Why is the crypto market bullish today?

The total market capitalization of crypto (TOTAL) and Bitcoin bounced back slightly over the weekend, with BTC currently trading just below the $110,000 mark. Meanwhile, Floki (FLOKI) increased by 14.4% today.

Notable news today:

– Elon Musk announced the establishment of the "America Party" on the X platform, aiming to challenge the current two-party system. The new party will support Bitcoin, and Musk confirmed this when responding to a user.

– Toncoin (TON) adjusts down after UAE regulators dismissed information that staking $100,000 in this cryptocurrency could help residents qualify for a golden visa (golden visa). Previously, The Open Network had announced the possibility of this qualification.

The crypto market seeks to establish a support zone

The total market capitalization of crypto has increased by 45.83 billion dollars in the past 24 hours, bouncing back from last week's losses. TOTAL is currently at 3.37 trillion dollars.

To maintain the upward momentum, TOTAL needs to hold the support level around 3.31 trillion dollars. If this is achieved, it will lay the foundation for the next uptrend, potentially pushing the market capitalization to the threshold of 3.4 trillion dollars.

Total market capitalization of crypto | Source: TradingViewIf TOTAL cannot hold the support level of 3.31 trillion dollars, the market may face a decline. Losing this threshold will lead to a correction to 3.26 trillion dollars or even lower at 3.21 trillion dollars. This indicates a weakening market sentiment.

Bitcoin approaches its all-time high

The price of Bitcoin is currently at $109,114, just a little away from the important resistance level of $109,476. To continue the upward trend and possibly break the $110,000 mark, BTC needs to successfully break the current resistance zone.

The relative strength index (RSI) is showing strong upward momentum, with the indicator only 2.3% away from the all-time high (ATH) of $111,970. Thus, the market is experiencing significant buying pressure supporting the price of Bitcoin.

Bitcoin Price Analysis | Source: TradingViewHowever, if Bitcoin faces selling pressure from investors, it may struggle to overcome the $109,476 mark. In that scenario, Bitcoin might not surpass the aforementioned resistance level and could potentially drop back to the $108,000 area or lower. This development would weaken the current bullish outlook while signaling the risk of a short-term correction.

FLOKI leads the altcoin group

FLOKI has increased by 14.4% in the past 24 hours, benefiting from the positive sentiment of the overall market. This memecoin is currently trading at $0.000085. This upward momentum indicates that FLOKI has the potential to continue to break out in the short term.

Currently, FLOKI is facing a resistance zone at $0.00009006. The Parabolic SAR indicator shows that a bullish trend is forming, suggesting that this altcoin may continue to move upward in the near future. If FLOKI breaks through the resistance zone and turns it into support, there is a high likelihood that a prolonged price increase will occur.

FLOKI Price Analysis | Source: TradingViewIf FLOKI cannot break through the resistance level of $0.00009006, a correction may occur. In that case, this altcoin will drop to the support area at $0.00008172 or lower. If it breaks below this support level, the current bullish outlook will be invalidated, indicating the possibility of a price trend reversal for FLOKI.

Minh Anh