Bitcoin price has suddenly crossed $35,400 while the expected volatility may be starting. Continuous rise or fall in cryptocurrencies is not unusual. Moreover, these rapid increases in BTC price while it tends to exit the downward trend are even more exciting. So, what’s next?
Why is Bitcoin Rising?
We had mentioned that on-chain data indicated accumulation despite the price increase. After testing the $36,000 level, the king cryptocurrency unit fell back to the $34,500 support. However, at the time of writing, it is trying to regain $35,500 to target $36,000 again. This rapid rise occurred while short-term investors started profit-taking. Moreover, $15 million worth of positions were liquidated in the last hour alone.
The ratio of liquidated short positions is around 92%. The price outlook in the last hour was signaling a higher risk of decline for those who engaged in short selling.
If the BTC price can surpass $36,000, it may not encounter strong resistance until $40,000. This would indicate a reversal of the downturn in May 2022. So, what is the next target? The ultimate target of the rally seems to be a minimum of $48,000. Increasing institutional demand and growing optimism about the Fed’s policy suggest that this is not impossible.
Current Status of Altcoins
Even though the Bitcoin price is consolidating around $35,000, we may witness new highs for altcoins that have recently turned around from resistance levels. In the optimistic scenario we shared in the last few days, gains exceeding 30% were mentioned. The cumulative value is in the $1.33 trillion range, and it is likely that we will see new highs between $1.4 and $1.45 trillion.
The cumulative volume has also increased by 10% compared to yesterday, reaching $44 trillion. The winner of the day was CRO, SOL, and TON Coin. All three achieved gains of around 10% in the last 24 hours. Especially, if SOL Coin can surpass $48, it has the potential to see new highs above $60.
However, the recent BTC recovery may hinder the further decline of weak altcoins. Nevertheless, investors should be aware that volatility can increase in the opposite direction until the daily closing.
