The recent Bitcoin price rise above $65K has carried with it the altcoin market led by Solana, Toncoin, and Avalanche, among others.
Bitcoin (BTC) price ended the recent correction phase after closing last week in a Doji candlestick that indicates buyers are aggressively accumulating. The flagship coin opened Monday on a bullish note to trade around $65,232 at the time of this writing, up around 2.4 percent in the past 24 hours.
Following the notable Bitcoin price rebound, the altcoin market closely followed, thus pumping the total crypto market cap by over 3 percent to around $2.54 trillion.
Bitcoin Price Gets Ready for New ATH
After establishing a robust weekly support range between $60K and $63K, Bitcoin price is well primed to revisit the all-time high (ATH), which was established in May. The daily Relative Strength Index (RSI) closely followed the underlying value in the market rebound. Notably, as Bitcoin price against the US dollar rebounded above $63k earlier today, the daily RSI also broke out of a falling logarithmic trend.
I wanted to post this tomorrow but my excitement won't allow me. $BTC displays a rare candlestick reversal hammer as it did in Jan 2024 which led to a huge breakout upside. https://t.co/sRVtXCsHWL pic.twitter.com/waDeb7ekGa
— Mikybull 🐂Crypto (@MikybullCrypto) May 5, 2024
However, Bitcoin price must regain the daily 50 Moving Average (MA) as a support level and consistently close above $67k in order to maintain a bullish rally to ATH.
Furthermore, on-chain data shows that short-term Bitcoin holders have been distributing profits to the altcoin market in anticipation of a fresh altseason. As the weekly Bitcoin dominance continues to grind higher, the RSI has been forming a bearish divergence.
Additionally, the ETH/BTC pair has been forming a reversal pattern, which is reminiscent of the 2021 crypto bull run.
Top Reasons to Bet on BTC
The worst in the cryptocurrency market is undeniably behind, with former FTX boss Sam Bankman-Fried (SBF) and former Binance CEO Changpeng Zhao behind bars. With more clear cryptocurrency regulatory frameworks around the world gradually being enacted, led by Europe’s MiCA, it is safe to assume the mass adoption of web3 protocols and digital assets is underway.
As Coinspeaker recently explained, more global jurisdictions will inevitably follow the United States and Hong Kong in approving spot Bitcoin ETFs. The demand for Bitcoin and other digital assets by institutional assets has continued to rise fueled by the need to tokenize real-world assets (RWA) on blockchain.
Meanwhile, the Bitcoin blockchain has received significant support from web3 developers seeking to build layer two with smart contract capabilities. As of this report, the Bitcoin layer two projects had a combined valuation of about $3.5 billion and a 24-hour trading volume of around $106 million.
Price Targets
Several Bitcoin price targets for this bull cycle have been issued by different analysts led by Wall Street pundits. While some anticipate Bitcoin price to rally as much as over $1 million in this cycle, Bernstein analysts expect the flagship coin to reach at least $150k by the end of next year.
The Bernstein analysts led by Gautam Chhugani and Mahika Sapra noted that the notable spot Bitcoin ETF cash inflow has made the risk-to-reward ratio more attractive.
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