It’s been a while since I’ve given you all a full status update on the crypto market. A lot has happened since our last major update. As you know, things tend to move very fast in a crypto bull market.

A few weeks in crypto can feel like years compared to traditional markets. It’s a bit like that scene from Christopher Nolan’s Interstellar in which every hour on Miller’s foreign planet is seven years back on Earth.

Crypto trading’s 24/7 digital nature and status as a new emerging asset class result in rapid price swings. Traditional investors must adapt to comprehend market velocity. Unlike traditional markets, where trading hours are limited, crypto operates continuously, allowing rapid responses.

Investors should leverage speed by staying informed and vigilant and by adopting agile strategies. By embracing the crypto market’s accelerated pace, investors can capitalize on opportunities and navigate market volatility more effectively.

Bitcoin Update

By now you know that Bitcoin (BTC) has blasted through its old all-time high of $69,000. Now it has established itself comfortably above the psychological level of $70,000 and is trading for $72,000+. There will probably be some retests of $70,000 and the previous all-time high of $69,000 in the days to come. That’s a necessary step in the process before BTC can truly enter price discovery mode.

Bitcoin has major momentum on its side, and it’s foolish to fade the King of Crypto when it’s running. We need to watch out to see if BTC can fully cement itself above the $70,000 level and climb higher.

However, now is not the time to add to your Bitcoin position. A correction is bound to come at some point as we near April’s halving event. When that correction comes, we’ll take action, swiftly.

Ethereum Update

Recently, Ethereum (ETH) has lagged behind Bitcoin. Every time ETH starts to outpace BTC, the rally is short-lived. I expect that to change at some point in the months to come. However, Ethereum seems to have run into tough resistance at the $4,000 level. It has struggled to break above that level all week.

You can see that ETH has been growing at a very steady and sustainable pace for months. By comparison, Bitcoin has grown through multiple short and violent spurts. That has resulted in ETH with a Relative Strength Index (RSI) score of a little over 68. Bitcoin’s RSI score is slightly higher at 71.

RSI scores can be used to measure if an asset is oversold or undersold, so a lower number in this case is better. This shows that Ethereum can explode at any point moving forward, and there is a lot of untapped potential. ETH is coiling up and waiting for a major breakout, and there are plenty of reasons to be bullish.

The first reason is that Ethereum just successfully rolled out the Dencun upgrade which significantly lowered fees on Layer 2 scaling protocols. If that seems like a foreign language to you, don’t worry. I’ll be releasing articles in the weeks to come that will explain how Ethereum’s ecosystem works and how Layer-2 solutions expand its capabilities.

Put succinctly, it’s currently much cheaper to transact on Ethereum Layer 2 solutions, which should promote growth in network activity. Higher network activity and higher usage lead to the purchase of more ETH which results in higher prices. It’s a net positive.

The second bullish catalyst for Ethereum is the increasing potential for the release of Ethereum exchange-traded funds (ETFs). The same Wall Street giants that released the Bitcoin ETFs in January have applied to issue spot Ethereum ETFs as well. We can see what the Bitcoin ETFs have done for the price of BTC, sending it skyrocketing in just a matter of weeks. If the Ethereum ETFs come to pass, we can expect a huge rise in demand for ETH as well.

Solana Update

Solana (SOL) has been on a tear to kick off 2024, after getting annihilated in the bear market. One of the last crypto cycle’s darling assets, Solana is looking to be the comeback kid of 2024. SOL is up a remarkable 1,700% from its bear market low of about $8, and 70% on the year. Those numbers are ridiculous, but that is the potential of crypto altcoins.

Solana is now trading at just under $170, and I believe it still has the potential to grow significantly in this cycle. However, I’m wary of the short-term bullishness on this asset right now. SOL has been blazing hot, and it is about time it cools down. I certainly wouldn’t advise shorting any cryptocurrency with this much momentum, but this isn’t the time to buy SOL. We’ll be on the lookout for a pullback and the ensuing buying opportunity.

Conclusion

The cryptocurrency market remains as dynamic, volatile, and exciting as ever. Bitcoin has surged past its all-time high and established a new price frontier. Ethereum, while facing resistance at $4,000, shows promising signs of a potential breakout fueled by recent upgrades and ETF prospects. On the other hand, Solana has impressively recovered, but it’s important to exercise caution amid its rapid ascent.

As you navigate these market conditions, it’s essential to remain vigilant, capitalize on opportunities, and brace for inevitable corrections. To succeed in this dynamic space, you need to stay alert and plan strategically. Your careful observation and strategic approach will lead you to unimaginable success in this space.

This article previously appeared on Investing Daily.

Editor’s Note: We expect the cryptocurrency market to continue its winning ways in 2024, as the bull market in Bitcoin (BTC) and other crypto assets forges ahead.

Consider this fact: the “blue chip” of crypto, Bitcoin, gained 156% in 2023. This year, BTC and the broader crypto realm are building on those gains.

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