On Monday, Bitcoin surged above $63,000, reflecting a strong risk-on sentiment among investors. This upward trend was accompanied by notable performances from various altcoins.

Ethereum Name Service (ENS) Shines

Ethereum Name Service (ENS) emerged as a top performer, driven by anticipation around the upcoming ENSv2 upgrade. Investors showed significant interest, pushing the coin’s value higher.

LayerZero and Meme Coins on the Rise

LayerZero, which recently launched its airdrop, saw its price rise to $3.6, marking a 40% increase from its lowest level last week. Among meme coins, Mog Coin reached an all-time high of $0.0000021, up more than 200% from its lowest point in June. Similarly, Bonk experienced a 32% rise from its lowest point last month, making it a standout in our weekly chart.

Performance of Other Altcoins

Other altcoins also showed impressive gains. Dogwifhat (WIF), Immutable X (IMX), Fantom (FTM), and Bittensor (TAO) were among the top performers, contributing to the positive momentum in the market.

Bitcoin and altcoins’ recovery occurred in a high-volume environment, with daily trading volume jumping by over 45% to $53 billion, the highest since June 28.

Market Sentiments and Global Influence

There was no significant catalyst for the rally, suggesting that the market’s positive sentiment might have been influenced by the recent French election. Although Marine Le Pen’s party won, the victory was less decisive than expected, which may have bolstered investor confidence.

Following the election, the US dollar index (DXY) dropped by 15 basis points, while global stocks saw gains. The French CAC 40 index rose by over 2%, and the German DAX index increased by 0.70%. In the US, futures linked to the Dow Jones and Nasdaq 100 indices were also positive.

Analysis of Bitcoin’s Future Movements

Despite the recent rally, there is a concern that the price surge of LayerZero, Mog Coin, and Bonk might be a “dead cat bounce”—a brief recovery followed by a continued downtrend.

This concern is heightened by Bitcoin’s recent patterns. The cryptocurrency formed a double-top pattern at $72,000 last month and has struggled to surpass that level since March 27. Additionally, Bitcoin remains below the 50-day and 100-day Exponential Moving Averages (EMA), indicating that bearish sentiments persist. Most recently, Bitcoin has formed a bearish pennant chart pattern.

Given these factors, there is a risk that Bitcoin could drop below $60,000 this week. If this occurs, altcoins like MOG, BONK, and ZRO may follow suit, resuming their bearish trends as they often mirror Bitcoin’s price movements.

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