The flagship cryptocurrency has started this week well and is about to break above $65,000.
This massive surge coincides with positive news from China where stocks ended the morning session higher.
Even memecoins and Bitcoin runes are exploding upwards amid low volatility from minor crypto sectors.
Analysts believe that Bitcoin is headed for a retest of its previous all-time high soon.
Bitcoin has started the new week on a high note, after jumping as high as the $64,000 mark during Monday's Asian trading hours.
This sudden price rise was fueled by renewed hopes of Chinese economic stimulus and an increased demand for bitcoin-based assets.
So far, the uptick in Bitcoin’s price has echoed across the market and has affected several other cryptocurrencies.
Other heavyweights like Ethereum and Solana are also trading green at the time of writing.
Let’s see what’s been up.
CoinMarketCap data shows that Bitcoin is up by as much as 3% over the last 24 hours.
This surge has led to a broader crypto rally that has swept across most of the market.
Ethereum for example, is up by around 2.7% with Solana trading at around 4% Meanwhile, XRP and BNB remained stable with significantly less volatile than the other major coins.
The crypto market’s movement
According to data from CoinGlass, this sudden price increase wiped out more than $110 million in short positions across the board.
The crypto liquidations
The Bitcoin bears alone, had nearly $65 million in losses. This was closely followed by Ethereum’s bears with $30.6 million in losses.
The memecoins also showed up to the party over the weekend, with massive price gains across the board.
Traders continued discussing a possible “supercycle” with some specific meme tokens leading the charge.
The memecoin supercycle
Some of the biggest gainers included MOG with 12% in gains over the last 24 hours and a staggering 25% gain.
Others included Brett and Book of Meme with 20% and 17% 24-hour price increases respectively.
Memecoins tied to the Bitcoin network and assets from the Runes protocol saw up to 10% gains over the weekend.
This pushed their weekly rise above 100% even though most have lost some of these gains within the past 24 hours.
Green on Bitcoin runes
This growing interest in memecoins came during a period of low volatility in the other more established crypto sectors.
These included layer-2 scaling solutions and decentralized storage projects.
But what caused this price jump?
The price jump on the flagship cryptocurrency aligns with positive news from China where stocks ended the morning session higher.
Reportedly, hopes for renewed economic stimulus grew after China’s Finance Minister, Lan Fo’an promised to support the struggling property sector.
Fo’an also hinted at further government borrowing during a Saturday briefing according to Reuters.
However, the actual announcements fell short of traders’ expectations.
Investors are now in the middle of uncertainty about whether China-linked assets will see continued inflows.
Nevertheless, this optimism has been great for Bitcoin which is now only inches from breaking above $65,000.
Bitcoin's recent upward momentum shows that its bullish trend (which began near $54,000 in early September) may soon resume.
Bitcoin had been held down in the past, due to resistance from a sharp rally in oversold Chinese stocks.
With Bitcoin now breaking above the $64,000 price level, it appears that the previous pullback has ended.
It also means that the next leg of its upward move is very close.
According to the charts, key resistance sits at around $64,461:
What to watch out for with Bitcoin
Keep in mind that this was the same price level Bitcoin was rejected from on 7 October.
If Bitcoin successfully closes above this $64,461 price level with a daily candle, the bulls should be able to reclaim the $66,500 zone.
If this happens, the ultimate resistance sits somewhere between $70,000 and its $73,800 mark where bulls and bears have struggled to gain control since March.
On the flip side, a break below $62,000 at any point would damage this bullish outlook and cause a plunge below $60,000.
Meanwhile, Ethereum also recently bounced off its 200-day Simple Moving Average (SMA).
At the same time, it remains in a consolidation pattern between the highs and lows from late August and early September.
Ethereum eyes a rally to $4,000
If Bitcoin successfully breaks and closes above this $64,461 price level, Ethereum just might follow suit.
The next resistance for this cryptocurrency is the $2,512 price level as highlighted by the Fibonacci retracement tool above.
Ethereum is already attempting to close above this price level with a daily candlestick.
On breakout, the next resistance sits at around $2,850 (which held the cryptocurrency up between February and its breakdown in August).
A break above the $2,850 zone could very well be the trigger for a rally toward $4,000.
Bitcoin’s recent surge above $64,000 has revived investor interest, especially as the crypto market enters a new week.
The focus now appears to be shifting towards major assets like Bitcoin and Ether as both indicate signs of returning strength.
As analyst Kyle Chasse says, "The tides are shifting and the next big rally is on its way".
All of the above are signs of an incoming “Uptober” rally and Bitcoin could be on its way to hitting $70,000 soon.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.