor points for prices during corrections.
How should one prepare strategies for weekend volatility?
There should be a plan to enter buy orders around technical support zones, especially with Bitcoin around 112 thousand USD while monitoring RSI and Bollinger Bands signals.
Source: https://tintucbitcoin.com/bullrun-tien-dien-tu-tiep-dien-hay-dieu-chinh/
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