With Bitcoin’s 3rd Halving about to happen, cryptocurrency buyers continue to push the price to higher levels, trying to remove any bearish intent for the near term. Can this positive sentiment be maintained for a long time ?, Let’s analyze the current situation to make crypto predictions of BTC, ETH and XRP.
If Bitcoin goes up, the others will follow
Bitcoin’s capitalization occupies over 60% of the total crypto market. This dominance makes a good part of its movements affect the other participants in the ecosystem.
Yesterday the market aroused bullish sentiment, just a few hours after the 2nd largest batch of Bitcoin options of 2020 expires.
Today we wake up green, but eliminating part of yesterday’s profits. Bitcoin is trading at $ 7,545, Ethereum at $ 188.88, and XRP at 0.1950. Furthermore, it should be noted that with this we have the basis for our predictions.
This Bitcoin jump above resistance at $ 7,450 is a good bullish sign, and could continue to drag the crypto market higher for the next few days, plus it is signifying a complete elimination of all losses caused by the sharp drop in March.
Three Arrows Capital Co-Founder Kylie Davies told CoinDesk that thanks to Bitcoin’s solid macro fundamentals, we are seeing buying interest return.
With the close expiration of the options block, there is a general expectation of increased volatility, and so far, it is generating profits.
Financial markets recover
In the United States, the S&P 500 fell less than 1% during the week, remaining stable despite volatility at this time of uncertainty.
Gold generated gains of just over 1%, with a downward trend for the short term.
WTI oil, despite its precipitous drop to negative territory, recovered and is currently trading at around $ 16.
The crypto market accompanies this feeling of recovery, the question is whether it will also be correlated with other markets, in the event of a further sharp decline.
There is still a negative sentiment, motivated by the decrease in risk exposure by investors; The truth is that if it happened, it would be really catastrophic for Bitcoin, because with the arrival of Halving, many miners would be working at a loss in case the recent minimum zone is reached again.
So far, it seems that the large holders do not want to get rid of their belongings, the vision is set in the medium term.
Bitcoin Stock to Flow for crypto predictions
One of the most popular metrics for making BTC predictions is Stock to Flow, proposed by the famous crypto analyst PlanB.
The metric indicates a number that shows how many years, at the current production rate, are required to reach the current stock. The higher the number, the higher the price.
With just the current demand for Bitcoin, the price should at least double months after Halving, taking into account that with this event the production of coins per validated block would be halved.
The model proposed by PlanB has been quite successful in the past. According to the metric, BTC will hit a new all-time high before the end of the year.
Bitcoin’s long-awaited appreciation after Halving will undoubtedly drag other altcoins, ETH and XRP will be no exception.
Technical analysis for BTC, XRP and ETH crypto predictions
BTC has escaped over the top of the consolidation it was in, and is trying to maintain a valid break. Immediate resistance at $ 7,300 was broken.
If the bullish momentum continues, $ 8,150 will be reached without a doubt. Then $ 9,300 and $ 10,300 could be major hurdles.
The daily trend continues to be bullish, with a clear succession of higher and lower lows, and it does not appear to be willing to lose its strength for the short term.
Ethereum’s daily chart shows a scenario quite similar to that of the largest cryptocurrency. A succession of ever higher minimums can be observed.
The resistance at $ 188 is being an immediate obstacle to the continuation of the trend, but it will most likely be traversed in the coming hours.
If this continues, Ethereum could easily reach USD 250 in the short term.
On the 3rd cryptocurrency by market cap chart, history repeats itself, bears are unable to break supports, thus leaving the temporary bullish trend intact.
If the current bullish sentiment continues, XRP could hit $ 0.24 anytime soon.
The situation is quite tense in the markets, and cryptocurrencies are not escaping from it.
Right now, Bitcoin is in a pretty risky situation, since to fall back to the par of the traditional markets, the consequences would be quite serious for the ecosystem in general.
The security of the BTC network would be compromised if a large outflow of computing power occurs, which would decrease confidence in the project for the short term.
However, what is currently happening is a sign that the bulls continue to defend the price of Bitcoin, and with this, the other cryptocurrencies, including ETH and XRP, will benefit.
Intrinsic value is attracting interest again; And it is not for less, the characteristics of Bitcoin make it have a position of advantage within the markets at the moment, where the physical has more and more problems, and the digital advances without any problem, with an adoption that grows by obligation.