In what seems like a flash, Bitcoin’s price hit and exceeded $60,000 this past week, reaching this psychologically important level for the first time since November 2021. This milestone comes after Bitcoin slid from its November 2021 peak of around $69,000, more than 2 years ago. The move caught many by surprise, as bears were calling for a pull-back to the $48K level – but in the end, short sellers were crushed by a swift move to the upside as $BTC ended the month with its highest ever monthly candle, a so-called "god candle" of nearly $20,000.
Over the past week alone, Bitcoin’s price has rallied over 20% percent, and is currently trading just below $63K. When contrasted to 12 months ago when Bitcoin traded under $22,000, this recent resurgence seems to indicate a fresh bullish momentum is gathering pace. Given the combination of Bitcoin’s upward price trajectory, the regulatory boost from recent Bitcoin ETF approvals earlier this year, and the upcoming halving in April, it appears we are at the start of a fresh crypto bull market cycle. So, despite the violent moves to the upside, there is still plenty of room for $BTC to move higher.
As trader and analyst Jacob Canfield told his 108,000 X followers:
“There are 1200-1500 aggregate Bitcoin orders across exchanges at $50,000 in terms of limit sells. Beyond that, it is thin air. I have not seen orderbooks this empty for a while. $50k is the final dungeon boss before a god candle to the upside.”
In the end, Canfield's prediction was spot on, as the god candle did indeed appear shortly after $BTC blew past the $50K level.
Similarly, popular analyst Michaël van de Poppe told his 700,000 followers:
“$50,000 per Bitcoin. The first time the market has reached this price since December ’21. In between: Luna crashed. FTX went bankrupt. Celsius & Blockfi collapsed. Bitcoin and crypto was called dead. We’ve made it. Bitcoin is here to stay. The future is great.”
Van de Poppe highlights how Bitcoin has weathered severe crypto market turmoil over the past year, including major collapses like Luna and FTX. Despite many pundits claiming cryptocurrencies were dead during this “crypto winter,” Bitcoin has regained strength. For Van de Poppe, this resurgence confirms Bitcoin’s staying power for the long run.
Words of Caution
However, some traders are advising caution at these lofty price levels. As analyst Ali Martinez tweeted to his followers:
“Bitcoin has shown a pattern of entering a brief correction phase whenever the 30-day Market Value to Realized Value (MNRV) ratio exceeds 11.50% over the past two years. The MVRV ratio recently crossed this threshold again, serving as a cautionary signal for $BTC traders!”
The MVRV ratio compares Bitcoin’s market capitalization to its realized capitalization, which measures the average price that existing Bitcoin holders paid for their coins. High MVRV ratios indicate holders are currently sitting on large profits, which could lead to increased selling pressure. Ali notes historical precedent for Bitcoin seeing pullbacks when this profitability metric gets excessive.
In addition to sentiment indicators, Bitcoin’s technicals also show stretched conditions. Bitcoin’s daily Relative Strength Index (RSI), a momentum indicator, now hovers around 70. Generally, RSI readings above 70 imply an asset is overextended and could see a correction.
The Moving Average Convergence Divergence (MACD) line is also above the MACD signal line, which suggests potential exhaustion of upward momentum.
Galaxy Fox – A Promising New Meme Coin
As Bitcoin continues its rampage, another nascent cryptocurrency project known as Galaxy Fox has sailed past $3.34 million in its ongoing presale. Galaxy Fox has already allocated 70% of tokens to presale participants, emphasizing a fair and distributed ownership composition.
The $GFOX tokenomics integrate a deflationary token burn mechanism. This implies that as the Galaxy Fox ecosystem grows in activity and transactions, the protocol will periodically reduce supply by burning tokens. With supply unable to keep pace with growing demand, basic economics points to strong appreciation potential for the circulating token supply.
As of now, stage 8 is already 93% sold out according to the Galaxy Fox website.
Play-To-Earn GameFi Integration
Beyond a meme coin, Galaxy Fox incorporates innovative Web3 gaming elements. The project will launch an endless runner video game, allowing players to be rewarded in $GFOX tokens depending on their in-game performance. There will also be exclusive NFT assets integrated into the gameplay – limited to just 3,000 total NFTs – which unlock special abilities to give players an edge. This makes progressing to the top of leaderboards more exciting and rewarding.
Moreover, Galaxy Fox will distribute prize pool rewards to the top 20% of performers each gaming season. Half of all in-game sales from items will contribute to this prize pool, giving an added incentive for top players to keep competing.
Staking & Tokenomics
One of the most compelling aspects of Galaxy Fox is the ability to stake $GFOX tokens in the Stargate module and earn passive yields. Staking rewards come from 2% of all transactions across the ecosystem being distributed as dividends. For investors focused on passive income streams, Galaxy Fox offers strong residual rewards just for holding the token.
Much like Floki Inu for example, Galaxy Fox applies taxes on transactions, with portions used to fund staking rewards in a sustainable fashion. Taxes also feed into the platform Treasury, which directs capital toward marketing and community initiatives. Galaxy Fox aims to drive mainstream adoption through consistent brand awareness pushes. The Treasury will also benefit from official merchandise sales.
Given the current explosive stage of growth, Galaxy Fox presents an exciting opportunity for investors looking to diversify into promising new DeFi protocols and meme coins. The multi-faceted token and gameplay model create appealing incentives for long-term holdings.
With crypto leaders like Bitcoin blazing the trail higher once more, we could see a resurgence in crypto experimentation. This publicly available presale for Galaxy Fox may be the optimal timing to participate.
Learn more about Galaxy Fox ($GFOX) here:
Visit Galaxy Fox Presale | Join The Telegram Group | Follow Galaxy Fox on Twitter
This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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