Altcoins
Q4 expected to deliver best returns
Many are wondering whether the recent cryptocurrency cycle has peaked and whether it is time to sell assets in anticipation of buying them back at lower prices, or whether recent declines offer buying opportunities.
According to analyst Satoshi Stacker, One of the most important macroeconomic factors affecting both cryptocurrency and traditional markets is the expected rate cuts from the Federal Reserve (FED). While Fed Chair Jerome Powell and other officials have stated that their decisions depend on upcoming data, they have made several optimistic comments following May and June data that indicated a return to disinflation.
The analyst points to a major bullish catalyst that hasn’t received much attention: FTX lenders are expected to receive about $16 billion in cash payments by the end of the year. A significant portion of these funds are expected to be reinvested in cryptocurrencies, potentially driving market prices higher. Even a fraction of these payments re-entering the market could lead to billions of dollars of buying pressure, particularly in altcoins, which require less capital to significantly move their prices.
He said that historical data also suggests a seasonal pattern, with Q4 typically offering the best returns for Bitcoin. This year’s U.S. election adds another layer of seasonality, as traditional markets tend to pull back before the election due to uncertainty, followed by a substantial post-election rally.
Check out the Bitcoin price trend
Second Crypto World analyst Josh, Bitcoin is currently experiencing a bullish divergence, with its price meeting resistance. Despite some short-term fluctuations, Bitcoin the overall uptrend remains intact and the close of the 4-day candle is crucial to confirm any trend reversals. Historical trends suggest waiting for confirmation signals before concluding the end of a bull market.
The bullish divergence on the daily chart suggests a temporary relief from the downtrend, but not necessarily a complete reversal. Key support levels are at $56-57K and $51-53K, while resistance is found between $60K and $74K. Recent market activity has seen Bitcoin rally slightly to liquidate positions, with liquidity levels just below $57K and around $60K.
Read also: Will These Ethereum-Based Altcoins Dominate the Bull Market?