BTC and ETH Rebound Amid Mixed Market Sentiment and Caution
Bitcoin and Ethereum have shown positive movement over the past 24 hours, with BTC rising to $116K and ETH exceeding $3,900. Research firm 10x Research identified several catalysts pushing these cryptocurrencies toward significant levels.
- 10x Research forecasts Bitcoin may retest its breakout point at $111,673 before a favorable entry opportunity.
- On August 7, Bitcoin dropped to $111,643 but quickly rebounded to $117,000.
- Analysts caution that low volatility and weak macroeconomic factors could limit bullish momentum.
- Political developments regarding crypto access may also affect market sentiment.
- Bitcoin recently rallied to the "blue zone" target identified by Swissblock, with a next target at $120,500.
- Retail accumulation remains robust, with small investors ("Shrimps" and "Fish") absorbing supply faster than it is created.
Ethereum has outperformed Bitcoin relatively, with the ETH/BTC ratio increasing nearly 75% since May's lows, testing resistance levels. Analysts suggest that if this trend continues, altcoin gains could accelerate.
- Michaël van de Poppe predicts potential altcoin returns of 200-500% within two to four months.
- However, historical data indicates August and September are typically weak months for cryptocurrencies.
- Q3 has been Ethereum’s weakest quarter since 2016, averaging a return of only 6.48%.
Investors should monitor these developments as they could significantly impact market dynamics in the coming weeks.