After a period of fluctuations, the cryptocurrency market has experienced a surge in the past 24 hours, delivering remarkable profits for investors. What are the key factors driving this increase ? Let's delve into the details to uncover the secrets behind this impressive rebound.
Bitcoin, the benchmark cryptocurrency, has reached a new historic milestone by hitting an all-time high of $124,474. This marks the second absolute record in just one month, demonstrating growing investor interest in this asset as a hedge against inflation. Despite a Relative Strength Index approaching overbought territory, BTC still appears to have room for growth, with upside potential to $126,000 or even beyond.
However, sellers remain a significant threat to Bitcoin’s stability. If selling pressure intensifies, the price could fall back to $120,000, currently trading at $121,700. Investors should remain vigilant about these risks of trend reversal.
Among notable altcoins, OKB has particularly stood out with a surge of 124% in 24 hours. This remarkable performance follows the burning of 65.25 million OKB tokens by the OKX platform, reducing the circulating supply and creating upward pressure on the price.
Now trading at $104, OKB is attempting to consolidate support at $105. If successful, the altcoin could continue its ascent toward an intraday high of $143, offering an interesting short-term investment opportunity. However, failure to maintain this $105 level could trigger a pullback to $77, wiping out a substantial portion of recent gains.
Beyond individual performances, the entire crypto market is experiencing a significant increase of $130 billion in 24 hours, bringing the total market capitalization to $4.14 trillion. This positive momentum can be explained by a combination of factors, including a favorable inflation report in the United States, renewed investor confidence in digital assets, and a broader recovery in financial markets.
Moreover, TOTAL3 is in full breakout of its trendline, which may signal a final push for altcoins in the coming days.
However, the threat of a trend reversal still looms. If market conditions deteriorate, these recent gains could be quickly erased, signaling a shift in sentiment that could lead to a widespread bearish trend in the cryptocurrency market.
In conclusion, the cryptocurrency market is currently experiencing a period of euphoria, with stunning performances for flagship assets like Bitcoin and OKB. Nevertheless, investors must remain alert to the risks of volatility that persist, as a reversal could quickly tarnish this positive picture.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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