Why Is the Crypto Market Up Today?

After a brief slowdown in trading activity earlier this week, the total cryptocurrency market capitalization (TOTAL) has rebounded. Leading coin Bitcoin (BTC) has gained 3% in the past 24 hours. Meanwhile, ENS is at the forefront of the altcoin rally, soaring by 34% within the same period. 

In the news today:

• BitWise has applied to the SEC for a crypto ETF based on its 10 Crypto Index Fund. The fund includes Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Polkadot, and Uniswap.
• Celsius is set to distribute $127 million from its Litigation Recovery Account to eligible creditors in Bitcoin (BTC), Ethereum (ETH), or US dollars.

Crypto Market Activity Regains Life

The total crypto market capitalization has increased by 3% over the past 24 hours. TOTAL currently stands at $3.25 trillion, just below the resistance of $3.36 trillion, which has formed its all-time high since November 23. 

The market uptick of the past 24 hours has triggered a surge in short liquidations. According to Coinglass, 99,732 traders have been liquidated, with total losses amounting to $282.44 million. Traders with short positions have suffered the most, accounting for $173 million of the liquidations.

If buying activity strengthens further, TOTAL will attempt to reclaim its all-time high of $3.36 trillion and rally past it. On the other hand, if the market witnesses a resurgence in profit-taking, TOTAL may resume its downtrend and fall toward critical support formed at $3 trillion. 

Bitcoin Witnesses Sharp Rebound

Bitcoin trades at $95,541, noting a 3% price hike over the past 24 hours. This surge comes after the coin’s price plunged to a low of $92,872 during Tuesday’s intraday trading session. 

On the daily chart, accumulation remains steady among market participants. Readings from BTC’s Relative Strength Index (RSI) confirm this. As of this writing, the coin’s RSI is at 66.05.

This indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a correction. On the other hand, RSI values below 30 indicate that the asset is oversold and may witness a rebound. 

BTC’s RSI reading of 66.05 indicates that the asset is gaining positive momentum, and buyers are currently stronger than sellers. If buying pressure strengthens, BTC’s price may rally toward its all-time high of $99,588 and attempt to breach it.

However, a spike in selloffs will invalidate this bullish outlook. If selling activity gains momentum, the coin’s price will resume its downward trend and seek support at $88,762. 

ENS Leads, Others Follow

ENS, the governance token of the Ethereum Name Service protocol, ranks as the top gainer with a 34% price surge over the past 24 hours. During Thursday’s early Asian session, the altcoin rose to a new year-to-date high of $37.29 before witnessing a slight pullback. It currently trades at $34.38. 

However, caution is advised, as ENS’ RSI readings indicate an overheated market. The altcoin’s RSI stands at 79.45, firmly in the overbought zone, where buyer exhaustion is common, and a price reversal becomes highly likely. If ENS reverses its current trend, its price may drop to $31.57.