Bitcoin edged higher on Monday, gaining 5% to 11,822 USD. The cryptocurrency returned on the uptrend after being locked in a symmetrical triangle pattern for several days, which means that the direction of a breakthrough will define the short-term momentum of the coin. Bitcoin was in a slight correction, fluctuating near 11,000 USD during the 10 days after reaching a year-to-date high of over 13,700 USD on June 26. Many analysts suggested the correction of the cryptocurrency will be even stronger, but the Bitcoin defended its positions and several times tested the support rates of 10,000 USD and below.
As of 06:40 a.m. ET, the cryptocurrency is trading with an increase of more than 5% to 11,822 USD.
A sustainable move higher will open up the way towards a new bullish goal at 12,000 USD. Once this psychological handle is out of the way, the upside is likely to gain traction with the next focus on 12,400 USD (June 28 high) and 13,000 USD.
The analysts are noting short-term behavior could nonetheless point to lower lows in the coming days and weeks. The last week’s performance ended on a weekly close below resistance just above 11,440 USD.
The main driver of the recent gain is the JPMorgan report that the emergence of a new bond asset class denominated in crypto assets like Bitcoin has become a possibility following the approval of two European companies.
But according to the latest analysis, there is likely to be a correlation between holidays and the price of Bitcoin. This is seen at least during times when the bull runs have been pronounced. The research states that the 2017 rally was fuelled around Thanksgiving and Christmas in the United States.
The reason behind the holiday effect on the price of Bitcoin is related to the FOMO (Fear of Missing Out). It has been the trend for family members to talk to the most tech-savvy about what they saw about Bitcoin in the mainstream news. The rise in the Bitcoin price also coincides with the increase in numbers of searches in Google. Even during situations when the market is doing reasonably well, holidays come with a potential to fuel in a renewed interest in the buying of cryptocurrencies and Bitcoin. This behavior is also known as FOMO and usually seriously supports the price of the cryptocurrencies.
Crypto market recap
The valuation of the crypto market has remained relatively stable in the past seven days, hovering at around 320 billion, but following the recent gains, the total market value rose to 335.652 billion USD.
Ethereum is the best performing cryptocurrency today, adding 6.8% to 308.99 USD. The gains on the weekend emanated from the support that had been formed between 270-280 USD. Prior to the brief correction, Ethereum spent most of last week seeking balance following the losses that had it tumbling from the yearly highs. Consolidation under 300 USD took the center stage last week but the break above both the trendline resistance and the 50 Simple Moving Average (SMA) at 294.43 USD paved the way for gains spiking above.
Ripple’s XRP is up by 0.7% to 0.3969 USD, being the worst performer today.
Bitcoin Cash and EOS are gaining 2.9% each, while Litecoin is up by 1.5%.
TRON, the tenth largest cryptocurrency by market value, edged higher by 6.2% to 0.0343 USD.
Meanwhile, Monero keeps its strong performance from yesterday gaining another 6% to 103.64 USD.