A crypto market rally is happening today, with Bitcoin and most altcoins continuing their recent rally. Bitcoin price jumped to $86,000 for the first time since January, while Ethereum is slowly nearing the key resistance level of $3,000.
The market capitalization of all tokens jumped to over $2.91 trillion. The top gainers in the crypto industry were tokens like Pepe Coin, Sei, Artificial Superintelligence, Sui, Dogecoin, and Pudgy Penguins. This article looks at some of the reasons why Bitcoin and altcoins are going up today.
Bitcoin is going up as investors embrace a risk-on sentiment
One of the top catalysts behind the ongoing crypto market rally is the fact that investors have embraced a risk-on sentiment. This is also being seen in the stock market, where top indices like the Dow Jones, S&P 500, and Nasdaq 100 rose by over 1%. These gains were driven by top companies like AMD, Intel, Meta Platforms, and Arm Holdings.
The risk-on sentiment was driven by the ongoing crude oil retreat. Brent and the West Texas Intermediate (WTI) dropped by 4.20% and 4.75%, respectively. They moved to $99 and $91.50, respectively, as investors anticipate potential talks at this week’s United Nations General Assembly (UNGA). It also dropped as investors reacted to the rising oil flows through the Strait of Hormuz.
Therefore, data shows that the odds that the Federal Reserve will hike interest rates dropped on Polymarket today. This is happening a week after the Fed hiked interest rates, with most officials signaling that they will support a hike this year.
Crypto market is rising as demand jumps
There are signs that demand in the spot and futures market continues to rise. CoinGlass data shows that the volume in the spot market jumped by 87% to $290 billion, while the futures open interest rose to $158 billion. Bitcoin’s OI jumped by 11% in the last 24 hours to $61.7 billion, while Ethereum’s OI jumped by 7% to $36 billion.
These developments are happening as the Crypto Fear and Greed Index remains in the green. It has remained in the greed zone in the past few months. In most cases, Bitcoin and most altcoins normally rally when the gauge is in the greed zone.
Crypto Fear and Greed Index chart | Source: CMC
Bitcoin price technicals explain the surge
BTC price chart | Source: TradingView
Technicals also explain why the crypto market rally is happening. As the chart above shows, the coin formed a bullish flag pattern, which is made up of a vertical line and a descending channel. This channel is part of the handle section of the cup-and-handle pattern.
Bitcoin also just formed a golden cross pattern, which is made up the 50-day and 200-day moving averages crossing each other. Therefore, these patterns explain why Bitcoin made a strong comeback, and why altcoins like ETH and XRP are rising today.
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