Ethereum
Why Ethereum and Solana Are Must-Buys in This Bear Market
Bitcoin and Ethereum have recently experienced significant price drops, sparking widespread concern among investors. Bitcoin Bitcoin’s price drop below $55,000 triggered major trading signals, breaking the short-term bullish trend that has been going on since last August. Historically, similar corrections have lasted for more than two months before a bullish period resumed.
VirtualBacon, a Crypto Analyst points It has been pointed out that the recent market crash is not limited to the German sale of 27,000 bitcoins. It is also linked to broader issues such as rate hikes, presidential election results, SEC decisions, and ETF inflows. In addition, external factors such as Potential sale of Mt. Gox The 142,000 bitcoins that have fallen are creating additional pressure on the market. While this drop may seem alarming, he advises against knee-jerk reactions.
Institutions buy the dip
Despite the decline, the good news is that large institutions such as BlackRock and Fidelity Investors are buying the dip, reflecting strong institutional confidence. The recent correction began on July 4 and is expected to continue through September, aligning with historical mid-cycle corrections that last 60-70 days. Additionally, Bitcoin’s price action often correlates with the NASDAQ and S&P 500, suggesting that as long as these indices are rising, Bitcoin is likely to follow.
Venturing into Altcoins
Expanding his horizons, VirtualBacon turns to altcoins, looking for hidden gems amidst the chaos. He noted that while several altcoins like Solana, Avalanche, and Polygon are expected to see a 10-20% decline, strong assets like Ethereum and Solana remain attractive for accumulation. According to the analyst, both assets are set to perform well, with Ethereum benefiting from upcoming ETF launches and Solana showing resilience during the recent market turbulence.
The best buying opportunities in all sectors
However, investors are advised to focus on proven players and consider promising sectors like AI, gaming, and meme coins. Due to the liquidity issue of many new tokens, the above sectors may outperform as older ones lose value. The expert said that portfolio adjustments should be made gradually over 2-3 months if considering meme coins or other altcoins.
The bull run will continue, what if?
The bull run is expected Bitcoin price is expected to recover when it breaks above the 21-day weekly EMA and establishes a higher low. It is recommended to be patient and strategically accumulate strong assets during this period. According to the analyst, key price targets include Bitcoin at $50,000, Ethereum between $2,200 and $2,600, and Solana between $100 and $110.
While the transfer of funds to exchanges suggests that Germany may be planning to liquidate, it does not confirm that the assets have been sold. Furthermore, the FTX bankruptcy estate is expected to distribute approximately $16 billion in cash to crypto investors around September or October. This distribution should act as a positive catalyst for the market in the coming months.
By recommending strategic actions, identifying key levels and exploring opportunities across different sectors, it enables investors to weather the storm and confidently capture emerging trends.
Read also: Crypto Market Preview: Bitcoin Surges Past $59,000, Ethereum Past $3,100, as Pepe Falls