Altcoins
Fourth quarter expected to deliver best returns
Many are wondering whether the recent cryptocurrency cycle has peaked and whether they should sell their assets in anticipation of buying them back at lower prices, or whether the recent downturns present buying opportunities.
According to analyst Satoshi Stacker, One of the most important macroeconomic factors influencing both crypto and traditional markets is the anticipated rate cut by the Federal Reserve (FED). While Fed Chairman Jerome Powell and other officials have said their decisions are dependent on the upcoming data, they have made several optimistic comments following May and June data indicating a return to disinflation.
The analyst points to a major bullish catalyst that hasn’t gotten much attention: FTX creditors are set to receive about $16 billion in cash payments later this year. A significant portion of those funds are expected to be reinvested into cryptocurrencies, which could drive market prices higher. Even a fraction of those payments re-entering the market could lead to billions of dollars in buying pressure, particularly in altcoins, which require less capital to move their prices significantly.
He said historical data also suggests a seasonal pattern, with the fourth quarter typically providing the best returns for Bitcoin. This year’s U.S. elections add another layer of seasonality, as traditional markets tend to experience a pre-election pullback due to uncertainty, followed by a substantial post-election rally.
Take a look at the Bitcoin price evolution
According to Crypto World analyst Josh, Bitcoin is currently experiencing a bullish divergence, with its price facing resistance. Despite some short-term fluctuations, Bitcoin The overall uptrend remains intact and the 4-day candlestick close is crucial to confirm any trend reversal. Historical trends suggest waiting for confirmation signals before concluding the end of a bull market.
The bullish divergence on the daily chart suggests a temporary relief from the downtrend, but not necessarily a full reversal. Key support levels are at $56,000-57,000 and $51,000-53,000, while resistance lies between $60,000 and $74,000. Recent market activity has seen Bitcoin rally slightly to liquidate positions, with liquidity levels just below $57,000 and around $60,000.
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