Why the Crypto Market Is on the Rise Today?

Crypto News- In recent developments, Bitcoin (BTC) and the overall Crypto Market Cap (TOTALCAP) both achieved new annual highs yesterday, although there has been a slight decline today. Additionally, Conflux (CFX) has broken out from a descending resistance trendline that persisted for 217 days.

Notably, the troubled cryptocurrency exchange FTX, which had previously filed for bankruptcy, is currently engaged in discussions with three potential bidders in a bid to resurrect its trading platform. According to Benjamin Cohen, the recent surge in Bitcoin’s price may be attributed to a phenomenon known as capital rotation, where investors are reallocating their assets from alternative cryptocurrencies (altcoins) to Bitcoin.

Why the Crypto Market Is on the Rise Today?

The upward trajectory of TOTALCAP, which commenced on September 11, saw a significant breakthrough on September 18 when it successfully breached a descending resistance trendline. What’s more, this trendline later transitioned into a supportive role, as indicated by a green icon seven days later. Since then, TOTALCAP has experienced a rapid ascent, surpassing key horizontal resistance levels at $1.10 trillion and $1.16 trillion.

Nevertheless, after reaching a new annual high of $1.26 trillion yesterday, it retreated below the $1.25 trillion resistance level. A sustained breakthrough beyond this $1.25 trillion barrier could potentially result in a 14% increase, with the next resistance point at $1.43 trillion. Conversely, a 14% decrease would be necessary to reach the nearest horizontal support at $1.16 trillion.

Bitcoin’s price has been on a rapid ascent since October 13, as it successfully overcame the $31,300 horizontal resistance area on October 23, subsequently reaching a new yearly high of $35,280 the following day.

Throughout this surge, BTC surpassed the 1.27 external Fibonacci level based on the previous drop, which was at $33,700. If the current bullish trend persists, Bitcoin could potentially achieve a further 7% increase, pushing it towards the next resistance at $36,100, identified by the 1.61 external Fibonacci level. However, it’s essential to note that a daily close below the $33,700 area may trigger a 7% decline, leading to the nearest support at $31,300.

Conflux (CFX) faced a protracted period under a descending resistance trendline since its local high of $0.49 in March 2023, which led to a low of $0.10 in October. However, the trend reversed two weeks ago, and the rate of increase accelerated significantly, culminating in a high of $0.17.

Currently, CFX is on the verge of breaching the $0.18 horizontal resistance area. If this breakout is successful, it may pave the way for a substantial 70% increase, aiming for the next resistance at $0.26. However, a rejection from the $0.18 area could result in a 30% drop, potentially leading to a retreat to the nearest support level at $0.12.