Bitcoin and most altcoins rose slightly on Saturday, erasing some of the losses made during the week. BTC price rose to $105,000, up from this month’s low of $100,300, while the market cap of all coins jumped to $3.4 trillion.
Pepe, the second-biggest meme coin on Ethereum, jumped to $0.00001150, up from this week’s low of $0.00001040. Similarly, Casper Network (CSPR) jumped to $0.0145, up by 32% from its lowest point this week. Huma Finance (HUMA) soared for three consecutive days, reaching a high of $0.055.
Why Bitcoin and altcoins re rising
There are four main reasons why Bitcoin and altcoins like Pepe, Casper Network, and Huma Finance are soaring today:
- US and China trade talks.
- Buying the dip.
- Ethereum ETF demand.
- BTC cup and handle pattern
US and China trade talks
The first main reason why Bitcoin and altcoins are soaring is that the US and China will hold additional trade talks in London on Monday. These talks follow a phone call between Donald Trump and Xi Jinping earlier this week.
They come at a time when tensions between the two countries have started rising. China has accused the US of violating the agreement made in Switzerland by announcing export control on key items.
The US, on the other hand, has accused China of withholding the crucial rare earth materials that its industrial base depends on. Therefore, the talks, if successful, could trigger a face-to-face meeting between Trump and Xi, and end the ongoing tensions.
Bitcoin and altcoins rose amid dip buying
Further, Bitcoin and other altcoins jumped as investors bought the dip following the recent crash. It is common for market participants to buy the dip after a big decline.
This dip-buying can be the start of a new bull run, or it can be a dead cat bounce (DCB). A DCB, also known as a bull trap, is a situation where an asset in a free fall bounces back briefly and then resumes its downtrend.
Analysts recommend that investors should always take time before buying the dip since this may be a bull trap. One way of avoiding this trap is to identify specific resistance levels and only buying when they are crossed. In Bitcoin’s case, this area may be the psychological point at $110,000.
Ethereum ETF inflows
Bitcoin and other altcoins jumped as data showed that Wall Street investors continued to accumulate Ethereum ETFs. These funds added over $25 million on Friday. This increase brought the cumulative four-week gains to over $855 million. That is a sign that there is still demand from investors.
Another reason for the rally is that Circle launched a highly successful IPO, which pushed its valuation above $20 billion. Gemini and Kraken are now expected to launch their IPOs later this year.
Read more: Circle stock price prediction: is CRCL a good buy today?
Bitcoin cup and handle chart pattern
Further, Bitcoin and altcoins jumped because BTC has formed the cup-and-handle pattern, pointing to more gains.
The chart shows that the cup’s upper side was at around $108,877 and its lower side at $74,553, giving it a depth of $34,300. It is now forming the handle section. A bullish breakout above the upper side will lead to more gains, possibly to the resistance point at $142,000.
Therefore, a clear bullish breakout for Bitcoin will point to more gains among other altcoins.
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