Key Points
- Bitcoin’s price rebounds to over $62K amid increased investor optimism and institutional demand.
- Ethereum leads altcoin industry in bullish outlook, reducing fear of further capitulation.
The cryptocurrency industry, spearheaded by Bitcoin (BTC), experienced a rebound over the weekend, buoyed by increased investor optimism.
The total crypto market cap rose by around 5 percent to approximately $2.42 trillion on Monday during the early European trading session. Bitcoin’s price briefly touched a daily high of about $63K before settling around $62,855.
Ethereum and Bitcoin’s Fear and Greed Index
The price of Ethereum (ETH) led the altcoin industry in a generally bullish outlook, significantly reducing the fear of further capitulation. Bitcoin’s fear and greed index rose from 25 percent, indicating extreme fear, last week to about 52 percent, signaling neutrality on Monday.
Factors Behind Bitcoin’s Price Surge
Bitcoin’s price concluded last week on a bullish note after previously being mired in a bearish sentiment. The demand for the US-based spot Bitcoin ETFs has notably rejuvenated the bullish outlook. The significant Bitcoin sales by the German government also ended over the weekend.
On-chain data indicates that Bitcoin whales accumulated over 71K BTCs in the past week. The recent Bitcoin dip presented a unique opportunity for more long-term holders to accumulate coins, despite the capitulation of short-term holders.
The odds of former US President Donald Trump’s re-election spiked following an unsuccessful assassination attempt over the weekend. Notably, the pro-crypto presidential candidate is still expected to speak at the Bitcoin 2024 conference in Nashville. Several crypto leaders have already endorsed Trump’s presidential bid.
The general bullish outlook remains evident more than two months after the fourth Bitcoin halving. Furthermore, the correlation between crypto assets and traditional stock markets has been increasing in recent days.
Last week’s US economic data hinting at a possible interest rate cut later this year could significantly benefit the crypto industry.
Bitcoin’s Midterm Price Targets
From a technical perspective, Bitcoin’s price in the daily time frame broke out of a descending broadening wedge, indicating a possible rally towards $70K soon. With the support level around $61K regained on Monday, the buyers are in control, and a further uptrend could be recorded.
Moreover, Bitcoin’s price has consistently closed above the 200-day Moving Average (MA) in the past two days. The weekly Relative Strength Index (RSI) also rebounded from the 50 percent level, marking the end of the recent capitulation.
However, a potential rejection at around $63K could drive Bitcoin’s price towards $52K, which could take several months before rebounding in the euphoric phase.
