Even though this weekend is calm, a rise in volatility is anticipated later. As we move towards Monday, fluctuations generally increase, likely driven by the Friday CME closure shaping the graphics. Can altcoins climb further in the market? What awaits investors during this time?
Will Altcoins Surge?
The price of ETH is once again near the $3,800 mark, and a sustained consolidation at this level could initiate a move past $4,000. Last week, an influx of 80,000 BTC being sold prompted profit-taking among investors. Many altcoins dipped from peaks, yet their potential for a rebound is growing as they form higher lows.
Kyle’s current analysis directs altcoin investors to focus on the cost of futures trading. The demand in futures markets impacts spot prices significantly. Monitoring position costs can be crucial to determine if the demand has peaked and to assess the sustainability of the altcoin rise. Kyle is taking this exact approach.
“Speculations have reignited. Altcoin investors are spending $32.9 million monthly to maintain positions.
This figure approaches the $42 million seen during BTC’s ATH in March 2024, not far from the $70 million reached during the $100,000 breakout.
Leverage is growing. The bulls are stirring.”
Kyle suggests that the market has not yet reached its full potential if we’re discussing a peak in investor sentiment. Moreover, the potential for a better phase than last November’s peak exists. Future data releases and announcements will decide whether they play in favor of cryptocurrencies. If supportive, altcoins could indeed reach new highs, showing strong potential for further rises.
Bitcoin (BTC) and Solana (SOL)
Mentioned earlier, the CME gap refers to the price difference from Friday’s CME close to Monday’s early opening. If there’s a significant gap, the BTC price often moves towards the Friday close on Sunday. Recent favorable CME GAP is now in reverse, and BTC might head towards the $117,000 base tonight as DaanCrypto notes:
“If we begin the week with a gap, it often closes swiftly, as it has in the past two months.
Finally, if BTC’s momentum rises and price discovery resumes, we might see another large gap forming. Most weekend movements tend to take place during this period.”
SOL Coin’s price exceeded the $210 range but failed to maintain it. The positive aspect is its hold on $179 as support, and if bulls remain strong, surpassing the $188 hurdle could lead to a renewed move towards $203. Friday showed a weak SOL ETF entry at $1.4 million, though since launch, SSK ETF has surpassed $120 million in total inflows.
