The week began with a robust rally in cryptocurrencies as bitcoin (BTC) once again traded above its 2021 peak, recovering from recent losses. During U.S. trading hours on Monday, Bitcoin (BTC) broke beyond $70,000 for the first time in ten days and gained more than 7% in the previous day. In the same time frame, ether (ETH) on Ethereum increased by 6%, while tokens for the two main layer-1 blockchains, Avalanche (AVAX) and Solana (SOL), increased by more than 10%.

Nearly every digital asset was involved in the surge; the broad-market CoinDesk 20 Index (CD20) was up 6.1% on the day and all of its components were in the green. According to CoinGlass statistics, the abrupt rebound liquidated $195 million in leveraged derivatives bets across all crypto assets, of which $129 million were short positions aimed at taking advantage of falling prices. The amount of bitcoin that was shorted hit $53 million, which is less than the daily average for the last few months.

Despite the price spike, there were comparatively few short liquidations, indicating that few market participants were utilising leverage to gamble on more deterioration.

Following its breakout from a consolidation pattern, Bitcoin aims for $83,000 and above.

The jump on Monday suggested that the recent correction in the cryptocurrency markets may be coming to an end. Last week, BTC dropped below $61,000 from record highs above $73,000 due to a combination of lacklustre inflows into new U.S.-listed spot bitcoin ETFs and increased selling of Grayscale's GBTC fund. As Bitcoin breaks out above its consolidation pattern, it may aim for new all-time highs, according to a forecast released on Monday by analytics firm 10x Research. The study suggested that the breakthrough may portend a $15,000–$20,000 price increase for bitcoin's next move from around the $63,000 mark, based on a symmetrical triangle formation, a technical analysis chart pattern. That may push Bitcoin to $83,000.

Given that prior market cycle peaks were "retested and broken once more, BTC has tended to put in significant rallies," according to Markus Thielen, founder of 10x, the 2021 peak at $68,000 was another crucial level that BTC cleared today. According to the research, various central banks are taking dovish positions, which is supporting the upswing and should help bitcoin. "The Fed signalled that they are willing to accept higher inflation for longer and are eager to slow down quantitative tightening," said Thielen. "The Bank of Japan and the Swiss National Bank also surprised on the dovish side." The analysis made clear that bitcoin often does well during U.S. election years have historically advanced 100%–200%, and 2024 is one of those years. This further strengthens the argument for higher prices later in the year.

"Our upside targets of $83,000 and $102,000 could slowly be at play,"

added Thielen