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Highlights
- The Bitcoin’s Fear and Greed Index at 26% accentuates a negative sentiment among market participants.
- A potential breakout from Toncoin’s range formation will resume a direction trend for buyers.
- Solana and Pepe coin developed a bullish continuation pattern to replenish the exhausted bullish momentum from the prior rally.
The cryptocurrency market experienced a significant bearish turn on the first of July, with Bitcoin plunging from $63,794 to a low of $53,500. This decline is largely due to substantial BTC liquidations by the defunct Mt Gox exchange and the U.S. and German governments. The selling pressure also affected altcoins, leading to an extended correction phase.
Ki Young Ju, CEO of CryptoQuant, recently highlighted that fears around government-seized Bitcoin sales are overblown. Since 2023, $224 billion has flowed into the Bitcoin market, with only $9 billion (about 4%) from government-seized BTC.
Govt #Bitcoin selling is overestimated.
$224B has flowed into this market since 2023. Government-seized BTC contributes about $9B to the realized cap.
It’s only 4% of the total cumulative realized value since 2023. Don’t let govt selling FUD ruin your trades. pic.twitter.com/12fy2sKsXH
— Ki Young Ju (@ki_young_ju) July 5, 2024
Ju advises traders not to let fear, uncertainty, and doubt (FUD) affect their decisions, as the actual impact of these sales is minimal compared to the overall market inflows.
Thus, with the broader market trend remaining bullish, this current correction may present a valuable dip-buying opportunity for investors looking to recover losses from the previous pullback.
Also Read: Bitcoin Price Analysis: How Bull Flag Defends $1 Trillion Market Cap for BTC
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Altcoins- Toncoin (TON)
Toncoin (TON) is the native cryptocurrency of The Open Network (TON) that offers a scalable, secure, and user-friendly blockchain platform for decentralized applications (dApps) and payments.
Amid the recent market correction, Toncoin emerged among the few cryptocurrencies that withstand the intense selling pressure. An analysis of the daily chart shows the TON price trading in a narrow range spread between the $8.21 and $6.7 horizontal levels.
On June 5th, the altcoin rebounded $6.7 with a long-wick rejection candle indicating the buyers continue to defend this support. The bullish turnaround uplifted the asset 13.8% to trade at $7.63, while the market cap jumped to $19.1 Billion.
A bullish breakout from the $8.2 resistance will signal the end-of-consolidation trend and bolster buyers to chase the potential target of $9.4, followed by $10.4.
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Solana (SOL)
Solana is a high-performance blockchain platform designed for decentralized applications (dApps) and crypto-currencies. It focuses on delivering scalability without compromising decentralization or security.
SOL, the native cryptocurrency of the Solana network, showed notable resilience above $122 despite the wide market correction. The mentioned support coinciding close with the lower trendline of the triangle pattern has propelled the asset by 18.6% to reach $142.8. Consequently, the market cap jumped to $65.8 Billion.
If the pattern holds true, the SOL price is poised to witness a temporary sideways action to recuperate its prevailing bullish momentum.
A potential breakout from the overhead trendline will signal the uptrend continuation and aim for an initiation target of $326.
Also Read: Spot Bitcoin ETFs Saw $143 Million Inflows on Friday, Institutions Buying The Dips?
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Pepe Coin (PEPE)
Pepe Coin (PEPE) is a meme-based cryptocurrency inspired by the popular internet meme character Pepe the Frog. For the past seven weeks, the PEPE price has witnessed a steady downtrend under the influence of a flag pattern.
The short counter trend move carried by this pattern with two downsloping trendlines could bolster buyers to recuperate exhausted bullish momentum. With a 9.5% jump today, the PEPE price developed a morning star reversal candle at the channel’s lower trendline indicating the bullish setup is intact.
By the press time, the PEPE price trades at $0.00000973, while the market cap wavers around $4.083 Billion. A potential reversal should assist buyers breach the overhead trendline and flip it into a suitable support.
The post-breakout rally could push the asset to $0.00000135, followed by $0.00001725.
Frequently Asked Questions (FAQs)
1. What is the Fear and Greed Index in the crypto market?
2. What is a morning star reversal candle?
3. What is a flag pattern in technical analysis?
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