There is a divide among analysts regarding the current state of the market. Some believe that a 20% decline is necessary for the market to reverse its momentum, while others see a local bottom for the top cryptocurrencies.
Bitcoin has spent over two months in a consolidation phase. Despite its surge from $57,000, one analyst believes that it is still in a “prime buy zone.”
As we approach the weekend, major cryptocurrencies are trading slightly higher. Meme coins are experiencing slight gains, while Bitcoin is struggling to break past $63,000.
The overall market cap has increased by 3.36% to reach $2.33 trillion in the past day, indicating sideways trading in the market. Most cryptocurrencies have gained between 2% and 4%, with only TRON and LEO in the top 100 cryptocurrencies experiencing losses.
Meme coins have seen overall higher gains. The biggest climber in this category is Book of Meme’s BOME, which has increased by 12.7% to trade at $0.01157 and enter the top 100. Dogwifhat has gained 11.5%, while Floki and Bonk have each gained 6%. Shiba Inu and Dogecoin, the two largest meme coins in the industry, have gained just under 4%.
Dogwifhat, in particular, has experienced a revival, reaching $3 for the first time since its collapse from $3.6 earlier this week. This Solana-based meme coin has caught the attention of whales, with one address spending $4.2 million in USDC to purchase 1.4 million WIF at just below $3. This address was one of the early WIF traders and made $8 million from some early trades.
The recent resurgence in the crypto market coincides with an endorsement from former president Donald Trump. During an event, Trump assured the industry that he would champion its interests if he wins the election. This endorsement, along with ongoing fiscal challenges, has led analysts at Standard Chartered to believe that Bitcoin could surpass $150,000.
However, at the moment, Bitcoin is struggling to reclaim the $65,000 level, which it has only reached once this month. Currently, it is trading at around $63,000.
According to one analyst, Bitcoin has been consolidating for over two months. In previous instances, Bitcoin consolidated for 64 days before breaking out in February to reach a new all-time high. Last year, it consolidated for 220 days before the breakout.
Another analyst believes that the key to Bitcoin’s rebound lies in its daily relative strength index (RSI).
Data from IntoTheBlock shows that exchange netflows have been negative over the past 30 days, indicating low selling pressure. Among the major cryptocurrencies, only MATIC and DOGE stand out with high exchange inflows.