After a tumultuous start to May, the crypto market is showing signs of recovery, with Bitcoin and major altcoins like Ethereum and Solana making modest gains. Bitcoin, in particular, has clawed back some losses to hover around $58,818. Adding to the market's optimism, MicroStrategy has announced a groundbreaking decentralized identity protocol on the Bitcoin blockchain. Dubbed MicroStrategy Orange, this open-source protocol aims to revolutionize online identity management. As the crypto market rebounds, could this new development be the catalyst for Bitcoin to reclaim the $60,000 mark and beyond? Let's delve into the top three price predictions for BTC, ETH, and SOL.

MicroStrategy Announces Decentralized Bitcoin Blockchain Identity Protocol

MicroStrategy, the second-largest holder of the world’s leading digital asset, BTC, has announced plans to build a decentralized identity protocol to run on the Bitcoin blockchain. According to the company’s Chairman, Michael Saylor, the product called MicroStrategy Orange will mirror a similar technique to Ordinals referred to as the Bitcoin Inscription DID method.

Saylor unveiled the plan during the Bitcoin For Corporations conference conducted on May 1. MicroStrategy Orange stands out due to its open-source nature. On top of that, the technique does not rely on sidechains and can process at least 10,000 DIDs. The firm’s GitHub contains more information. The protocol’s overall aim is to make DIDs easily adoptable for institutions and individuals. It will be a method of managing online identities not only securely but also pseudonymously.

Top 3 Price Predictions: Will Bitcoin Reclaim $60,000 This Week?

Bitcoin price flash drop tested support at $56,500, ending several months of a winning streak mainly bolstered by the adoption of spot ETFs in the US. The correction occurred approximately two weeks after Bitcoin halving on April 20 and may have been accentuated by internal and external forces.

Internally, the market likely reacted to the jailing of the founder of Binance, Changpeng Zhao, and the dovish Federal Reserve’s stance on inflation and interest rate cuts. Inflation remains sticky in the US, making the Fed’s goal of 2% inflation seem unattainable in the short term. This means that expectations of early interest rate cuts in 2024 are being shaken vigorously.

Risk asset classes like Bitcoin and crypto will likely remain suppressed, with investors preferring stable investments like bonds. This cuts the flow of money into Bitcoin and crypto, thus hindering price increments. The Federal Reserve left interest rates unchanged at the end of the FOMC meeting on Wednesday.

Despite the dovish outlook from the regulator, Bitcoin has shown strength on Thursday, rising by 1.3% to $58,818, according to data by CoinGape and CoinGecko. Meanwhile, the Relative Strength Index (RSI) on the four-hour chart suggests that buyers have the upper hand after recovering from oversold conditions to 42. Its continued movement toward the overbought area, above 70, could call more traders to buy BTC aiming for gains above $60,000.

Key Factors to Watch for Bitcoin

Some key factors to look for are whether Bitcoin price will close the day above recently reclaimed $58,000 support and move to reclaim the next anchor at the 20-day EMA. Note that breaking above the red band or $62,000 resistance could mark the beginning of another bigger bullish move to $70,000. On the other hand, losing $56,000 as support may pave the way to more losses targeting $52,000 and $50,000 support areas.

Ethereum and Solana Price Update

Two of the leading altcoins reveal that investor attention is directly on Bitcoin and across other digital asset classes. Ethereum price is on the cusp of retaking support at $3,000. It has increased its value by 2.6% in 24 hours to hover at $2,990 during US business hours.

Solana is among the tokens boasting double-digit gains up to 11%, and trading at $137. Most altcoins in the top 100 show signs of continuing the bullish trend to the end of the week.

Ethereum (ETH) Price Prediction

Ethereum has been showing resilience, with its price hovering around the $2,990 mark. The recent gains can be attributed to the overall positive sentiment in the crypto market and the upcoming Ethereum 2.0 upgrades, which promise to enhance the network's scalability and security.

The Relative Strength Index (RSI) for Ethereum is currently at 55, indicating a neutral market sentiment. However, if the RSI moves above 70, it could signal a bullish trend, potentially pushing ETH prices above the $3,000 resistance level. Breaking this resistance could pave the way for Ethereum to target the $3,500 and $4,000 levels in the coming weeks.

Solana (SOL) Price Prediction

Solana has been one of the standout performers, with its price surging by 11% to trade at $137. The bullish momentum can be attributed to several factors, including increased adoption of Solana's blockchain for decentralized applications (dApps) and non-fungible tokens (NFTs).

The RSI for Solana is currently at 60, indicating a bullish sentiment. If the RSI continues to rise, it could attract more buyers, pushing SOL prices towards the $150 resistance level. Breaking this level could see Solana targeting the $175 and $200 levels in the near term.

Conclusion

The crypto market is showing signs of recovery, with Bitcoin, Ethereum, and Solana making notable gains. MicroStrategy's announcement of a decentralized identity protocol on the Bitcoin blockchain has added to the market's optimism. As Bitcoin aims to reclaim the $60,000 mark, Ethereum and Solana are also poised for potential bullish moves. Investors should keep an eye on key support and resistance levels, as well as market sentiment indicators like the RSI, to make informed trading decisions.

The post Top 3 Price Predictions as MicroStrategy’s Bitcoin Identity Protocol Launches: BTC, ETH, SOL Prices to Rally? appeared first on CoinGape.