Bitcoin
Why Ethereum and Solana are must-buys this dip
Bitcoin and Ethereum have both suffered significant price drops recently, causing widespread concern among investors. Bitcoins The drop below $55,000 triggered major trading signals, breaking the short-term uptrend that had been in place since last August. Historically, similar corrections have lasted more than two months before a bull run resumed.
VirtualBacon, a cryptocurrency analyst points that the recent market crash is not just about the German sale of 27,000 Bitcoins — it is also involved with broader issues such as rate hikes, presidential election results, SEC decisions, and ETF inflows. In addition, external factors such as Potential sale of Mt. Gox of 142,000 Bitcoins are creating additional market pressures. While the drop may seem alarming, it advises against impulsive reactions.
Institutions are buying the dip
Despite the decline, the good news is that large institutions like BlackRock and Fidelity are buying the dip, signaling strong institutional confidence. The recent correction began on July 4 and is likely to continue through September, aligning with historical mid-cycle corrections that last 60-70 days. Furthermore, Bitcoin’s price action often correlates with the NASDAQ and S&P 500, suggesting that as long as these indices rise, Bitcoin is likely to follow.
Venturing into Altcoins
Expanding his horizons, VirtualBacon turns his attention to altcoins, looking for hidden gems amidst the chaos. He noted that while several altcoins like Solana, Avalanche, and Polygon are expected to see a 10%-20% drop, strong assets like Ethereum and Solana remain worthwhile for accumulation. According to the analyst, both assets are expected to perform well, with Ethereum benefiting from upcoming ETF launches and Solana showing resilience during the recent market turmoil.
Top buying opportunities across all sectors
However, investors are advised to focus on proven performers and consider promising sectors such as AI, gaming, and meme coins. Due to the liquidity issue among many new tokens, the above sectors may outperform as older ones lose value. The expert stated that portfolio adjustments should be made gradually over 2-3 months if considering meme coins or other altcoins.
Will the bull run continue?
The bullfight is expected to resume once Bitcoin breaks above the 21-week EMA and sets a higher low. Patience and strategic accumulation of strong assets are recommended during this period. According to the analyst, key price targets include Bitcoin at $50,000, Ethereum between $2,200 and $2,600, and Solana at $100 and $110.
While the transfer of funds to exchanges suggests that Germany may have intentions to liquidate, it does not confirm that the assets were sold. Furthermore, the FTX bankruptcy estate is expected to distribute around $16 billion in cash to crypto investors around September or October. This distribution is expected to act as a positive catalyst for the market in the coming months.
By advocating strategic moves, identifying key levels, and exploring opportunities across different sectors, he empowers investors to weather the storm and confidently capitalize on emerging trends.
Read too: Cryptocurrency Market Roundup: Bitcoin Surges Above $59,000, Ethereum Above $3,100, While Pepe Falls