This week, Bitcoin’s price took a dip due to higher-than-expected consumer price index (CPI) report indicating persistent high inflation despite recent interest rate hikes by the US Federal Reserve. Interestingly, investors were prepared for this event, and both BTC and ETH prices managed to recover from initial losses and ended the day in positive territory.
An analysis of Bitcoin’s market structure reveals that despite the recent drop post-CPI report, the price has been trading within the same range for the past 122 days. Additionally, Bitcoin’s futures open interest is at a record high, while its volatility is close to all-time lows, a situation that has historically preceded significant price movements.
However, predicting the direction of these movements remains challenging. As Bitcoin continues its trend of the last 4.5 months, it might be time to explore emerging trends and opportunities elsewhere.
New rotations will emerge
Following the Ethereum Merge, ETH has lost its shine and reflects the prevailing bearish market sentiment. With a 30% decline from its high of $2,000, much of the speculative capital that supported the bullish narrative around the Merge may have shifted to stablecoins in search of new investment prospects.
Furthermore, Cosmos (ATOM) has defied the market downtrend with a substantial rally from $5.40 to $16.85. Oversold conditions and excitement around Cosmos 2.0 supported this bullish momentum. The revised Cosmos white paper indicates that the supply of ATOM will adjust dynamically based on staking demand, making it an intriguing asset to watch.
Keep an eye on Ethereum Network activity
Following the Ethereum Merge, Ether emissions have dropped significantly. Despite price corrections, monitoring Ethereum network activity, developments in ETH staking in DeFi and institutional products, and fluctuations in gas fees related to network usage could offer insights into future price movements.
Post-Merge, BTC price action will likely remain king
While new trends may emerge in altcoins, it’s essential to consider the broader economic context in which cryptocurrencies operate. Global economies face challenges like high inflation and volatile bond markets, impacting investor sentiment. Bitcoin, being the largest crypto asset by market cap, continues to influence micro trends. Traders should assess risks carefully and consider external factors affecting crypto prices.
This newsletter was authored by Big Smokey, from The Humble Pontificator Substack, providing market insights, trend analysis, and early-bird research on emerging crypto market trends every Friday.
The views expressed are those of the author and may not reflect those of Cointelegraph.com. All investment decisions involve risk, so conduct your research before making any choices.
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