The crypto market continued its recovery as Bitcoin approached an 8-year resistance level, potentially triggering a strong surge and fear of missing out among investors.
Bitcoin (BTC) rose above the important resistance level at $110,000 for the first time in days. Other top-performing altcoins were Axelar (AXL), AAVE (AAVE), Uniswap (UNI), and Pepe (PEPE).
Axelar’s price jumped to a high of $0.6317, its highest point since January and 110% above its lowest level this year. Similarly, AAVE surged to $315, up 178% from its April low, while Uniswap and Pepe gained more than 10%.
Bitcoin price to break 8-year resistance
The primary catalyst behind the market’s rally is Bitcoin’s breakout above $110,000 on Monday, increasing the odds of a retest of the all-time high at $111,900.
A look at the long-term chart shows Bitcoin hovering just below the ascending trendline that connects major swing highs since December 2017. It retested that trendline twice in 2021, again in March last year, and once more in May this year.
A move above that resistance could unlock further upside over the long term. Ark Invest’s Cathie Wood believes Bitcoin could jump 15x from current levels, while Fundstrat’s Tom Lee projects a price range of $200,000 to $300,000 this year.
Bitcoin’s price action is critical for altcoins, as BTC typically leads market direction. When Bitcoin rallies, other cryptocurrencies often follow, and vice versa. For instance, most tokens dropped by double digits when BTC fell from $111,900 to $100,700.
US and China trade talks and FOMC minutes
Bitcoin and other crypto prices jumped as traders waited for the outcome of the US and China trade talks.
Market participants are hopeful the two sides will reach an agreement on semiconductor and rare earth trade and tariffs. A resolution would likely ease tensions and support gains in both crypto and equities markets.
Additionally, the Federal Reserve will release minutes from its most recent meeting on Wednesday. These minutes may offer insight into the Fed’s thinking and policy direction for the remainder of the year. Any signs pointing to potential interest rate cuts would likely boost crypto prices further.
Separately, Axelar surged following its listing on Upbit, the largest crypto exchange in South Korea. Historically, such listings tend to result in significant, though often short-lived, price spikes.
AAVE token jumped as the total value locked in its network neared the key point at $27 billion. Together with Uniswap and Pepe, these tokens also jumped as Ethereum price broke out and reached a high of $2,790. Most ERC tokens jump when Ethereum is in a strong uptrend.