Bitcoin prices and most crypto coins crashed this week as industry concerns remained. Bitcoin price crash coins may bounce back because of the ongoing US dollar index crash. There are some odds that they will do well because of the upcoming lunar eclipse. Crypto coins remained under pressure during the weekend even after Donald Trump announced his plans for a Strategic Bitcoin Reserve (SBR) and held the first crypto summit in Washington. Bitcoin’s price has crashed below $83,000, while the valuation of most coins has dropped to $2.7 trillion.
Bitcoin price crash prices face a perilous recovery path now that the fear and greed index has dropped to the fear zone. However, three potential catalysts could move prices higher in the coming days. The US dollar index (DXY) has crashed from $110 earlier this month to $103.5 today, signaling that the Fed may start to cut interest rates earlier. Second, the Lunar Eclipse will happen this week, which may lead to some changes in the market.
One crypto analyst believes that the ongoing crypto crash will happen after this lunar eclipse ends, citing the Saturn conjunct. Third, there are signs that some cryptocurrencies have become highly oversold, meaning that they may rebound soon.
Bitcoin
Bitcoin price crash. Some of the best cryptocurrencies to buy as the US dollar index crashes ahead of the upcoming Lunar Eclipse are Polkadot (DOT), Litecoin (LTC), and Bitcoin (BTC). Polkadot price has remained in a three-year consolidation phase, but technicals suggest that it may be about to bounce back. It has remained above the crucial support at $3.74, where it failed to move below since 2023. The coin has formed a quadruple bottom at that level.
There are signs that it has moved into the accumulation phase of the Wyckoff Theory, which is then followed by the markup. Markup is characterized by the fear of missing out and parabolic moves.
Polkadot
Polkadot has bullish fundamental catalysts. It is a blue-chip Made in the USA crypto coin that has higher chances of being included in the US government digital stockpile. Further, the Securities and Exchange Commission (SEC) will likely approve the applied DOT ETFs. Further, it is going through the Polkadot 2.0 upgrade, which will have numerous changes in the ecosystem. The most significant one will be JAM, which will enable developers to build applications without going through the parachain auctions.
Litecoin
Litecoin is another crypto coin to buy as the US dollar index crashes ahead of the Lunar Eclipse. The primary catalyst is that the SEC is in the final stages of approving a spot LTC ETF, which will likely lead to more demand. The SEC has no reason to disapprove of a Litecoin ETF because of its similarity with Bitcoin. Litecoin is largely similar to Bitcoin since it emerged as a hard fork of the coin. The agency does not see Litecoin as a security. The Litecoin price has also formed an ascending triangle pattern on the weekly chart that may lead to a strong bullish breakout that will be confirmed if the coin rises above the resistance at $140.
Bitcoin Price Outlook
Bitcoin is another crypto to buy as the US dollar index crashes ahead of the Lunar Eclipse. The main reason for this bullish outlook is that the coin is about to crash to the crucial support level at $73,685. This is a vital level since it was the highest in March last year and is the target of the double-top pattern. The double-top has a depth of about 17.5%, and measuring that distance from the neckline brings the target to $73,685.
A move to that level will point to a further upside in the Bitcoin price, with the next level to watch being the year-to-date high of $109,200. Standard Chartered analysts anticipate that the Bitcoin price may surge to $500,000 in the long term.
Final thoughts
The piece presents a scenario of a pressured market that may rebound if the conditions are right. The depreciating US dollar and possible lunar eclipse might be the perfect setup for a comeback of specific cryptocurrencies. Yet, one should remember that crypto markets are extremely speculative and volatile, and although bullish triggers are at work, the environment is still risky. Investors need to be cautious and watch these events closely.
