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(Kitco News) - The cryptocurrency market was in consolidation mode on Thursday as many traders took profits following the surge in token prices that began on Tuesday and saw more than $103 billion worth of value added to the total crypto market capitalization.
Optimism for the asset class continues to improve following a barrage of spot Bitcoin ETF filings that began with BlackRock, the world’s largest asset manager, filing on Friday. Valkyrie Investments, which is notably one of the few crypto asset managers that currently has an SEC-approved futures BTC ETF, is the latest company to jump into the spot BTC ETF mix after the firm filed paperwork for its Valkyrie Bitcoin Fund on Wednesday.
Stocks traded mixed on Thursday as investors continued to digest hawkish comments from the Federal Reserve that more interest rate hikes are in store due to persistently high inflation. At the market close, the S&P and Nasdaq were in the green, up 0.37% and 0.95%, respectively, while the Dow finished down 0.01%.
BTC/USD Chart by TradingView
“July Bitcoin futures prices are sharply higher and hit a new contract high in early U.S. trading Thursday,” according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The bulls have the solid overall near-term technical advantage following this week’s strong price gains,” Wyckoff observed before adding a warning that “The market is now short-term overbought, technically, and due for a normal downside correction very soon.”
Market analyst Crypto Tony provided insight into how such a correction may occur, noting that the BTC price action is setting up “a wave 4 correction.”
$BTC / $USD - Update
— Crypto Tony (@CryptoTony__) June 22, 2023
It looks like we are preparing for a wave 4 correction here, as part of the bigger impulse we have going on. The intraday target is $31,000, which is the swing high .. Close above on the daily we go for my main target $32,000 pic.twitter.com/QYkAp4GuDV
Analysis from Rekt Capital indicates that if BTC is able to close the month above $29,300, then there’s a strong chance that it will rally into the $33,000 - $35,000 range in the near future.
If #BTC is able to reclaim ~$29300 as support (blue) before the Monthly Candle Close then $BTC could rally into the $33000-$35000 resistance area (red)#Crypto #bitcoin pic.twitter.com/Mu1xrrMCSe
— Rekt Capital (@rektcapital) June 22, 2023
And MN Trading founder Michaël van de Poppe suggested that the rally seen this week may be the first wave in a new bull market cycle and expects it to extend into the $38,000-42,000 range.
Most likely, this is the first real impulse in this cycle on #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) June 22, 2023
Through that, the 200-Week MA and EMA are holding as support and a big bounce occurred + institutional interest.
I'm expecting continuation towards $38,000-42,000. pic.twitter.com/VVErgpWndc
Mixed performance for the altcoin market
The top 200 tokens in the altcoin market were evenly split between winners and losers as traders looked to rebalance their portfolios in favor of tokens that have ranked higher in terms of social media exposure.
Daily cryptocurrency market performance. Source: Coin360
Top performers include the popular meme coin Pepe (PEPE), which gained 15.11% as many traders are banking on a revival of the meme token frenzy, a 9.6% gain for Conflux (CFX), and a 6.5% increase for SingularityNet (AGIX), Moonbeam (GLMR) and Fetch.ai (FET).
The overall cryptocurrency market cap now stands at $1.17 trillion, and Bitcoin’s dominance rate is 49.8%.
