Altcoins
3 Bullish Signals Point to Bitcoin and Altcoin Boom
Despite a recent downturn in the global cryptocurrency market, the market cap stands at an impressive $2.11 trillion, up a notable 3.21% over the past 24 hours, according to Coinmarketcap. This positive trend suggests that there could be better days ahead for both Bitcoin and alternative cryptocurrencies. Here are three reasons why BTC and altcoins are set to rise.
1. Expectations of lower interest rates
CME Group Data shows that Wall Street traders are increasingly expecting a Federal Reserve rate cut in September, with the probability of it reaching 72% on July 7.
Lower interest rates typically benefit Bitcoin and other cryptocurrencies. When interest rates are low, returns on traditional, low-risk investments, such as savings accounts and government bonds, decline. This forces investors to seek higher returns in riskier assets like Bitcoin, which have the potential to offer higher returns.
Lower interest rates often lead to an increase in the money supply and liquidity in the economy. With more money available, investors are more likely to invest in a wider range of assets, including riskier ones.
They also lower the cost of borrowing. This means people can borrow money at a lower rate to invest in higher-risk, higher-return assets like Bitcoin, which can drive up the price of those assets as more capital flows into them.
2. Cryptocurrency Market Corrections Aren’t All That Bad
According to several posts by observers and experts on X (formerly Twitter), the cryptocurrency market has undergone more severe corrections in recent years. One author describes the current state of the market as “the calm before the storm.”
Fidelity has officially filed documents for ETF spot etherand VanEck and 21Shares filed for Solana spot ETFs. The current trend line has also been observed in 2019, 2020, and 2023. Touching it led to an altcoin bull market in the following weeks.
Compared to altcoins in 2020, altcoins today are showing a double bottom, higher lows and a bullish RSI.RSI crossover.
3. Bullish Divergence
Despite the recent decline At $55,000, Bitcoin has shown a bullish divergence, with the Relative Strength Index (RSI) rising. This indicates that average gains in recent price movements are greater than average losses, suggesting increased buying pressure and upward momentum in the price of Bitcoin.
A rising RSI often reflects bullish sentiment, which means traders and investors are becoming more optimistic. This can lead to further price growth as more buyers enter the market. Bitcoin’s current RSI is 36, which is considered neutral.