Bitcoin price has gained 2.5% in the past 24-hours, moving it to $27,896, helping the cryptocurrency market post a 2% gain in the same time period.
BTC is now up 4% in a week, but down 5% over the last 30 days, although its gains today mean it has risen above its 21 weekly EMA (exponential moving average), indicating more upside. is in store.
Its rise also signals potential rallies for lower-cap altcoins and meme tokens, given that such cryptocurrencies follow bitcoin’s lead.
with and Republican lawmakers agree to deal with White House on US debt ceiling Over the weekend, it is entirely possible that there will be more gains in the coming days, especially if the US Congress ratifies the deal.
Bitcoin Price Bounces Off 21 Weekly EMA – A Risk To Low Market Cap Tokens And Meme Coins?
Bitcoin’s chart is encouraging, in that it indicates a breakout that could continue in the near future.
The cryptocurrency’s Relative Strength Index (purple) hit 80 over the weekend, and has eased slightly over the past 24 hours, remaining near 70, raising the prospect of more bullishness to come.
Similarly, BTC’s 30-day moving average (yellow) has risen well above its longer-term 200-day average (blue), as has its true price.
This also shows that the momentum of bitcoin is still on the rise, with the coin price likely to rise to $28,000 in the next few days.
As mentioned above, it will certainly rally again after the US Congress approves a deal on the federal government’s debt ceiling, which will be discussed on Sunday between President Joe Biden and Republican House Speaker Kevin McCarthy. It was agreed.
The ominous prospect of a damaging loan default weighing on the cryptocurrency market (and financial markets in general) was helping to keep prices down for a couple of weeks.
However, with this risk now virtually neutralized, the market will be free to continue the recovery that began slowly at the start of the year, with BTC gaining 68% since January 1st alone.
In fact, other recent signs suggest that the global economy continues to recover steadily (if unexpectedly). Eurozone to avoid recession in Q1 2023,
On top of this, the IMF has refuted earlier, gloomy forecasts and predicted the UK would avoid recession this yearWhereas US economy is adding jobs And beating earnings predictions,
it is also worth mentioning Hong Kong is about to introduce new rules June 1st which will allow retail investment in cryptocurrencies will mark a change in Chinese policy towards crypto.
loaded dice?
Taken together, these pieces of news paint a positive picture, in which growing confidence in the global economy will quickly translate into a growing appetite for risk-on assets such as cryptocurrencies.
Even now, the best performing coins in the market today are not the large established cryptocurrencies, but a variety of new altcoins.
This includes injection (INJ), lido (LDO), quant (QNT) and needle (SUI), which are up 14%, 6.1%, 6% and 5% (respectively) in the last 24 hours.
What’s happened here is that bitcoin’s gains today have helped drive more appetite for riskier altcoins, which may fall more heavily during selloffs but rise more strongly during rebounds and rallies.
And assuming that Congress does benefit from BTC approving the above deal, it is highly likely that altcoins will also rally, doing so perhaps more strongly than the parent cryptocurrency.
This is likely to include Meme Token, which has been among the strongest performers over the past month.
For example, Pepe (PEPE) is up nearly 350% over the past 30 days, while Wojak (WOJAK) is up 9% today and 100% over the past month.
Of course, meme tokens can easily fall in and out of fashion, meaning that the likes of PEPE, WOJAK and others are easily surpassed by new meme coins, such as SPONGE and Wall Street Memes (WSM). May go.