Major cryptocurrencies are rising alongside gains in U.S. stocks as oil prices shed the war premium built up in recent weeks. But broader market participation remains elusive and limited to just a few pieces.
Bitcoin and ether (ETH) are up 5% and 9%, respectively, over the past 24 hours, as digital asset treasuries like Strategy (MSTR) and Bitmine (BMNR) support strong demand and traders seek bullish exposure via futures. More importantly, perpetual funding rates are positive, but remain below 10% for both assets, indicating healthy demand for bullish bets without signs of overheating – a Goldilocks scenario.
Solana’s SOL has bounced back into the mid-80s, but it’s already been here several times in recent weeks and still doesn’t offer directional clarity. A similar conclusion can be drawn for the payments-focused token XRP.
Analysts are optimistic, but want to see BTC gain a foothold above $74,000-$75,000.
“A victory for the bulls in this battle will open an easier path to the $87,000-$90,000 range, where the 200-day moving average and November-January support lie. Optimism in global markets increases the chances of reaching these highs in the coming days, but before breaking above $90,000, Bitcoin may require a long period of consolidation and cooling,” said Alex Kuptsikevich, market analyst in chief at FxPro, in an email.
The digital asset services wing of Marex Group stressed that bitcoin needs to hold above $74,000 without the market being overheated by excessive leverage.
“If Bitcoin can consolidate above 73,000 to 74,000 without funding overheating, this can expand. If it returns quickly, this confirms that the move was primarily a headline and squeeze, and not a real shift in demand,” crypto trading analysts at Marex said.
Some altcoins, such as ZEC, HYPE, and AAVE, and memecoins, such as PEPE, continue to rally. HYPE’s parent platform, Hyperliquid, is increasingly capturing share of the perpetual futures market from centralized exchanges (CEX). Data shared by Hyperliquid News shows that the decentralized platform’s share of open interest compared to CEXs has reached a new all-time high of 6.9%.
However, the broader market has yet to fully participate in the Bitcoin rally. This is evident from traditional metrics measuring market breadth based on price performance filters.
For example, the price of BTC is now significantly above its 50-day moving average – a bullish signal, according to analysts. However, according to data source TradingView, only 51 of the top 100 coins (including BTC) exhibit the same behavior.
In traditional markets, the dollar index continued to fall, hitting a five-week low as war fears eased. The sustained decline supports the bullish thesis for risk assets. Stay vigilant!
Read more: For analysis of current altcoin and derivatives activity, see Crypto Markets Today. For a full list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
What is the trend
Signal of the day
The chart displays daily Bitcoin price movements in candlestick form, overlaid on the Ichimoku Cloud indicator.
Prices rose more than 5% in 24 hours, surpassing the trend line drawn from the October high. This descending line represented the bear market characterized by prices forming lower and lower highs. The break therefore indicates a significant recovery in demand and suggests further gains to come.
The case for a rally to $80,000 and above would strengthen further if prices rose above the Ichimoku cloud, a technical indicator developed in the late 1930s by Japanese journalist Goichi Hosoda and popularized in the 1960s. The cloud helps visualize the direction and momentum of the trend, with prices trading above it generally signaling a stronger bullish structure.
