Crypto Price Analysis: The cryptocurrency market experienced a recent downturn following the release of inflation data that surpassed expectations, heightening concerns among investors about the future of the global economy. According to CNBC, the core personal consumption expenditures (PCE) price index, which excludes food and energy, rose by 2.8% in March on a year-over-year basis, consistent with February’s figures but slightly above projections.
This recent report is part of a series of unfavorable inflation updates, leading to speculation that the Federal Reserve might keep interest rates steady.
Thus, the BTC price trading sluggish on the weekend is bolstering sideways action for the majority of major coins reflecting no major initiation from buyers or sellers. However, the market participants perceive the current consolidation as an opportunity for digital coins to stabilize before the anticipated post-halving rally.
Also Read: Crypto Price Prediction: Key Altcoins to Watch as Bitcoin Heading to $60K
1)Bitcoin (BTC)
Bitcoin, the original cryptocurrency, stands out primarily for its pioneering blockchain technology, which enables decentralized and secure financial transactions without the need for a central authority.
Bitcoin witnessed notable selling pressure this week, resulting in a price drop from $67000 to $63352 to record a 5% drop. The leading cryptocurrency shows a market cap of $1.25 Trillion, while the 24-hour trading volume stands at $18 Billion.
If the bearish momentum persists, the BTC price could plunge another 5.2% to hit the support trendline of the triangle pattern at $60000.
This technical setup has led to a consolidation trend for the past two months resonating within two converging trendlines. If the bottom support holds, the Bitcoin price could trigger a renewed recovery to target the overhead resistance at $71200.
2) Optimism (OP)
Optimism (OP) is a layer-2 scaling solution for Ethereum that aims to enhance the blockchain’s capacity and reduce transaction costs through optimistic rollups. This technology stands out by enabling faster and cheaper transactions while leveraging the security of the Ethereum mainnet.
Over the past seven weeks, the OP price witnessed a steady correction under the influence of a downsloping trendline. The bearish downturn tumbled the altcoin price from $4.85 to $1.8 registering a 63% loss.
However, the altcoin price reverted to $2.64 amid the post-halving consolidation. The Optimism coin currently shows a market cap of $2.7 Billion, and the trading volume surged to $427.2 Billion since yesterday.
The recent upswing breaks above the aforementioned trendline signaling, the end of the prior correction trend. The post-breakout rally could surge the coin price to $4.
3) Shiba Inu (SHIB)
Shiba Inu (SHIB) is a meme coin that originated as a decentralized, community-driven cryptocurrency inspired by Dogecoin. For over a week, the SHIB has been trading sideways resonating within two horizontal levels of $0.000028 and $0.000023.
The daily chart projecting short bodies and long wicks indicates no dominance of buyers or sellers. By press time, the Shiba Inu coin holds a market cap of $14.4 Billion, and a trading volume of $361.2 Million.
If the SHIB price finds suitable support at $0.000023, the buyers will obtain the first higher low— projecting an early sign of renewed recovery. The potential bullish swing should face overhead supply at the $0.000028 and $0.00002385 mark.
Takeaway
The cryptocurrency market continues to witness post-halving consolidation evidenced by the notable price in Bitcoin without a particular direction. The altcoin market is also following the same trend allowing sidelined buyers to find pullback opportunities as the broader trend remains bullish.
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