What is happening now in the crypto market isn't small. The market is experiencing significant rises, and everyone is excited, which is very natural in bullish waves. But we must be aware and understand the game well. Optimism is good, but excessive optimism could be a trap.
What has caused the market to heat up like this?
Institutional flows and large liquidity.
The money that came in yesterday from heavyweight institutions like BlackRock and Fidelity through Bitcoin-linked ETFs. When massive entities consider Bitcoin a safe product, that's enough to lift the market. We're also seeing banks and financial companies opening their doors to crypto, which is injecting liquidity in an incredible way and rapidly raising prices. Additionally, the Fed sent signals that it doesn't intend to tighten the market, which acted as oxygen for those who were scared. High-risk assets like crypto are becoming attractive again, and thus money is flowing back towards them with a relative calm in US-China relations, allowing the market to take a breath and reduce global fear, which helped inject additional liquidity into the field.
So... is the market continuing?
The short answer? Yes... but with caution.
Bitcoin is up, but what’s really happening are Ethereum and Solana, which means the market isn't moving solely on Bitcoin and has begun a liquidity shift towards Altcoins.
Signs of overbought conditions.
The Relative Strength Index (RSI) for several currencies has reached levels above 70, which simply tells us that the market may drop and make a correction soon.
A quick analysis of the major currencies.
Bitcoin BTC
The current price: $93,618. The market is optimistic, but with rapid fluctuations, we might see jumps but also experience violent corrections.
The next resistance level is around $95,000.
Strong support around $88,000. If it breaks this level, it could drop.
Ethereum ETH
The current price is $1,810. Ethereum is leading the current wave in the Altcoins, and it could easily break the $1,900 barrier if the market stays positive. However, with the RSI nearing 70, be cautious of market saturation.
Solana SOL
The current price is $151.63, clearly outperforming everything. If it stays above $160, it could return to its old levels around $190-200, but this won't happen unless liquidity continues to flow. The important support now is $138-$140.
Ripple (XRP)
The current price is $2.27.
The trend is very promising, with expectations to reach $2.50 - $3.00 soon. If it breaks this resistance, it could reach new numbers (some optimistic analyses suggest an increase to $11 in the medium term), but if liquidity is withdrawn or any negative news about legal issues arises, this momentum could break quickly.
More institutional flow.
Positive news from major companies could see Bitcoin above $100,000 and Altcoins might continue their crazy race.
A sharp correction is possible due to overbought conditions, negative economic news, sudden monetary tightening, or political or legal escalation that could create a sudden drop.
In summary,
The market is rising but with momentum, and it could collapse if there is any slight change in the scene.
Balance is necessary; don't enter under the influence of fear of missing out (FOMO) or be overly negative. Follow technical indicators and monitor market news continuously.
If you're still on the sidelines, wait for correction moments... opportunities always come back, but if your money is lost, it won't come back easily.
Watch the news, track liquidity movements.
Prepare your strategy... because surprises are always around the corner. And this is just an analysis and opinion, not financial advice 😊👻
