Bitcoin, Ethereum Rally Alongside Stocks as Market Sentiment Shifts from 'Neutral' to 'Greed'

Leading cryptocurrencies rallied handsomely Monday, coinciding with fresh highs scaled by stocks.

Major cryptocurrencies enjoyed a handsome rally on Monday, coinciding with fresh highs being scaled by stock indices.

Bitcoin soared past the $65,000 mark during morning trading hours and rose to $66,434 late evening, marking its highest level since July 30.

Ethereum also surged to a two-week high of $2,630, notching a nearly 7% gain in the last 24 hours.

Digital asset trading firm QCP Capital highlighted some interesting historical similarities with Bitcoin’s recent upward price action, which preceded the U.S. elections.

Over $245 million was liquidated from leveraged positions in the last 24 hours, with downside bets to the tune of $209 million getting wiped out.

Bitcoin’s Open Interest-Weighted Funding Rate soared to levels not seen since late July, signaling the dominance of bullish leveraged traders.

The market sentiment dramatically shifted from “Neutral” to “Greed,” according to the Cryptocurrency Fear & Greed index, hinting at a potential surge in buying pressure.

Top Gainers (24-Hours)

The global cryptocurrency market cap stood at $2.29 trillion, showing a 4.75% increase over the last 24 hours.

Stocks kicked off the new trading week with a blockbuster opening. The Dow Jones Industrial Average rose 201.36 points, or 0.47%, to close at a record high of 43,065.22. The S&P 500 jumped 0.77% to end at 5,859.85, also a record high. The tech-heavy Nasdaq Composite gained 0.87% to hit 18,502.69.

The rally was spearheaded by AI juggernaut Nvidia Corp.’s (NASDAQ:NVDA) record close on Monday after its shares rose 2.4% in the regular trading session.

Earnings season began with JPMorgan Chase & Co. (NYSE:JPM) reporting its third-quarter numbers last week. This week, investors were keeping a close watch for the next batch of big earnings reports from major banks and technology companies, including Goldman Sachs Group Inc. (NYSE:GS) and Netflix Inc. (NASDAQ:NFLX).

Best Cryptocurrency Scanners

Crucial Ali Martinez Analysis: Cryptocurrency analyst Ali Martinez drew attention to his projection from last month and how things were panning out as anticipated.

On Sept. 23, the analyst predicted Bitcoin’s fall to $60,000, followed by a rebound to $66,000, a retrace to $57,000, and finally a breakout toward $78,000.

Martinez noted that with the first three prerequisites met, King Crypto was en route to $78,000.

Another renowned technical analyst, Rekt Capital, highlighted that Bitcoin needed one daily close above $65,000 and a subsequent retest to sail into the $65000-$71350 area.

"Each of these moves have ended in lower highs, but there is a good chance that this series of lower highs could end with a daily close above $65,000," the analyst said.

#BTC Daily Candle Closes above ~$65000 (blue) followed by successful retests have enabled moves into the $65000-$71350 region

Each of these moves have ended in Lower Highs but there is a good chance that this series of Lower Highs could end with a Daily Close above $65K… pic.twitter.com/QmmQwLcDaI

A photo by Igor Faun on Shutterstock

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