Ethereum
Analyst explains why the next bull run will be ‘crazier’?
At spot rates, Bitcoin and major altcoins like Ethereum and Solana continue to advance. Despite the retracement earlier today, BTC is firm and trading above the psychological round figure of $60,000. At the same time, ETH and SOL prices are firm above $3,300 and $155.
Bitcoin and Cryptocurrency Prices Rise Despite Low Liquidity
An analyst has identified an anomaly as cryptocurrency and altcoin prices surge, recovering from the June and early July declines. Speaking to X, an observer note that the rally is organic.
It is worth noting that there are no usual catalysts, including a surge in liquidity marked by massive inflows, as one would expect when the market peaks.
As seen in the past, and especially when prices rose in 2021 due to central banks easing around the world or after the approval of Bitcoin spot exchange-traded funds (ETFs) in the United States, there is no indication that prices are rising due to an influx of capital.
At the same time, this happens when the United States Federal Reserve (fed) did not cut rates, as it did between 2020 and 2021, triggering a takeoff now that inflation was supposed to rise, and that is what happened.
What is happening is that Bitcoin and cryptocurrency prices are rising without any major catalysts. A major respite came when the German government finally sold all of its cryptocurrencies on July 12.
This coincided with Bitcoin and cryptocurrency prices rebounding from July lows. This rebound saw BTC break above immediate liquidation levels, now support, to float above $62,000.
Will the next BTC rally be “crazier” and “longer”?
For this reason, the analyst believes that the next bull run will not only be “crazier,” but also longer. At press time, Bitcoin remains strong, above $60,000, and traders expect further gains in the coming days.
Technically, buyers have the advantage now that prices are trading above the median BB for the first time in over four weeks. Buyers are adamant, taking advantage of the selling pressure from July 4-5.
Still, there is optimism that Bitcoin still has room to rebound. A key resistance line to watch in the coming days is $66,000. If this level is breached, the chances of BTC floating above $72,000, an area that was not breached in June, remain high.
This increase could be explained in particular by the hope of a rate cut by the American Fed by the end of the year. More and more operators are betting on several rate cuts by the end of the year.
Goldman Sachs analysts are already convinced Macroeconomic conditions are all conducive to a rate cut. According to the latest data, inflation is slowing while the US labor market is strong.
Main image of DALLE, chart from TradingView