Why is the Crypto Market Up Today?

The total crypto market cap (TOTAL) rose by $104 billion and Bitcoin (BTC) followed suit as it reclaimed $108,000 as support over the last 24 hours. As for the altcoins, Bonk (BONK) shot up by 21% to trade at a 3-week high.

In the news today:-

• A US bankruptcy court allowed Celsius’ lawsuit against Tether to proceed, claiming Tether violated a contract involving $4 billion in Bitcoin. The case’s outcome remains uncertain, as Celsius has already repaid most creditors, leaving unclear how the funds would be used if they win.
• The SEC approved Grayscale’s new five-asset basket ETF but issued a stay order, delaying its market launch indefinitely. Analysts offer theories for the delay, but until the SEC provides clarity, the situation remains uncertain.

The Crypto Market Rebounds

The total crypto market cap saw a significant rise, increasing by $104 billion in the last 24 hours. With the market cap now sitting at $3.31 trillion, it has secured this level as support, reflecting strong investor confidence and overall market stability. This upward movement indicates a bullish trend.

Looking ahead, the next key target for the crypto market cap is $3.43 trillion. Having already reached a 3-week high, this level is within reach if the positive momentum continues. Sustained bullish cues will be essential to push the market to this next resistance point and maintain the upward trajectory.

Total Crypto Market Cap Analysis. Source: TradingView

However, unexpected selling could disrupt the current bullish momentum. If market sentiment shifts, TOTAL could lose the $3.31 trillion support and fall to $3.26 trillion or even lower. A significant decline below this level would indicate a bearish shift in the market and could result in further losses.

Bitcoin Breaches Barrier

Bitcoin rebounded from nearly falling to $105,000 on Wednesday and is currently trading at $108,653. The altcoin is now aiming to secure $108,000 as support. Holding above this level is crucial for Bitcoin’s next move and will determine its path forward in the coming days.

For Bitcoin to continue its rise, it must successfully breach the $109,476 barrier. A break above this level could push BTC towards $110,000 and possibly higher. Sustained bullish momentum will be key in determining whether Bitcoin can break past this resistance and maintain upward momentum.

Bitcoin Price Analysis. Source: TradingView

Nevertheless, if selling pressure increases from investors, Bitcoin could lose the $108,000 support. In that case, BTC would likely test the $105,585 support again, which would signal a bearish reversal. Any significant drop below this support level would further strain Bitcoin’s price outlook.

Bonk Continues Recovery

BONK has emerged as the top-performing altcoin of the day, rising by over 21% to trade at $0.00001669. This marks a 3-week high for the meme coin, driven by strong buying activity. The bullish momentum is evident as it continues to gain traction in the market.

The next major resistance level for BONK is $0.00001779, with a potential for further upward movement if the current momentum continues. To sustain the rally, securing $0.00001618 as support will be crucial. If this level holds, the coin can target the next resistance point effectively.

BONK Price Analysis. Source: TradingView

However, the possibility of investors making a profit remains a risk. If selling pressure increases, BONK could slip below the $0.00001618 support and potentially fall to $0.00001548. This would invalidate the bullish outlook and lead to further declines in price.