Following Bitcoin's recent price surge to $87.5k, the altcoin market has started showing signs of recovery. Let's explore what's driving this and the predictions for the near future.
Current State of the Crypto Market
The total cryptocurrency market cap has neared $3 trillion during a recent European session. The crypto market is attempting to follow gold price movements ahead of new US tariffs and actions on Canadian and Mexican goods.
Factors Influencing Recovery
The ongoing partial recovery of the crypto market is influenced by several factors including renewed interest from large investors and macroeconomic conditions. For instance, US spot Bitcoin ETFs ended a five-week losing streak with a $744 million cash inflow last week and $111 million so far this week. The Bitcoin fear and greed index has reduced, stabilizing around 47%. However, Santiment warns of potential selloffs amid rising optimism.
Market Movement Forecasts
The broader altcoin market is likely to follow Bitcoin's trend, given its positive correlation. According to technical analysis, Bitcoin price may continue rising within the resistance range between $89k and $91k. A consistent close above $91k could lead to a rally towards $100k, positively impacting the altcoin market. However, rejection may lead to a correction down to $77k.
Caution is advised when assessing the short-term prospects of the crypto market, considering the potential for unpredictable price movements.
