Hey everyone, welcome to Crypto Investing Daily. I’m your host, Alex Benfield. Let’s dive into what’s happening in the crypto markets as prices have been moving and dropping. Feel free to either read along in the article below or watch the full video.

Market Overview

We’re starting to lose some of the support levels that have held since the May 1st low across various altcoins. While our market leaders are still outperforming and maintaining a general uptrend, they are beginning to lose momentum as we head into the summer lull. If you were expecting a continuation of the bull market this summer, it’s not what you’re going to see. We’re entering a neutral period, losing upward trends and bull market uptrend lines on many charts, which is typical during a multiple-month-long neutral consolidation period. I’ve been predicting this since May for most cryptocurrencies, and I still expect a few more months of neutral market action.

Bitcoin

Looking at Bitcoin (BTC), we’ve seen a clear uptrend since early this year. From the January low to the May 1st low, Bitcoin maintained an upward trajectory. However, if we look at the mid-March high of around $73,000 and the May 20th high, Bitcoin has been in a downtrend since mid-March. Despite testing this downtrend, Bitcoin has failed to break through the resistance and recently broke below the uptrend line.

This was a significant bull flag and had Bitcoin broken to the upside, we could have seen a lot of bullish price action. Instead, Bitcoin broke below the uptrend line, transitioning the market from a bullish to a neutral trend. This means Bitcoin could bounce between the May 1st low and the mid-March high for a few months. The $58,000 level from May 1st is crucial; breaking below it could indicate a bearish trend, invalidating the current neutral thesis.

Ethereum

Ethereum (ETH) has held up well recently, better than many expected. After the Ethereum ETF approval in May by the SEC, Ethereum spiked 20% overnight, reaching around $3,800. Since then, it has fluctuated between $3,400 and $3,500, fighting to maintain the 100-day moving average. While Ethereum hasn’t lost upward momentum entirely, it’s on iffy ground. Given the overall market state, short-term prospects for Ethereum aren’t great, but a prolonged period of neutrality is expected.

Altcoins

Solana has struggled to gain upward momentum since the mid-March highs. Despite a brief run in May, it has been declining steadily. Solana remains above the May 1st low but is approaching it. Of the cryptocurrencies discussed, Solana looks the worst, lacking momentum and appearing very neutral.

Render (RNDR), an AI superstar and deep learning protocol, saw impressive gains from late 2023 through March 2024, reaching over $13. Since then, it has faced a downturn, dropping from $11 to $7.15 recently. Render and many AI altcoins seem to be in a downtrend, potentially entering an oversold phase. I anticipate altcoin prices will bottom out in June, presenting a buying opportunity.

Conclusion

The market is panicking, but that doesn’t mean you should too. This is a time of opportunity for seasoned, disciplined investors. While I don’t recommend catching falling knives, it’s crucial to watch for bottoming out and support levels in altcoins. As we transition from summer to fall, I expect the next leg of the bull market to kick off. By patiently loading up on discounted altcoins now, we could see significant gains by the end of 2024.

Keep a positive mindset and remember that opportunities often arise during times of maximum pain for most investors. Stay patient, and look out for upcoming opportunities in the next few days and weeks.

That’s all for today. Thanks for tuning in, and I’ll see you next time.

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This article previously appeared on Investing Daily.