Bitcoin’s rally, breaking out to $36,520, has ignited a market-wide upturn, with Bitcoin’s performance outshining traditional assets and setting a bullish precedent for related cryptocurrencies, notably Ravencoin, which reached its highest level since July.
- The upbeat sentiment in Bitcoin, buoyed by positive technical patterns and market conditions, is echoed in altcoins like Ravencoin, which has also witnessed a substantial increase, signaling a possible trend where Bitcoin’s momentum could lead to a broader crypto market resurgence.
- As Bitcoin gears up for the next bull run with factors like ETF approvals and favorable Federal Reserve policies, Ravencoin and other Bitcoin-related tokens are riding the wave, with Ravencoin in particular standing out as its price soars, reflecting heightened investor interest and optimism in the sector.
By: Crispus Nyaga
Bitcoin price made a strong bullish breakout on Thursday as it completed the bullish pennant pattern. The coin jumped to a high of $36,520, the highest level since May 2022. This rally means that BTC has outperformed other popular assets like gold, silver, S&P 500, and Nasdaq 100.
Why BTC price surged
There are a few reasons why Bitcoin made a major bullish breakout. First, as shown below, Bitcoin price has been forming a bullish pennant pattern. This pattern is characterized by a long flag pole followed by a small triangle pattern. Now, Bitcoin surged after the triangle pattern reached its confluence level.
Therefore, Bitcoin’s breakout above this pennant means that the coin will surge to the next important psychological level at $40,000. A break above $40k will open the possibility of the coin soaring to the 50% Fibonacci Retracement level at $42,000.
Second, Bitcoin price has jumped because of the improving market conditions. For example, American stocks have continued their bullish comeback. The Dow Jones, Nasdaq 100, and S&P 500 indices have risen in the past nine days straight and are paring back their recent losses. This is a sign that investors have embraced a risk-on sentiment.
Further, Bitcoin is surging as investors wait for the spot ETF approval. Most analysts believe that the approval will happen in the next few weeks or months. If this happens, it will lead to more demand at a time when supplies are running low. Bitcoin supply in exchanges has dropped to the lowest point in months.
There are other reasons why BTC price is surging. For example, the Federal Reserve has pointed that it will not hike interest rates again. In a statement last week, the bank left interest rates unchanged between 5.25% and 5.50%. Most analysts believe that the Fed will not hike again.
Further, the crypto fear and greed index has moved to the greed zone of 75. In most cases, Bitcoin price jumps when this index is in an uptrend. Another index, known as the VIX, has crashed hard, signaling that volatility in the stock market has eased.
Also, Bitcoin ETFs have passed Ethereum in popularity. The volume of Bitcoin ETFs jumped to over $18 million in the past 24 hours. Bitcoin is also surging ahead of next year’s halving event.
BSV, Ravencoin, Stacks, ORDI price jump
In most cases, Bitcoin-related cryptocurrencies tend to have a close correlation with BTC. Bitcoin SV price surged to a high of $55.36 on Thursday and is quickly nearing its all-time high of $58.70. It has jumped by almost 100% from the lowest point in September.
Ravencoin, a Bitcoin clone, has also bounced back, reaching a high of $0.018, the highest level since July this year. Stacks (STX), a blockchain project that provides a smart contract layer for Bitcoin also soared to a high of $0.7270, the highest level since July.
Other BTC-related coins like Bitcoin Cash, Litecoin, and Bitcoin Gold have also embarked on a major rally. In addition to the close correlation, analysts believe that some companies will also apply for spot ETFs if the SEC finally approves an ETF.
ORDI, the native token for Bitcoin Ordinals, also soared to a high of $14.65 as the volume of those NFTs jumped and after Binane listed the coin.
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