Even though US President Donald Trump’s tariff strategy and comments have negatively impacted trading confidence, Monday saw the top three cryptocurrencies by market capitalization—Bitcoin (BTC), Ethereum (ETH), and XRP—continue their rebound from the previous week. Bitcoin’s relationship with tech and US stocks keeps limiting gains below Monday’s resistance level of $88,000.
According to CoinGecko data, the top 10 cryptocurrencies are up, with values either staying the same or somewhat increasing over the past day.
The price of cryptocurrencies is determined by headlines, tariffs, and fear
As of this writing on Monday, the entire market capitalization of all cryptocurrency tokens has increased by 3.2% this month, from $2.76 trillion on April 1 to $2.85 trillion. Bitcoin tests sticky resistance near $88,000, market capitalization rises, sentiment gradually improves, and there are plenty of headlines that move the market.
Is it a fakeout or a purchase?
Bitcoin is gradually losing its appeal as “digital gold” and a “safe haven,” the US is imposing ridiculously high tariffs on China, while gold reaches fresh all-time highs. The crypto market keeps putting facts and fundamentals from earlier cycles to the test.
Since the outcome of the US presidential election in November, Bitcoin has rebounded from many flash crashes, but at what cost?
Despite numerous pro-crypto statements and developments, the Trump administration’s propensity to oversaturate the market with headlines is having less of an impact, and Bitcoin has not had a notable gain since March.
Over $218 million has been liquidated in the cryptocurrency market in the past day. A more thorough examination of exchange-specific liquidation data reveals that, in comparison to bullish traders, bearish traders—that is, traders who hold short positions in derivatives—are experiencing significant liquidations.
This may indicate that shorts are still profitable for longs and that the market is getting ready for a breakout. This might alter, though, as it has in the past during this market cycle.
In the Bitcoin bull market, it is crucial to seek confirmation of a break above significant resistances in order to ascertain whether this is a breakout and not just another fakeout.
Other criteria that are used to assess if a breakout is actually occurring include strong market movement, increased trade volume, and trader activity. According to Coinglass data, market participation is still mediocre as of Monday.
Derivatives traders’ involvement is gauged by the 24-hour change in volume, which shows a double-digit surge for the top 10 cryptocurrencies.
