Bitcoin Surges to $31,000, Crypto Market Cap Hits $1.19 Trillion
Bitcoin’s Rise and Crypto Market Cap
Bitcoin (BTC) recently reached a multi-month high of $31,000, marking its fourth visit to this price level in 2023. This surge propelled the total crypto market cap to its highest level since mid-August 2023, reaching a staggering $1.19 trillion. The bullish weekly close not only wiped out two months of losses but also boosted Bitcoin’s dominance to over 52%, a level not seen since April 2021. MicroStrategy’s $4.6 billion Bitcoin investment also returned to profitability following an 11% weekly gain.
Altcoins Record Gains
While Bitcoin’s 2% daily gain overshadowed most altcoins after the FTX collapse/bottom at 15k, several altcoins experienced significant gains. Chainlink’s LINK led the way with a 17% increase, breaking through the $8 resistance level and reaching $10.74 post-Terra/Luna collapse. Additionally, AAVE returned to 2023 resistance levels.
Bitcoin Hits Highest Level Since July
Bitcoin hit its highest level since July, reaching $30,369, which marks its fourth-largest weekly gain in 2021. However, analysts warn of potential bearish shifts despite its current trading value of $29,950. A weekly close above $31k could indicate bullish dominance over volatility.
Potential Bearish Shifts
Crypto analyst Ali cautions about a head-and-shoulders pattern on Bitcoin’s daily chart, an overextended outlook due to the TD Sequential indicator showing a green 9 candlestick, and an RSI of 74.21, which has triggered sharp corrections since March. While positive ETF news could catalyze a run to $40k, the absence of this could test the resistance zone and lead to a retest of support at $28,492 or even a bearish target of $25k. To avoid a price correction, a daily candlestick close above $31,560 would be necessary.
This article provides insights into Bitcoin’s recent surge, altcoin gains, and potential bearish shifts. The cryptocurrency market continues to captivate investors, with Bitcoin leading the way. Stay informed and navigate these exciting times in the crypto world.
