The Bitcoin price has risen by 2.5% in the past 24 hours, reaching $27,896 and pushing the cryptocurrency market up by 2%. This recent increase in value suggests more growth may be on the horizon, especially given that Bitcoin has risen above its 21 weekly exponential moving average (EMA). As lower cap altcoins and meme tokens typically follow Bitcoin’s lead, this upward trend indicates potential rallies for these currencies as well.
It is worth noting that over the weekend, a deal was reached between Republican lawmakers and the White House regarding the US’ debt ceiling. With this agreement in place, it is anticipated that more gains will follow when the US Congress ratifies the deal.
Bitcoin’s chart displays a promising breakout that could continue in the near future. Its relative strength index (RSI) reached 80 over the weekend, and though it has decreased slightly since, it remains close to 70, raising the possibility of more growth in the coming days. Similarly, Bitcoin’s 30-day moving average has risen significantly above its 200-day average, indicating that momentum is currently heading in a positive direction. It is expected that Bitcoin’s price will climb to around $28,000 in the next few days.
The potential for continued recovery in the global economy is also evident in recent news, including the Eurozone avoiding a recession in Q1 2023 and the International Monetary Fund (IMF) predicting that the UK will avoid a recession this year. In addition, the US economy has been adding jobs and exceeding earnings expectations, and Hong Kong is set to introduce new regulations from June 1st that will permit retail investment in cryptocurrencies.
With increasing confidence in the worldwide economy, it’s likely that there will be a growing appetite for risk-on assets such as cryptocurrencies. In the current market, the best-performing coins are newer altcoins, such as Injective (INJ), Lido (LDO), Quant (QNT), and Sui (SUI), which have risen by 14%, 6.1%, 6%, and 5% in the past 24 hours, respectively.
As Bitcoin continues to gain momentum, it’s highly likely that altcoins will similarly rally, perhaps even more so than Bitcoin itself. This includes meme tokens, which have experienced strong growth in the past month. For example, Pepe (PEPE) has increased by around 350% in the last 30 days, while Wojak (WOJAK) is up by 9% today and 100% over the past month.
However, it’s important to remember that meme tokens can fall out of favor as quickly as they gain popularity, which means that the likes of PEPE, WOJAK, and others may soon be overtaken by newer meme coins, such as Sponge (SPONGE) and Wall Street Memes (WSM). Despite their volatile nature, the current market trends suggest positive growth in the cryptocurrency realm.
Source: Cryptonews
