Bitcoin crosses $90,000 as crypto market rallies: What's driving surge?
What's the story
The cryptocurrency market has turned bullish, with Bitcoin nearing the $90,000 mark and Ethereum crossing the $3,000 milestone. In fact, Bitcoin was trading at $90,225 while Ethereum was at $3,047 today. The price of Bitcoin and Ethereum has surged by around 2.88% and 3.69%, respectively, in the last 24 hours.
Performance
Altcoins also see significant gains
Along with Bitcoin and Ethereum, other major altcoins such as BNB, Solana, Tron, Dogecoin, and Cardano have all gained over 3%. However, Hyperliquid has seen a slight dip of 0.51% in the same period. Riya Sehgal from Delta Exchange noted that Bitcoin's recovery of key moving averages is a strong sign of momentum returning to the crypto market after weeks of consolidation.
Year-end outlook
Bitcoin's year-end performance and market sentiment
Sehgal also pointed out that Bitcoin requires a modest 6% rally to end the year on a positive note. This comes as overall sentiment remains cautiously bullish, waiting for confirmation of a breakout above key resistance levels. Over the past week, Bitcoin and Ethereum gained 1.34% and 0.27%, respectively, while other major altcoins such as BNB, Solana, Cardano, and Hyperliquid rose over 4%.
Market analysis
Bitcoin's resistance and support levels
Akshat Siddhant from Mudrex said that after a weekend pullback, Bitcoin is trying to break resistance at $90,000. He also highlighted the $93,300 level as a key threshold for Bitcoin to close the year on a strong note. Currently trading near $90,225, BTC faces resistance at $91,700 while $85,000 continues to act as strong support.
Market influences
Potential geopolitical factors influencing crypto market
Nischal Shetty, Founder of WazirX, said Bitcoin signals a positive near-term movement supported by favorable macro factors that might influence cryptocurrency prices in the coming weeks. A possible Russia-Ukraine peace deal could ease fiscal pressure in the EU region. Lower geopolitical risks may trigger short-term altcoin rallies and also inflows into Bitcoin. However, if the US Federal Reserve maintains a restrictive stance on rate cuts, the crypto market could enter a consolidation phase.