On Monday, the cryptocurrency market surged throughout the day, precisely aligning with the bullish outlook in the morning. Bitcoin began to rebound from the low point of 104925, with bullish momentum gradually picking up, peaking at 107221. Ethereum, after a pullback at the 2513 level, stopped falling and rose, following Bitcoin's rhythm and strongly reaching the 2636 level. The success of the strategy to buy on the morning dip demonstrates the strength of the bullish forces in the market. From a daily perspective, after a series of declines at the end of last week, Bitcoin did not further breach the 100,000 mark. After the consolidation and accumulation over Saturday and Sunday, the price maintained above 104000 and launched an upward attack, successfully reclaiming the critical dividing line between long and short positions at 106500, firmly standing above the midline of the daily level. This not only signifies that the market bulls have regained control, but also indicates that the previous adjustments have fully released the bearish pressure, laying the foundation for future increases. On the 4-hour level, both Bitcoin and Ethereum show a trend of consecutive upward candles. The short-term moving averages have turned upward again, returning to a bullish divergent arrangement. The formation of this technical pattern visually reflects the strong bullish momentum in the market, which is expected to continue in the short term. Currently, the short-term structure continues to rise, and various formations indicate that there is further upward momentum in price. As long as the midline in the short term is not breached, the bullish trend is unlikely to change, and the market will still maintain a bullish tone.
The continuation of the bullish trend in the market cannot be separated from multiple supporting factors. Regarding institutional holdings, Co-e research report points out that the trend of companies adopting crypto assets will continue into the second half of 2025, with approximately 228 listed companies holding 820,000 BTC. Some companies that purchased coins through leveraged financing have not faced short-term selling pressure. The continuous inflow of funds into spot ETFs and the accumulation behavior of whales provide solid bottom support for the market. In terms of trading volume, the 24-hour contract trading volume of Bitcoin on leading exchanges exceeded 50 billion USD, maintaining high market activity. At the same time, the macro environment is also relatively favorable, with the risk of economic recession in the US decreasing, expectations for the Federal Reserve to cut interest rates rising, and positive developments in regulatory policies related to cryptocurrencies, all creating a good external environment for the cryptocurrency market. The Federal Reserve's balance sheet reduction directly withdraws market funds, and high-risk altcoins, lacking institutional support, have become a disaster zone for selling. Data shows that over 70% of the top 100 altcoins by market capitalization have fallen to their yearly lows. Investor risk aversion has increased, leading to a 'great migration' of funds from altcoins to Bitcoin. The market capitalization share of Bitcoin has risen to 55%, reaching a new high since 2024, further squeezing the survival space for altcoins.