Top 3 price prediction: After starting May with immense selling pressure leading to massive losses on Tuesday and Wednesday, the crypto market is back in the green, characterized by modest gains, especially for altcoins. Bitcoin had also reversed the trend, clawing back some of the losses accrued this week to hover at $58,818 at the time of writing.

Major altcoins Ethereum, BNB, Solana, XRP, and more were also in the green on Thursday, contributing to the 2.3% spike in the cumulative crypto valuation of $2.3 trillion.

MicroStrategy Announces Decentralized Bitcoin Blockchain Identity Protocol

MicroStrategy, the second-largest holder of the world’s leading digital asset, BTC, has announced plans to build a decentralized identity protocol to run on the Bitcoin blockchain.

According to the company’s Chairman, Michael Saylor, the product called MicroStrategy Orange, will mirror a similar technique to Ordinals referred to as the Bitcoin Inscription DID method.

Saylor unveiled the plan during the Bitcoin For Corporations, a conference conducted on May 1.

MicroStrategy Orange stands out due to its open-source nature. On top of that, the technique does not rely on sidechains and can process at least 10,000 DID. The firm’s GitHub contains more information. The protocol’s overall aim is to make DIDs easily adoptable for institutions and individuals. It will be a method of managing online identities not only securely but also pseudonymously.

Top 3 Price Prediction: Will Bitcoin Reclaim $60,000 This Week

Bitcoin price flash drop tested support at $56,500, ending several months of a winning streak mainly bolstered by the adoption of spot ETFs in the US. The correction occurred approximately two weeks after Bitcoin halving on April 20 and may have been accentuated by internal and external forces.

Internally, the market likely reacted to the jailing of the founder of Binance, Changpeng Zhao, and the dovish Federal Reserve’s stance on inflation and interest rate cuts.

Inflation remains sticky in the US, making the Fed’s goal of 2% inflation seem unattainable in the short term. This means that expectations of early interest rate cuts in 2024 are being shaken vigorously.

Risk asset classes like Bitcoin and crypto will likely remain suppressed, with investors preferring stable investments like bonds. This cuts the flow of money into Bitcoin and crypto, thus hindering price increments.

The Federal Reserve left interest rates unchanged at the end of the FOMC meeting on Wednesday.

Despite the dovish outlook from the regulator, Bitcoin has shown strength on Thursday, rising by 1.3% to $58,818, according to data by CoinGape and CoinGecko.

Meanwhile, the Relative Strength Index (RSI) on the four-hour chart suggests that buyers have the upper hand after recovering from oversold conditions to 42. Its continued movement toward the overbought area, above 70 could call more traders to buy BTC aiming for gains above $60,000.

Top 3 price prediction Bitcoin chart | Tradingview

Some key factors to look for are whether Bitcoin price will close the day above recently reclaimed $58,000 support and move to reclaim the next anchor at the 20-day EMA.

Note that breaking above the red band or $62,000 resistance could mark the beginning of another bigger bullish move to $70,000. On the other hand, losing $56,000 as support may pave the way to more losses targeting $52,000 and $50,000 support areas.

Ethereum, Solana Price Update

Two of the leading altcoins reveal that investor attention is directly on Bitcoin and across other digital asset classes. Ethereum price is on the cusp of retaking support at $3,000. It has increased its value by 2.6% in 24 hours to hover at $2,990 during US business hours.

Solana is among the tokens boasting double-digit gains up to 11%, and trading at $137. Most altcoins in the top 100 show signs of continuing the bullish trend to the end of the week.

The post Top 3 Price Prediction As MicroStrategy’s Bitcoin Identity Protocol Launches, BTC, ETH, SOL Prices To Rally? appeared first on CoinGape.

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