Bitcoin Nears $47K Level, Pulls Up Ethereum And Dogecoin: What's Driving The Crypto Rally?

Bitcoin and other major coins exhibited significant strength on Sunday evening as the global cryptocurrency market rose 2.2% to $2 trillion at press time.

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Cryptocurrencies were resurgent as Bitcoin soared past the $46,000 level for the first time since Jan. 5. The apex coin broke out of the $33,000-$45,800 range in which it was trapped for months.

The rise in the price of Bitcoin was driven by “fundamental buying pressure,” according to the on-chain analyst Willy Woo, who had tweeted earlier that “little green shoots were forming” in relation to the Apex coin. 

On Sunday, Factor LLC CEO and trader Peter Brandt tweeted BTC’s chart and said it was forming an ascending triangle. A similar structure formed in 2019 as well, according to Brandt.

An ascending triangle pattern is formed by price moves that allow analysts to draw a horizontal line along the swing highs and a rising trendline along the swing lows. These patterns are often used by traders to look out for breakouts — which can occur in either direction, up or down. 

The cryptocurrency crowd has not been discussing Bitcoin as much as other altcoins such as Cardano. The rate of discussion towards Bitcoin is at a one-year low, according to a tweet from Santiment.

“Look for crowd focus on $BTC to return as either a [bull run] or capitulation occurs,” said the financial market data and content platform.

On Sunday, cryptocurrency trader Michaël van de Poppe said that Ethereum is approaching an “interesting” area where he can see “multiple areas of liquidity to be hunted, but also higher-timeframe resistance zone.” 

Should that resistance zone be broken then a party time is on the horizon, as per the analyst. At press time, ETH was above the zone marked by the analyst in the chart he tweeted. 

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