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Boosted by the current momentum in the artificial intelligence industry, tokens related to AI continue to show strong growth, sparking increased interest and activity among investors in related digital assets.
Indeed, traditional stocks associated with AI technology, such as NVIDIA, saw an uptick following the release of a significant profit report this week, with NASDAQ's NVDA, AMD, and MSFT all showing green this week. NVIDIA dubbed it the "tipping point" for AI.
Current status of Bitcoin
Bitcoin opened at $51,252 but dipped slightly to around $51,134, showing a mere 1% decrease over the past 24 hours. As previously reported by Decrypt, this trend highlights a period of trading sideways since February 15.
Cryptocurrency is currently positioned below the EMA10 threshold (the average price over the past 10 days), raising concerns about a strong pullback. Closing below this critical threshold for the day may indicate that bearish forces are gaining a foothold in the market.
Some market indicators suggest that a correction may be underway.
RSI, a measure of bullish versus bearish strength in the market, previously stood at an unusually high 80 points (indicating that 8 out of 10 traders were buying), but has now dropped to 66 points. While still relatively high, this decline suggests a shift in market dynamics towards a more balanced direction, indicating less fervor for BTC among traders compared to a few days ago.
The convergence of Bitcoin's EMA10 and EMA55 indicates that the gap between short-term and long-term buying performance is narrowing. This trend suggests a cooling-off period in the market, with recent buyers (those who bought BTC in the past 10 days) seeing different returns compared to buyers who entered the market earlier (those who bought BTC in the past 55 days). This also explains the decline in RSI.
If this correction continues and EMA55 crosses below EMA10, it could signify a bearish trend, leaving new buyers at a loss.
The current market is weighing the potential impact of the recent spot ETF approval and the upcoming Bitcoin halving. Historically, halving has influenced the value of Bitcoin, triggering a bull market every four years and potentially playing a significant role in shaping future market trends.
Market Dynamics of Ethereum
Ethereum opened the day at $2,970 but experienced a 1.4% decline, with its price adjusting to $2,947 at the time of this report's release. This trend reflects a larger intraday decline compared to Bitcoin.
While there was a stronger bullish trend earlier, Ethereum has not maintained its momentum this week. The appearance of a Doji candle during yesterday's trading period suggests a potential shift in market dynamics.
A Doji descriptor is used when the candlestick is flat and has no body—meaning the price did not move during the trading period. Yesterday, ETH opened at $2,967 and closed at $2,968, indicating indecision among traders.
This pattern suggests a balance between buyers and sellers, with neither making significant progress, indicating a potential weakening of Ethereum's dominant bullish trend.
Nevertheless, Ethereum's performance over the week remains positive, with a 6% increase over the past seven days. However, this growth is relatively modest compared to the substantial increases in previous weeks. Last week, it surged by 14.89%.
The observed slowdown in Ethereum's value growth suggests the possibility of a minor adjustment. These adjustments may be influenced by trends in the Bitcoin market, as altcoins often mimic the flagship cryptocurrency.
For long-term holders of Ethereum, the current market conditions still present optimistic prospects. While short-term corrections are possible, the overall trend supports holding onto coins temporarily. |
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Post time 7-3-2024 07:18:08