The cryptocurrency market has grown significantly in value since the start of the year, with all major currencies up more than 50%, with Bitcoin leading the way, up 52% in 2024. Much of the recent growth can be attributed to gains in January. The 10th Bitcoin ETF ruling from the U.S. Securities and Exchange Commission (SEC) and the upcoming Bitcoin halving, but there are signs of a recovery in the crypto market from the depths of last year.
The entry of institutional investors into the space has also played a major role in the soaring market, with ETF approvals embodying the concept that cryptocurrencies are securities. However, technological advancements and innovations in the space cannot be ignored. Unlike the 2021 bull run which was primarily driven by pure speculation and hype (the NFT hype train), the current market is driven by technological advancements, community and developer engagement, and support from global regulators.
Bitcoin has been forming a bull flag pattern recently
Cryptocurrency 4-hour price recently formed a bull flag pattern. The "bull flag" here refers to a pattern in technical analysis that, as the name suggests, looks like a flag on a pole.
In this pattern, a sharp uptrend is followed by a period of downward consolidation. The uptrend forms the pole, while the consolidation period acts as the flag.
When price is trapped inside a flag, it will tend to find resistance at its upper line, so a top may form there. Similarly, the lower line can act as support, thereby promoting bottom formation.
The bull flag is generally considered a continuation pattern, meaning that once the consolidation period ends, the current trend (i.e. the flag trend) will continue.
This happens when a resistance line is broken. The uptrend that emerges from such a breakout is likely to be the same height as the bar. However, if the asset falls below the support line, the pattern may be deemed invalid.
As you can see from the chart, the 4-hour Bitcoin price appears to have been consolidating within a bull flag over the past few days. It is also evident that over the past day, BTC has been climbing above the pattern’s resistance line.
This could mean that the cryptocurrency is preparing to break out of this formation. Of course, the asset must show more momentum before a breakout is confirmed.
Recommend 4 cryptocurrencies that are about to gain 100 times this week!
1. SHIB
Shiba Inu experienced a staggering surge of approximately 150% in March.
Historical data shows SHIB's performance in April was mixed, with an attractive average return of 13.7% but a median of 6.41%.
Despite the volatility seen in the past April, SHIB's strong rally in April 2021 has sparked optimism.
Throughout March, the value of Shiba Inu (SHIB) surged by about 150%, undoubtedly becoming the focus of the global investment stage. The surge marks one of SHIB's most successful months in recent memory.
SHIB is currently trading at over $0.00003 per token, reaching its highest level since February 2022, boding well for its future performance trajectory.
2.NEAR
NEAR is up 109% at $7.72, with plenty of room for growth.
NEAR rose to $7.72, a strong increase of 109.10% in one month and an impressive 597.05% in six months. This marks a strong uptrend, but the all-time high of $20.70 suggests that there is room for growth. Considering the resistance levels of $4.49 and $5.11, a break above these resistance levels could mean continued gains, consistent with a buy signal from the 10-day moving average of $6.97. However, the MACD shows a sell signal, indicating that a pullback is possible in the near term.
Longer term, the 100-day moving average of $4.17 supports buying, reflecting persistent positive sentiment. If the price drops to support at $2.97 or even $2.07, buyers may see an opportunity to invest at a lower cost. However, different signals, RSI and Stochastic RSI suggest neutral, indicating market indecision.
3.ADA
Cardano has seen significant growth over the past six months, rising as much as 160.24%, showing a strong upward trend. The current price is $0.650, indicating that further gains may be possible if the trend continues. However, a move below the recent resistance at $0.751 suggests that Cardano may face challenges breaking out and maintaining momentum. The recent positive changes could lead to a higher valuation, which could lead to a test of the second resistance level at $0.848 in a favorable market environment.
On the downside, if the market turns, support near $0.516 may come into play. While the simple moving averages (10-day at $0.637 and 100-day at $0.595) suggest stability at the moment, they also suggest that price declines may be cushioned. However, a move below the second support level at $0.378 could signal a larger structural shift in the market that could lead to more severe losses.
4.OP
Optimism is a low-cost, lightning-fast secondary blockchain for Ethereum. Optimism Ecosystem is an overview of the applications and integrations in the Optimism ecosystem. Optimism solves the actual needs of developers and users. The Optimism Foundation is a non-profit organization dedicated to developing the Optimism Collective.
OP is its native governance token and is mainly used for governance protocols.
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