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Bitcoin Faces Potential Downturn As Analysts Eye 'Second Danger Zone' — But What Happened To 'Memecoin Supercycle?'

Published 29/04/2024, 04:10
Bitcoin Faces Potential Downturn As Analysts Eye 'Second Danger Zone' — But What Happened To 'Memecoin Supercycle?'
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Benzinga - As Bitcoin (CRYPTO: BTC) faces some uncertainty, the crypto world is buzzing with talk of the “Memecoin Supercycle.”

Bitcoin Faces ‘Second Danger Zone’

Bitcoin is facing a challenging moment, with a possible downturn on the horizon, as warned by a pseudonym crypto analyst, RektCapital. Comparing the current correction to Bitcoin’s price action around the 2016 halving, the analyst foresees similarities in the potential for two corrective waves.

RektCapital suggests that Bitcoin might experience another pullback in the next couple of weeks, possibly remaining in a “post-halving danger zone” until the following month.

Emphasizing Bitcoin’s critical support level of around $60,000, the analyst indicates its importance in potentially enduring the forthcoming weeks’ volatility.

Whale Makes Waves With $77.67M Bitcoin Deposit

A significant Bitcoin whale has made waves in the crypto market by depositing a whopping $77.67 million worth of BTC into the Kraken exchange. This sizable transaction, totaling 1,200 Bitcoin, caught the attention of market watchers, especially considering the whale’s previous accumulation of 24,755 BTC valued at $1.68 billion.

The whale’s average purchase price during the accumulation period was $68,051 per Bitcoin. Crypto analysts note that exchange inflows from Bitcoin whales have surged to their highest point in five months, indicating a potential trend of significant holders cashing in profits, possibly foreshadowing a substantial price correction in the near future.

See Also: Meme Coins Are ‘A Pure Ponzi’ And ‘Destroying Crypto,’ Says Trader Who Thinks Dogecoin Was Different

Crypto Analyst Predicts 260% Surge For This Altcoin

Cryptocurrency strategist Altcoin Sherpa predicts an impressive surge in the value of Solana (CRYPTO: SOL), forecasting a 267% increase by the end of 2024, potentially surpassing $500. He suggests that acquiring Solana at current levels could yield significant gains, emphasizing potential future profitability.

Additionally, Altcoin Sherpa highlights opportunities in AI-focused cryptocurrencies Fetch.ai (FET) and Render (RNDR), anticipating favorable buying levels amidst market volatility. He suggests starting to accumulate these coins at specific price levels for potential rebounds and rallies.

What Happened To The ‘Memecoin Supercycle’? Ivan Crnogatić analyzed the current state of meme coins and whether the “memecoin supercycle” is coming to an end in his weekly column “Mad Crypto Alpha.” He delved into why venture capitalists (VCs) hold negative views toward meme coins, citing concerns about industry legitimacy and regulatory scrutiny.

Crnogatić also pointed out that VCs have contributed to the rise of meme coins through their “tokenomics” strategies. He also discussed the recent performance of top meme coins, noting significant declines in their value over the past month.

Despite these challenges, Ivan suggested that the market may witness a consolidation into more established winners. He remained optimistic about Bitcoin’s potential for further growth, especially given geopolitical instability and demographic changes. Ultimately, Ivan concluded that the memecoin supercycle may not be over yet, hinting at a potential resurgence in the near future.

Price Action: Bitcoin was last trading down over 2% at $62,560.45. But, it has surged by 42.88% year to date, according to data from Benzinga Pro.

Read Next: Holding 10,000 Dogecoin Could Make You A Millionaire, Predicts Crypto Analyst

Image Via Shutterstock

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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