news-image
Headlines

Why Ethereum and Solana Are Must-Buys in This Dip

Bitcoin and Ethereum have recently experienced significant price drops, causing widespread concern among investors. Bitcoin’s fall below $55K triggered major trading signals, breaking the short-term uptrend since last August. Historically, similar corrections have lasted over two months before a bull run resumes. 

VirtualBacon, a Crypto analyst points out that the recent market dip isn’t just about German selling of 27,000 Bitcoins —it’s also tangled up with wider issues like rate hikes, presidential election results, SEC decisions, and ETF inflows. Plus, external factors such as Mt. Gox’s potential sale of 142,000 Bitcoins are creating additional market pressures. While the drop might feel alarming, he advises against knee-jerk reactions.

Institutions are Buying the Dip

Despite the decline, the good news is that major institutions such as BlackRock and Fidelity are buying the dip, signaling strong institutional confidence. The recent correction began on July 4th and is likely to continue until September, aligning with historical mid-cycle corrections that last 60-70 days.  Moreover, Bitcoin’s price action often correlates with the NASDAQ and S&P 500, suggesting that as long as these indices rise, Bitcoin will likely follow.

Venturing into Altcoins

Expanding his horizons, VirtualBacon turns his attention to altcoins, looking for hidden gems amidst the chaos. He noted that even though several altcoins like Solana, Avalanche, and Polygon are expected to see a 10%-20% drawdown, strong assets like Ethereum and Solana remain worthwhile for accumulation. According to the analyst, both assets are meant to do well, with Ethereum benefiting from upcoming ETF launches and Solana showing resilience during recent market turbulence.

Top Buying Opportunities Across Sectors

However, investors are advised to focus on proven performers and consider promising sectors like AI, gaming, and meme coins. Due to the liquidity issue among many new tokens, the above sectors may outperform as older ones lose value.  The expert stated that portfolio adjustments should be made gradually over 2-3 months if considering meme coins or other altcoins.

The bull run will continue, If?

The bull run is expected to resume when Bitcoin breaks above the 21-weekly EMA and establishes a higher low. Patience and strategic accumulation of strong assets are recommended during this period. According to the analyst, the key price targets include Bitcoin at $50K, Ethereum between $2,200-$2,600, and Solana at $100-$110.

While the transfer of funds to exchanges suggests Germany may intend to liquidate, it doesn’t confirm that the assets have been sold. Additionally, FTX’s bankruptcy estate is set to distribute about $16 billion in cash to crypto investors around September or October. This distribution is expected to act as a positive catalyst for the market in the coming months.

By advocating for strategic moves, identifying key levels, and exploring opportunities across different sectors, he empowers investors to weather the storm and confidently seize emerging trends.

Related posts

Are US Crypto Regulations Suffocating The Industry? Binance’s CSO Sounds Alarm

EdaFace Admin

Gensler Teases Upcoming SEC Decision on Ethereum ETFs: Here’s What To Expect

EdaFace Admin

KEY3.id Launches Bored Ape Domain .bayc, The First Digital Identity Bound To Blue Chip NFTs

EdaFace Admin

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More