On Saturday, the cryptocurrency market showed a decrease in its previous level of volatility, with a 1.5% drop in the prices of Bitcoin and Ethereum. Despite this, profit-taking in the crypto market remains high, with over $98 million liquidated in the past 24 hours. Analysts believe that the crypto market is currently in a period of calm before the next bout of volatility.
Analyst Rekt Capital predicts that the next few weeks will be a crucial moment for the entire cryptocurrency market. If the previous rally continues, it would signal the end of the bear market and the start of a multi-week consolidation stage.
However, if there is a significant drop below $18k, a bearish trend could be indicated by a death cross between the 50 and 200 WMAs.
A similar narrative has been shared by on-chain analytic firm Santiment which cited a significant spike in whale transactions on altcoins.
According to Santiment, Ethereum traders are less convinced that the bull case scenario will persist in the coming weeks. As such, a significant increase in Ethereum profit-taking has been recorded.
DonAlt’s Analysis
According to popular pseudonymous crypto trader DonAlt in a recent YouTube video, the crypto market has more upsides in the coming months. However, the analyst warned if Bitcoin closes February below $20.7k, the bullish thesis will be invalidated.
“You have a lot of upsides. I think the upside on the monthly is basically if you don’t want to be too greedy, is $34,000,” DonAlts noted.
The analyst shared a similar thought on Ethereum, which hit $17k for the first time in months. As such, the analyst thinks Ethereum will hit $2.5k if the bullish thesis is not invalidated in the coming weeks.
With conflicting opinions from different experts, the future of the cryptocurrency market remains uncertain. Some predict a continuation of the bull market, while others see the possibility of a bearish trend. With so much at stake, it’s important to stay informed and make informed decisions.
