2023-07-03 00:07:47 ET
Cryptocurrencies outperformed key financial assets like stocks and commodities in the first half of the year. Bitcoin , the biggest crypto in the world, more than doubled from its lowest point in December. This rebound led to other major gains among other altcoins like Compound (COMP), The Graph (GRT), Litecoin (LTC), Filecoin (FIL), and Maker (MKR).
$31,480 is the price to watch
Cryptocurrencies had a strong performance in the first half of the year despite significant headwinds in the industry. The most important headwind was the recent lawsuits by the SEC against Coinbase and Binance.
These lawsuits made several allegations that could have a major implication on altcoins. For example, the allegation that most altcoins are securities could force most of these altcoins to be delisted by exchanges serving American customers.
At the same time, crypto exchanges could be forced to dramatically change their business models. The SEC alleged that these companies operated as broker-dealers, unregistered brokers, and clearing houses at the same time.
From a technical standpoint, Bitcoin price sits at an important level. As shown below, the coin is hovering near the highest level this year. It has formed two distinct patterns that have different outcomes. It has formed what looks like a double-top pattern. In price action analysis, this double-top pattern is usually a bearish sign.
At the same time, it has formed a small bullish pennant pattern, which is a bullish sign. Most importantly, it sits above the 50-day moving average.
Therefore, a move above the year-to-date high of $31,422 will validate the bullish pennant pattern and lead to more gains. If this happens in a high-volume environment, it will open the possibility of the coin jumping to $35,000.
Altcoins rally continuing
A strong Bitcoin comeback will have a major impact on altcoins. Indeed, some of the best-known altcoins are doing well this year.
Litecoin price jumped to the highest level since May last year. It has soared by more than 190% from its lowest point in 2022 as investors wait for the upcoming halving event. LTC has managed to cross the important resistance point at $105.9, validating the bullish view. Therefore, there is a likelihood that Litecoin prices will jump to $150 soon.
DeFi tokens have also done well this year. Investors believe that the crackdown of centralized exchanges could lead to more demand for DEX platforms that are hard to regulate. Compound’s COMP price has jumped to $66 (August 22nd high). The same is true for other DEX tokens like Maker (MKR) and Synthetix (SNX).
If Bitcoin crosses the year-to-date high, it could mean more gains for altcoins like The Graph (GRT), Bitcoin Cash (BCH), and Filecoin (FIL). Historically, these altcoins tend to do well when Bitcoin price is soaring.
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