Bitcoin Price Outlook: Will GameStop stock resurgence have downstream effect on BTC and alts?


  • Bitcoin price defends support due to ascending trendline as BTC bulls hold above $61,000.
  • GameStop stock shapes and accelerates markets for two days after Roaring Kitty’s surprise resurfacing.
  •  GME could generate renewed appetite for risk/hype among speculators seeking opportunities, potentially causing downstream effects on BTC and alts.

Bitcoin (BTC) price continues to glide along an ascending trendline on the four-hour time frame. Meanwhile, the GameStop saga that has resurfaced after three years distracts the market, with speculation that it could inspire risk appetite among traders and investors. 

Also Read: GameStop shorts lose over $1 billion in mark-to-market losses on Monday amid meme-stocks demand

Daily digest market movers: Will GameStop stock resurgence have downstream effect on Bitcoin and alts?

Bitcoin price action remains inspiring this week, with analysts anticipating a bullish turnaround across the market. Meanwhile, the markets are engorged on the GameStop stock narrative, following the resurfacing of Keith Gill, alias Roaring Kitty.

Speculation has it that the GameStock resurgence could generate a renewed appetite for risk as well as hype among traders and investors who are looking for opportunities. If it happens, @KevinSvenson_ on X says, “this will probably have a downstream effect, resulting in a surge across many high-risk speculative markets, including Bitcoin and altcoins.”

In hindsight, the last time GameStock’s GME stock rallied by over 100% in a day was in January 2021. When it happened, Bitcoin price was down 30% after recently breaking its previous cycle all-time high (ATH).

As it stands, Bitcoin price is down 25% in May 2024 after breaking its previous cycle ATH recorded in March. As if to repeat the 2021 scenario, GME is up by more than 100% in a day, blowing shorts out of the water.

If history rhymes, Bitcoin could rally over the coming months, potentially reaching $120,000 by August. Meanwhile, reports indicate that GameStock stock trading has been halted, with shorts down another $-1.36 billion in mark-to-market losses on Tuesday.

The halt comes amid heightened price volatility with AMC suffering a similar fate. To put it in perspective, GameStop GME surged 120% in the premarket to $67. Eric Balchunas has reported that GME traded $4 billion worth of volume in the first 30 minutes of trading, surpassing Tesla and Apple.

Cryptocurrency metrics FAQs

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.

Technical analysis: Bitcoin coils up for a bounce, but there is a catch

Bitcoin price is primed for a bounce as it defends against further downside, shown by the Relative Strength Index (RSI), which is deviating horizontally. If this momentum indicator defends against a lower high, Bitcoin price could bounce atop the ascending trendline, potentially recapturing the $63,354 threshold.

However, only a flip of the $65,500 blockade and a stable close above it on the four-hour time frame would signify a change in market structure. This could precipitate an extended move north with BTC likely to take back the $70,000 psychological level.

In a highly bullish case, Bitcoin price could extend its neck high enough to take back its all-time high at $73,777 before setting a new peak price.

BTC/USDT 4-hour chart

Conversely, if seller momentum increases and the ascending trendline fails to hold as a support floor, Bitcoin price could drop to the $60,630 buyer congestion level. Enhanced selling pressure could see Bitcoin price roll over to the $60,000 psychological level.

A decisive close of the RSI below the mean level of 50  and the Awesome Oscillator (AO) flashing red tilts the odds in favor of the downside. A lower low on the RSI, however, is likely to encourage more sell orders.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple stablecoin unlikely to invite legal trouble from SEC, says Ripple executive

Ripple stablecoin unlikely to invite legal trouble from SEC, says Ripple executive

Ripple, the native token of the XRP Ledger slipped under $0.60, a key psychological support for the altcoin. The two key market movers are the Securities & Exchange Commission’s lawsuit against Ripple and the upcoming stablecoin RealUSD (RLUSD).

More Ripple News

Binance burns over $950 million in BNB, will price cross $700?

Binance burns over $950 million in BNB, will price cross $700?

Binance Coin price is nearly unchanged in the past month. Data from TradingView shows BNB price is $585 at the time of writing. On-chain metrics support a thesis of gains in BNB, as social dominance and volume climbs this week.

More Binance News

Dogecoin price sets for a rally following retest of support level

Dogecoin price sets for a rally following retest of support level

Dogecoin price faces rejection at the 50% Fibonacci retracement. On-chain data shows that DOGE's development activity is growing, suggesting a bullish move ahead. A daily candlestick close below $0.1018 would invalidate the bullish move.

More Dogecoin News

Mt.Gox transfers $2.85 billion in Bitcoin, what to expect from BRC-20, cat-themed meme coins

Mt.Gox transfers $2.85 billion in Bitcoin, what to expect from BRC-20, cat-themed meme coins

Bitcoin worth $2.85 billion was transferred by Mt.Gox, crypto traders anticipate heightened selling pressure on BTC. Bitcoin-related assets like BRC-20 tokens and cat-themed meme coins typically rally or suffer correction in price alongside BTC. 

More Cryptocurrencies News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis

BTC

ETH

XRP