Bitcoin, Dogecoin, Ethereum Retrace On Profit-Taking By Retail Investors: Analyst Predicts Parabolic Rise For King Crypto Following Consolidation Phase

Leading cryptocurrencies dipped Sunday evening as profit-hungry traders locked in gains from last week's relief rally. 

CryptocurrencyGains +/-Price (Recorded 8:30 p.m. EDT)
Bitcoin BTC/USD-1.05%$66,231.95
Ethereum ETH/USD-1.79%$3,066.75
Dogecoin DOGE/USD-2.97%$0.1488

What Happened: Bitcoin, the largest digital asset on the planet, was hovering over the $66,000 mark, after soaring past $67,000 earlier in the day. The correction pushed the rest of the market to give up its previous week’s gains as well.

Bitcoin's Open Interest fell 1.13% in the last 24 hours to $32.73 billion at the time of publication. The biggest decline was seen on Bitget, while CME—the world's largest Bitcoin futures exchange—experienced a 0.65% drop.

Despite the correction, most traders were bullish on Bitcoin's prospects, as the number of long positions for the coin significantly exceeded shorts in the last 24 hours.

The Cryptocurrency Fear & Greed Index continued to signal "Greed," although the degree of greed subsided from last week's rally.

Top Gainer (24 Hour)

CryptocurrencyGains +/-Price (Recorded 8:30 p.m. EDT)
Bitcoin Cash (BCH)+1.66%$482.80
Arweave (AR)+1.06%$47.78
Chainlink (LINK)+0.49%$16.46

The global cryptocurrency market cap stands at $2.39 trillion, following a 1.59% decline in the last 24 hours.

Stock futures inched higher on Sunday, following the record-breaking rally of Dow Jones Industrial Average Friday. The Dow Jones Industrial Average Futures rose 0.1%, or 41 points, as of 8.30 p.m. EDT. Futures tied to the S&P 500 gained 0.14%, while Nasdaq 100 Futures added 0.17%.

The upcoming week is set to witness first-quarter earnings from top AI-based companies like NVIDIA Corp., with analysts predicting an overall positive for technology stocks. Key macroeconomic data like existing home sales and jobless claims data will also be on investors' radar.

See More: Best Cryptocurrency Scanners

Analyst Notes: On-chain analytics firm Santiment attributed the brake in the rally to the capitulation of small Bitcoin holders. The number of non-empty wallets fell to levels not seen in the last two months. 

However, the firm added, "Historically, small wallets dumping their coins to larger wallets is an encouraging and bullish sign for BTC."

Analyst Rekt Capital drew a historical equivalence with the last halving and predicted a consolidation phase for Bitcoin before it breaks into a parabolic rise. 

Cryptocurrency analyst Michaël van de Poppe forecasted a bullish pivot for altcoins, saying, "It’s very likely that Altcoins are continuing their upward grind from here and that we’ve finished the correction." 

Note that the crypto influencer recently dumped all of his Bitcoins in favor of altcoins.

Photo via Shutterstock

Read Next: Senate Votes To Overturn Controversial SEC Crypto Rule, But Will Biden Veto It?

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