After the successful implementation of the Bitcoin halving last Friday, the cryptocurrency market saw an increase on Monday. Bitcoin rebounded from a low of $64,525 in early trading on Monday and continued to rise to a support level of $66,000, reaching a high of $66,905 in the afternoon. At the time of writing, the trading price was $66,535, with a 24-hour increase of approximately 3%.
Shitcoins also saw a rise in trading on Monday, with the majority of the top 200 tokens by market capitalization experiencing positive gains. Only a few tokens saw a decrease of more than 2%. Ontology (ONT) had the highest increase, rising by 19.4% to $0.474, followed by Pepe (PEPE) with a 16.4% increase and WEMIX (WEMIX) with a 16.2% increase. Jito (JTO) had the largest decrease, falling by 5.5%, followed by MEW with a 4.9% decrease and Saga (SAGA) with a 4% decrease.
The total market capitalization of the cryptocurrency market is currently $2.43 trillion, with Bitcoin’s dominance rate at 53.7%.
After experiencing its worst performance in a single week in 2024, major US stock indices started the week on a positive note. The S&P, Dow, and Nasdaq all closed higher, with increases of 0.87%, 0.67%, and 1.11% respectively. The US dollar index remained stable, while the yield on the US 10-year Treasury bond fell by 100 basis points.
The target for the bulls is the resistance level of $67,000.
Bitcoin has surged more than 5% since last Friday, and the broader cryptocurrency market has also rebounded strongly, especially meme coins, which have seen double-digit rebounds.
Analysts at Secure Digital Markets stated in a report, “If Bitcoin breaks through the resistance level of $67,000, it could lay the foundation for a rebound to this year’s high of $74,000.”
Historically, Bitcoin halvings and supply reductions have often been catalysts for significant price increases. Analysts pointed out that the increased attention on Bitcoin has also brought additional attention to tokens within the Bitcoin ecosystem, and many believe that the industry will perform well in this bull market cycle.
Market analyst Rekt Capital stated that Bitcoin is currently in the accumulation phase after the halving, and once that is completed, the only phase left before the end of the bull market is the parabolic rise.
Other tokens that have performed well after the halving include Bitcoin’s second-layer solutions and other Bitcoin-related projects. For example, tokens such as Ordinals and the native STX token of the Stacks network have outperformed Bitcoin after the expected halving event. These second-layer projects enhance scalability and transaction speed by running on the Bitcoin blockchain, facilitating off-chain transactions. For example, STX has risen nearly 20% to $2.95.
Regarding spot Bitcoin ETFs, data from Dune Analytics showed a total net inflow of $59.7 million into the market on Friday, mainly driven by contributions from Fidelity and BlackRock. At the same time, outflows from Grayscale decreased to their lowest level since April 10.
Analysts added, “In contrast, the ETH/BTC trading pair remains stagnant, hovering near its annual low, with an uncertain future direction.”
An analyst warned that it is too early to say that Bitcoin will open an upward trend now, as historically, there is often a period of price weakness after the halving.
Neil Roarty, an analyst at investment platform Stocklytics, stated, “Although historically there has been a bull market after previous halvings, it is worth noting that these bull markets only lasted for a few months, not a few days or weeks. In fact, some analysts predict that the price of BTC will decline in the medium term, citing central bank officials’ reluctance to lower interest rates and venture capital’s hesitation to fully embrace the sector as factors that could hinder Bitcoin’s development.”
Neil Roarty added, “The investment environment for Bitcoin is much more complicated than it was four years ago. Those who expect BTC to skyrocket may need to prepare for a marathon, not a sprint.”
Bitcoin needs to break through $69,000 to confirm a breakthrough, according to Bitfinex derivatives director Jag Kooner. He stated in a report, “Although we have broken through the lower time range, it is important to remember that market depth has significantly decreased since the massive liquidation events totaling over $2 billion that occurred in the two days starting from April 12. This means that there are fewer open contracts and spot orders, making smaller orders more likely to impact the market.”
Kooner warned that another liquidation may occur as more leverage re-enters the market.
Haralampiev, the structured products director at Nexo, also stated that in order to reach new highs, Bitcoin first needs to break through the key levels between $69,000 and $70,000. He said, “The key levels to confirm bullish sentiment and price action are between $69,000 and $70,000. Ultimately, if market sentiment and positions continue to strengthen, prices above these levels could lead to Bitcoin attempting to break through its all-time high.”
Author: BitpushNews Mary Liu