Decentral Block Post

Bitcoin (BTC) is on target to end the week with gains of about 6%, indicating continued demand from the bulls. MicroStrategy co-founder Michael Saylor said during a speech at the 2023 Australia Crypto Convention on Nov. 10 that Bitcoin’s demand on a monthly basis could surge between two to 10 times by the end of 2024. Additionally, the halving will reduce the supply by half. Saylor expects both these events will cause the price “to adjust up.” 

With almost a general consensus that Bitcoin’s price will move higher in 2024, analysts are busy projecting how high the rally could reach. Using its Terminal Price on-chain indicator, Look Into Bitcoin creator Philip Swift said that Bitcoin could hit at least $110,000 in its next bull cycle.

While Bitcoin continues to hog the limelight, several major altcoins have been charging higher. The broad-based cryptocurrency rally increases hopes that an altcoin season may be around the corner.

If the bullish sentiment sustains, altcoins may witness a rotation, wherein the high flyers face some profit booking, and the laggards start moving higher. Let’s look at the charts of the top-5 cryptocurrencies that may outperform in the near term.

Bitcoin price analysis

Bitcoin has been holding above the ascending channel pattern for the past three days, indicating that the bulls are defending the breakout level.

The price of Solana (SOL) has soared 40% this week to establish a new 2023 high at around $58. 

That is Solana's best weekly performance since January 2023. Many factors have contributed to the gains, including a general cryptocurrency market uptrend led by Bitcoin ETF euphoria and growing appetite for risk overall.

FTX-dump fears fails to shake Solana bulls

Solana's rise coincides with the daily selling of 250,000-750,000 SOL tokens by FTX bankruptcy estate in the last two weeks.

The Delaware Bankruptcy Court approved the sale of 55.75 million SOL tokens in September 2023. The limited impact of these sales, due to some tokens being either vested or locked, and a weekly sale limit of $100 million, has transformed initial fears into investor enthusiasm.

For instance, Solana-focused funds, one of the barometers to gauge institutional flows in the SOL market, witnessed inflows worth $10.80 million in the week ending Nov. 3, according to CoinShares.

Solana's native token (SOL) experienced an impressive 22% surge on Nov. 10, breaking past the $54 mark for the first time since May 2022. Notably, this surge occurred amid the continuous selling of SOL tokens by FTX's bankruptcy estate. The Delaware Bankruptcy Court approved the sale of the failed exchange FTX assets, which included 55.75 million SOL in September 2023.

Investor enthusiasm for SOL's price increase may be attributed to the fact that some of the tokens from the bankruptcy proceedings are either vested or locked. Furthermore, there's a weekly sale limit of $100 million imposed as part of the FTX liquidation plan. In essence, the initial fear of asset liquidation has transformed into hope as investors realize the limited impact of the sales.

As trader and independent analyst 'Bluntz' aptly described the situation, SOL's resilience during the FTX bankruptcy token dump is impressive. The post on X, (formerly Twitter) adds a bullish case for SOL, stating,

"Once this seller is gone, I can only imagine how hard it's gonna pump."

SOL price has been fueled by solid demand for leverage longs

SOL's substantial 39% weekly gains have pushed its futures open interest to $745 million, the highest level since November 2021 when SOL achieved its all-time high of $260. Still, in futures markets, leverage longs and shorts are constantly matched, so it's crucial to examine SOL's funding rate for a more nuanced perspective.