Crypto market tests breakout above key resistance

Market overview

Crypto market capitalisation increased by a further 2.7% in the last 24 hours, reaching $2.54 trillion. At its peak earlier in the day, the market climbed to $2.58 trillion, its highest since early February. This indicates a period of consolidation above the 50-day moving average, an attempt to break free from the correction pattern following the decline, and a move above the 61.8% retracement level of the initial movement.

The sentiment index gained 5 points to reach 28 for the day, breaking out of the extreme fear zone and hitting its highest level since late January. This indicator's positive signal complements the favourable technical picture.

Bitcoin rose to $76K, later retreating to $74K, where it is trading as the European session begins. The market is currently testing the rally's stability. Meanwhile, sentiment in traditional markets has shifted: gold and stock indices closed higher on Monday, while the dollar index dived back below 100.

News background

According to CoinShares, global investment in crypto funds rose by $1.1 billion last week, marking the third week of inflows after five weeks of outflows. Investments in Bitcoin increased by $793 million, in Ethereum by $315 million, in Solana by $9 million, and in Chainlink by $3 million.

Since the beginning of the Iranian crisis, the total assets under management (AuM) in global crypto ETFs have grown by 9.4% to $140 billion, according to CoinShares.

Over the past 30 days, users have withdrawn more than 32,060 BTC from crypto exchanges. Only 2.44 million BTC remain on the balance sheets of trading platforms, the lowest figure in recent years, according to Crypto Patel.

Ethereum has outpaced Bitcoin in growth rates amid the return of institutional investors. According to Arkham, Erik Voorhees, the former CEO of the ShapeShift crypto exchange, purchased 24,968 ETH worth $56.5 million after a one-year hiatus.

Strategy bought a further 22,337 BTC ($1.57 billion) last week at an average price of $70,946 per coin. This is the largest bitcoin purchase since November 2024. Strategy now owns 761,068 BTC, bought for $57.61 billion at an average price of $75,696 per bitcoin.

BitMine acquired approximately 60,000 ETH over the past week. The company's reserves now total 4.59 million ETH, representing 3.81% of the Ethereum market supply. BitMine aims to accumulate 5% of all ether.