Bitcoin Surges on Geopolitical Tailwinds, Lifting Global Crypto Markets

The crypto market experienced significant momentum late last week, with Bitcoin extending that to Monday and surpassing the $115,000 levle, which has rekindled optimistic sentiment throughout the digital assets sector.

Prominent altcoins, such as VIRTUAL, HYPE, and ZCASH, are experiencing significant gains, indicating a resurgence in investor confidence and an increase in market liquidity as we approach a week marked by high volatility.

As market participants focus on significant macroeconomic developments and pivotal technical movements, the digital asset sector is filled with a sense of optimism.

The question now is whether this upward trend can maintain its momentum, or if the market is preparing for yet another series of significant downturns. Cryptos seemed to have lost the niche boost after the flash crash on October 10, which liquidated a record $20 billion and wiped out over 1.6 million traders.

The volatility since then has had investors questioning the much-touted momentum in cryptos this year, especially in Bitcoin and altcoins.

But a rally in Wall Street stocks last week to record highs boosted animal spirits in the riskiest corners once again. The trend from late last week in favor of risk assets extended into Monday, with Bitcoin breaking above $115,000.

Gepolitical Headlines Favor Cryptos

Bitcoin surged by 3.6% on Monday as Asian stocks and US futures experienced a rally and investor confidence strengthened amid indications of a potential easing in trade tensions between the US and China.

The action established a more resolute mood as we approach a week filled with pivotal central bank announcements and significant earnings reports from major companies.

Cryptos mirrored the upward movement in stocks, with the overall market capitalization increasing by 3.7%, to $3.9 trillion. The price of Ether increased by 7% to reach $4,200, while BNB saw a gain of 2.8%, bringing it to $1,149. Additionally, XRP experienced a rise of 1.3%, reaching $2.64.

This comes as Trump and Xi prepare to assess the initial trade agreement amid easing tensions between the world's top economies. During the weekend, high-ranking economic officials from the US and China established a framework that is anticipated to be evaluated by Presidents Donald Trump and Xi Jinping later this week in South Korea.

An agreement that suspends heightened US tariffs and Chinese restrictions on rare earth exports would alleviate concerns following months of increasing trade volatility.

Focus is shifting towards the upcoming policy meetings in Japan, Canada, Europe, and the United States.

The Federal Reserve is anticipated to lower interest rates by 25 basis points following a slight underperformance in September inflation compared to expectations.

However, the potential impact of a government shutdown on data continues to raise concerns among market participants. Fed futures point to a 98% probability of a 25-basis-point rate cut this week.

Declining inflation and positive earnings outlooks have enhanced cyclical positions within various portfolios.

Crypto Treasuries in Focus

Treasury yields softened, the dollar stabilized, and gold experienced some profit-taking as market participants shifted their focus back to growth opportunities.

There is growing institutional interest as traders shift focus to digital asset treasuries.

Worries regarding Strategy’s (Nasdaq: MSTR) growth potential stand in stark contrast to the resurgence of institutional interest in companies like Metaplanet, BitMine, and Galaxy Digital.

Mining companies received a boost from shifts towards AI infrastructure and increased capital investments, with market participants highlighting TeraWulf, CleanSpark, and Iren as initial winners in this trend.

Among the leading assets, Solana, Jupiter, and Virtuals excelled due to ecosystem drivers, whereas Tron and Ethena exhibited varied performance in the context of DeFi shifts.

The trajectory of interest rates, the dynamics of US-China discussions, and the performance indicators will determine if Bitcoin can sustain its momentum towards the $120,000 mark.

Outlook for Altcoins

Virtual Protocol's pricing has been stuck in a declining parallel channel for the past few months.

Another lower high was set when the token attempted to break out, indicating that the bears are becoming more dominant. Still, the VIRTUAL price is expected to skyrocket because it has breached the established structure thanks to a huge surge in buying volume.

According to TradingView, the price has surged past the channel, driven by significant buying momentum; nonetheless, the indicators suggest a period of consolidation may precede the next upward movement.

The RSI has reached the overbought territory and seems to be stabilizing.

Conversely, On-Balance Volume has surged and shows a consistent upward trend. A flattening RSI combined with a rising OBV typically indicates a bullish trend, suggesting accumulation is taking place during periods of consolidation.

This suggests that informed capital is discreetly accumulating assets despite price fluctuations, generating underlying bullish momentum.

Zcash Eyes a Solid Surge

The price of Zcash is experiencing one of the strongest bullish trends observed in recent years.

The purchasing activity surged to levels reminiscent of the 2021 bull market, facilitating a significant price increase following an extended period of upward consolidation.

At this moment, ZEC's price has exceeded a significant resistance level, which marked the peak of the market during the 2021 bull run. Should the price maintain its position within the established range, a sustained upward movement could facilitate a breakthrough to higher targets.

The weekly trading session for ZEC closed above the $293 to $316 resistance zone, successfully overcoming this range.

This suggests that buyers have had a firm grip on the rally, and as long as the On-Balance Volume keeps going up, the momentum should be there.

The 50/200 weekly moving average just saw a bullish crossover, which bodes well for the token's further ascent and potential advancement towards higher goals at $471.

Dash Looking to Break Out?

Since the rally surpassed the effects of the 2022 bear market, the $DASH price has remained confined within a significant descending parallel channel. The token's previous efforts to surpass the resistance have consistently faced significant pushback, yet the present situation offers a glimmer of optimism.

There is a strong indication that the price may break out above $60 in the near future, as it has been holding its ground at the crucial support level of $40 for the past few weeks.

TradingView says that, maintaining critical support around the 200-day moving average, the DASH price remains operating within the downward parallel channel.

A possible breakout of the present range is being hinted at by the unusual volume rise. The relative strength index, on the other hand, has returned to overbought levels. This move was previously made in response to a strong rejection, but the recent upturn suggests there might be more room for price growth.

Therefore, the price can break out of the channel and rise over the resistance level between $61 and $63 when the RSI goes back to an overbought position. Once these thresholds are achieved, the Dash price has the potential to start a strong ascent, with a target of $100 by 2025.

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