Opinions among analysts are divided regarding the current state of the market. Some argue that a 20% decline is typically necessary for the market to reverse its momentum, while others believe that the top cryptocurrencies have already reached a local bottom.
Bitcoin has been experiencing a period of consolidation for over two months now. Despite its surge from $57,000, one analyst suggests that it is still in a “prime buy zone.”
As we approach the weekend, major cryptocurrencies are trading slightly higher. However, meme coins are seeing more significant gains compared to Bitcoin, which is struggling to break the $63,000 mark.
The overall market cap has increased by 3.36% to reach $2.33 trillion, reflecting the sideways trading nature of the market. Most cryptocurrencies have seen gains ranging from 2% to 4%, with only TRON and LEO experiencing losses among the top 100 cryptos.
Meme coins, on the other hand, have seen higher gains overall. Book of Meme’s BOME has seen the most significant climb in this category, increasing by 12.7% to trade at $0.01157 and enter the top 100. Dogwifhat has gained 11.5%, while Floki and Bonk have each seen a 6% increase. The industry’s two largest meme coins, Shiba Inu and Dogecoin, have gained just under 4%.
Dogwifhat, in particular, appears to be revitalized, reaching $3 for the first time since its midweek collapse from $3.6. This Solana-based meme coin is attracting the attention of whales, with Lookonchain revealing that one address has spent $4.2 million in USDC to purchase 1.4 million WIF at just under $3. This address was one of the early WIF traders, earning $8 million from some early trades.
The recent resurgence in the crypto market follows an endorsement from former president Donald Trump. Trump expressed his support for the industry during an event, stating that he would champion its interests if he wins the election in November.
Analysts at Standard Chartered believe that the Trump administration, combined with ongoing fiscal challenges, could push Bitcoin’s price beyond $150,000.
However, Bitcoin is currently struggling to reclaim the $65,000 level, which it has only reached once this month. At present, Bitcoin is trading at around $63,000.
According to one analyst, Bitcoin has been consolidating for over two months. In previous instances, Bitcoin consolidated for 64 days before breaking out in February to reach a new all-time high. Last year, it consolidated for 220 days before the breakout.
Another analyst believes that the key to Bitcoin’s rebound lies in its daily relative strength index (RSI).
Data from IntoTheBlock shows that exchange netflows have been negative over the past 30 days, indicating low selling pressure. Among the major currencies, only MATIC and DOGE stand out with high exchange inflows.