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Crypto Market Cap Hits $2T, As Bulls Regain Control of the BTC Price Action

The BTC price is up nearly 50% over the past three weeks, hitting a top of $46,767 in the past 24 hours. The bullish momentum has sparked a resurgence across the broader crypto market, which has reached a market cap of $2T for the first time in three months.

The digital asset class has added an impressive $400B as altcoins mirrored bitcoin’s recent uptrend in the past week. The crypto market first soared to a cumulative market cap of $1T at the start of the year and went on to almost triple in value, hitting a record high of $2.6T in May.

The asset class then suffered a major retracement that saw the market cap collapsed by more than 50% as BTC prices reset back below the $30K level. The dip had crypto analysts calling for a bear market, but a recent bounce in the price of multiple crypto assets now indicates that the bulls are gaining the upper hand.

According to the Average Directional Index (ADI), a tool used by analysts to determine whether the bears or bulls are in charge, a bullish trend is starting to strengthen.

Bitcoin Shows Signs of Buyer Exhaustion

The recent BTC run is starting to show signs of slowing down near the $47K resistance. The flagship crypto is down 1.6% on the daily chart to change hands below the $45.5K mark. Despite the slight decline from recent highs above $46.5K, one analyst is convinced that the bulls remain in the driver’s seat amid growing retail and institutional interest. 

According to Toby Chapple, an exec at digital asset firm Zerocap, the current dip could be a temporary cooling-off period after bitcoin accelerated heavily over the past week.

“Markets need to digest some overbought levels before attempting $50,000-$55,000 resistance. The derivatives markets are long, perpetual funding rates are positive for shorts, indicating short-term positive interest from retail,” Chapple explained.

Altcoins Register Massive Gains

Market sentiment has flipped bullish over the past few weeks, indicating that the bull’s BTC could be gearing up for a potential retest of the $50K resistance. Likewise, altcoins have also seen a resurgence, with top digital assets logging significant gains across the board.

The most influential altcoin, ETH, is holding gains above $3,100 despite correcting slightly from its multi-week high of $3,278. The price is up over 20% on the weekly chart, and ETH is well primed to continue its uptrend as long as the bulls can avert a decline below the $3,110 support.

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Meanwhile, other altcoins logged double-digit gains during the recent crypto market rally, as per data from coinmarketcap. For example, meme-based coin DOGE has pumped 40%, while ADA is up 34% over the past week.

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