Bitcoin (BTC) skyrocketed above the $1 trillion market capitalization today, pulling the total crypto market capitalization close to $2.3 trillion. This marks a complete 100% recovery from the June 22 lows when the total crypto market capitalization had plunged to about $1.15 trillion.
According to Chainalysis, the Central and Southern Asia and Oceania region has seen a massive increase of 706% in crypto transactions between July 2020 and June 2021. The total transaction value was $572.5 billion, accounting for 14% of the global transaction value.
Daily cryptocurrency market performance. Source: Coin360
The Bank of America Corporation (BoA) subsidiary, BofA Securities published a report on Oct. 4 that projected a bullish long-term picture for cryptocurrencies. The report estimated that by June 2021, about 221 million users had either traded cryptocurrencies or used a blockchain application, a massive increase from 66 million users in May 2020.
The BofA report said that the crypto sector was “too large to ignore” and it comprised “so much more” than just Bitcoin.
Could Bitcoin pick up momentum and challenge the all-time high? Will this boost interest in altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin broke and closed above $48,843.20 on Oct. 4, which was the first sign that the correction may be over. This may have attracted short-covering by the bears, resulting in a rally on Oct. 5 and today.
BTC/USDT daily chart. Source: TradingView
The bulls have thrust the price above $52,920, which invalidates the head and shoulders (H&S) pattern. The 20-day exponential moving average ($46,947) has turned up and the relative strength index (RSI) is close to the overbought zone, indicating that bulls are in command.
If bulls sustain the price above $52,920, the BTC/USDT pair could further pick up momentum and rally to $60,000. This level may act as a resistance but if crossed, the pair could challenge the all-time high at $64,854.
Contrary to this assumption, if the price fails to sustain above $52,920, it will suggest that demand dries up at higher levels. The pair may then correct to $48,843.20.
Ether (ETH) bounced off the 50-day simple moving average ($3,317) on Oct. 4 and the bulls extended the recovery on Oct. 5. However, the bears tried to stall the rally today and they pulled the price to the 50-day SMA.
ETH/USDT daily chart. Source: TradingView
The long tail on the day’s candlestick shows aggressive buying near the 50-day SMA. The rising 20-day EMA ($3,262.50) and the RSI