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  • Writer's pictureDavid Manion

Is the crypto rally expected to persist?

Is the crypto rally expected to persist?
Is the crypto rally expected to persist?

Was bitcoin’s latest surge just a last fling before sinking lower, or does it have the legs to continue on upwards?

Just A Narrative Pump?

The current market order flow for sustained moves in the cryptocurrency industry is being debated by analysts and commentators. Volume has been relatively low since late March, leading to a short term relief rally to the upside. Some speculate that the recent surge in ETF filings, including Blackrock's Spot Bitcoin ETF application, Fidelity, Wisdom Tree, Invesco, Valkyrie, and EDX Markets, has caused FOMO among investors. This could be responsible for the recent price action in Bitcoin and crypto, which has been lacking in positive news for some time. However, it's possible that the ETF narrative will eventually lose its impact. Additionally, there is speculation that traditional institutions are working with the SEC to dismantle crypto businesses before offering their own solutions based on crypto innovations.

Is the crypto rally expected to persist? Bullish In The Short Term

Bitcoin appears to be in a strong position for the short term, despite briefly touching $30,800. It is currently forming a bull flag, with a possible need for another touch of the flag bottom. The 4-hour Stochastic RSI has reset to the bottom, indicating a cross up soon. Is the crypto rally expected to persist?

Similarly, Ethereum is breaking out of its own bull flag. However, compared to BTC, ETH has been a laggard and has formed lower highs and lows since September 2022. ETH may have hit a bottom, as it is currently sitting at the 0.618 Fibonacci level against its BTC pair. Additionally, with the ongoing ETH staking narrative, the market supply has reduced significantly, which could be Ethereum's time to shine.

Many Altcoins Will Die

It appears that the altcoins in the crypto market may not experience their usual trend of rising together. Instead, a select few with strong use cases and narratives may be the ones to make significant moves. The crypto landscape is evolving, and it is unlikely that previous cycles where anything could skyrocket will occur again. It is expected that in the future, only the truly valuable cryptocurrencies will succeed.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


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