On Saturday, the cryptocurrency market showed a decline from its previous level of volatility, with Bitcoin and Ethereum prices falling 1.5%. Despite this, profit-taking in the crypto market remains high, with over $98 million liquidated in the last 24 hours. Analysts believe that the crypto market is currently in a lull ahead of the next bout of volatility.
Analyst Rekt Capital predicts that the next few weeks will be a pivotal time for the entire cryptocurrency market. If he continues the previous rally, he would signal the end of the bear market and the beginning of a multi-week consolidation phase.
However, if there is a significant drop below $18k, a downtrend could be indicated by a death cross between the 50 and 200 WMA.
A similar narrative has been shared by on-chain analytics firm Santiment, which cited a significant increase in altcoin whale transactions.
According to Santiment, Ethereum traders are less convinced that the bullish scenario will persist in the coming weeks. As such, there has been a significant increase in profit taking for Ethereum.
DonAlt's analysis
According to popular pseudonymous cryptocurrency trader DonAlt in a recent YouTube video, the cryptocurrency market has more upside in the coming months. However, the analyst warned that if Bitcoin closes February below $20,700, the bullish thesis will be invalidated.
“You have many advantages. I think the monthly bonus is basically $34,000 if you don't want to be too greedy”, DonAlts noted.
The analyst shared a similar thought on Ethereum, which hit $17,000 for the first time in months. As such, the analyst believes that Ethereum will reach $2.5k if the bullish thesis is not invalidated in the coming weeks.
With conflicting opinions from different experts, the future of the cryptocurrency market remains uncertain. Some predict a continuation of the bull market, while others see the possibility of a downtrend. With so much at stake, it's important to stay informed and make informed decisions.
