Cryptocurrencies have been quick to regain momentum following Jerome Powell’s speech which sent Bitcoin and altcoins spiralling. As per the Fed Chair, the Federal Open Markets Committee (FOMC) members were not convinced interest rate cuts were viable or achievable by March. As a result, markets turned bearish with BTC dropping to test support at $42,000.

Altcoin majors like Ethereum (ETH), Solana (SOL), and XRP similarly lost grip, although temporarily. After a quick dip near $42,000, Bitcoin bounced back on Friday, gaining 2% to reach $43,133. This positive momentum can be attributed to several factors.

First, there’s growing optimism surrounding the upcoming Bitcoin halving, which could potentially trigger a price increase. Additionally, the launch of spot Bitcoin ETFs is making it easier for investors to enter the market, further fueling demand, CCData’s latest market report shows.

Our latest Digital Asset Management Review shows a surge in the sector, driven by new $BTC spot ETFs.

Grayscale’s $GBTC leads with $21.4bn AUM. iShares IBIT & Fidelity’s $FBTC exceed $2.0bn.

ProShares at $2.02bn faces volume decline as investors pivot from futures to spot ETFs pic.twitter.com/LQD7bFE7o3

— CCData (@CCData_io) February 1, 2024

Furthermore, news that FTX creditors may be fully compensated and Celsius is selling assets to repay creditors is boosting investor confidence.

Finally, the increasing involvement of institutional investors in digital asset products is contributing to the overall bullish sentiment.

While predicting Bitcoin’s future trajectory remains challenging, this recent upswing suggests a more positive outlook driven by a combination of fundamental and market-driven forces.

Read also: Bitcoin’s Coveted $88,000 Peak In 2024 Holds Despite Powell Scattering Hope For March Rate Cut

Bitcoin Price Outlook In 2024, Is $100,000 ATH Possible?

Despite the drop to $42,000, the bellwether cryptocurrency respects the walls of an ascending channel. If bulls uphold its (BTC) position above key moving averages, including the 20-day Exponential Moving Average (EMA), the 50-day EMA, and the 200-day EMA, sentiment will continue to improve, keeping the uptrend steady.

An incoming buy signal from the Moving Average Convergence Divergence (MACD) indicator would back the bullish theory, and potentially flip Bitcoin above the channel’s middle boundary resistance.

Bitcoin price chart

Should Bitcoin step above the hurdle at $44,000, a FOMO-driven rally could erupt, and potentially trigger a short-term to medium-term rally to $48,000. Many analysts such as Rekt Capital believe BTC’s recent plunge under $39,000 was meant to ignite re-accumulation “heading into the halving.” Hence, positive sentiment is crucial for Bitcoin’s journey to the previous all-time high and subsequently to a new all-time high ($100,000.).

#BTC

This cycle has been a story of Re-Accumulation Ranges, heading into the Halving$BTC #Crypto #Bitcoin pic.twitter.com/PFHAIEg3vC

— Rekt Capital (@rektcapital) January 31, 2024

Support at $43,000 will be important over the coming days, as Bitcoin price oscillates between the range high of $44,000 and the range low of $42,000. The trajectory to $100,000 will depend on the impact of the halving and increasing demand for BTC, especially from institutions investing in spot ETFs.

Has The Altcoin Q1 Hype Started?

The first month of the year was characterized by hype and optimism for the approval of the spot ETF in the US. However, due to the run from October to December, cryptos dumped as investors resorted to selling the news.

Altcoins such as Solana and Chainlink which led the Q1 season struggled to maintain momentum in January amid growing uncertainty. The top performers are back in action, as highlighted by Rekt Capital, suggesting that the “market may be gearing up for a Q1 altcoin Hype Cycle.”

Both $SOL & $LINK kickstarted the 1st wave of Altcoin rallies months ago

They were the top performers in the Q4 Altcoin Hype Cycle of 2023

Both #SOL & #LINK are rallying today, outperforming yet again

Market may be gearing up for a Q1 Altcoin Hype Cycle#Solana #Chainlink pic.twitter.com/6mqclYIReQ

— Rekt Capital (@rektcapital) February 2, 2024

Solana is back above $100 after respecting low-range resistance of $98, up 5.6% on the day – live market data by CoinMarketCap. Chainlink is standing out with a double-digit gain on Friday, rising by 14% to $17.88. Other altcoins performing well are Immutable with a 13.5% increase, Cardano with a 6% spike, and Avalanche rising 8.4%.

Related Articles

Jupiter Airdrop: Traders Nab Over $1 Mln Profit, What’s Next For JUP? 
Crypto Price Prediction For February 2: SOL, IMX, AVAX 
Top 3 Altcoins To Buy Today February 1: Solana (SOL), Jupiter (JUP), MANTA 

The post Bitcoin Price Eyes Parabolic Rise In 2024 But Has Q1 Altcoin Hype Cycle Started?  appeared first on CoinGape.

---

Filed under: News - @ January 1, 1970 12:00 am