Bitcoin and Other Cryptocurrencies Continue to Rise

Bitcoin and other cryptocurrencies experienced a surge on Monday, as digital assets reached the higher end of a range that has been established during a two-week rally. Analysts are keeping a close eye on key technical indicators that could potentially sustain this momentum.

In the past 24 hours, the price of Bitcoin has increased by 1% to reach $34,600. It is inching closer to last week’s peak above $35,000, which marked the highest point for this leading cryptocurrency since it went through a harsh bear market in May 2022. Within a span of just over two weeks, Bitcoin has rallied around 30%, largely due to growing optimism surrounding the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by regulators. This optimism has also triggered a renewed wave of interest from investors in digital assets.

According to Alex Kuptsikevich, an analyst at broker FxPro, “The crypto market is continuing to stabilize at the levels it surpassed at the beginning of last week.”

While crypto enthusiasts are eagerly awaiting the Securities and Exchange Commission (SEC) to greenlight a spot Bitcoin ETF, the digital asset market could be influenced by other factors during this eventful week for financial markets.

Market Expectations and the Impact on Cryptocurrency

The upcoming Federal Reserve interest-rate decision and the release of key economic data, such as the U.S. jobs report, are set to influence the movement of the Dow Jones Industrial Average and S&P 500. However, these events also have implications for cryptocurrencies, including Bitcoin. As investors adjust their expectations regarding interest rates, it could cause a shift in the needle for both stocks and Bitcoin.

Bitcoin, in particular, is currently showing positive signs based on technical indicators. This has the potential to attract even more traders into the digital asset market. One notable indicator to watch is the “golden cross,” which occurs when Bitcoin’s 50-day moving average surpasses its 200-day moving average, indicating a rally with significant momentum. On Monday, Bitcoin’s 50-day moving average reached $28,310 and crossed the 200-day moving average at $28,233, according to Dow Jones Market Data.

The formation of this golden cross has created a bullish sentiment among market participants. It may generate a short-term influx of buyers who follow these popular signals, further boosting confidence in Bitcoin’s rally. Kuptsikevich commented on this development, stating, “A ‘golden cross’ has formed… which could further boost bullish confidence by creating a short-term flow of buyers following these popular signals.”

While Bitcoin remains in the spotlight, Ether, the second-largest cryptocurrency, also experienced gains of 2% to reach $1,820. Smaller tokens or altcoins also saw positive movement, with Cardano climbing 2% and Polygon popping 3%. However, memecoins such as Dogecoin and Shiba Inu saw relatively muted trading activity, hovering around flat.

In summary, market expectations surrounding the Federal Reserve’s interest-rate decision and upcoming economic data have the potential to impact both traditional stocks and cryptocurrencies. The emergence of a golden cross in Bitcoin’s technical indicators adds to the positive sentiment among traders. Furthermore, other cryptocurrencies like Ether and various altcoins are also experiencing upward momentum, while memecoins have remained relatively stable.