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Bitcoin topped $54,000 on Monday, breaking through a key resistance level that has been restricting the price since mid-February.
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SOL, MATIC, and ATOM led the altcoin rally, while crypto-focused stocks Coinbase, MicroStrategy, Marathon Holdings, and Riot Platforms posted double-digit gains.
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According to Swissbrock, Bitcoin’s next short-term target is $57,000-$58,000.
Bitcoin {{BTC}} topped $54,000 on Monday, surging to its highest since November 2021 and breaking out of its recent sideways range amid a sudden resumption of the crypto rally.
The largest cryptocurrency by market capitalization broke through a key resistance level at $53,000 during the morning U.S. trading session, halting the price gains of the past two weeks, according to CoinDesk data, but in the afternoon hours. By then, the stock had quickly risen to just below $55,000, and has since rebounded slightly. At the time of writing, BTC is trading at $54,400, up nearly 5% in the past 24 hours. It outperformed the broader market CoinDesk 20 Index (CD20), which rose 4%, topping the 2,000 mark for the first time.
Ether {{ETH}}, the second-largest crypto asset, also rose nearly 4% to hit a 22-month high of $3,200.
read more: Ether Bitcoin Rise Is Not Just Due to Potential ETF Approval: Bernstein
Solana's native token {{SOL}}, Polygon's MATIC, and Cosmos' ATOM led the gains among the major cryptocurrencies in the CD20 index, rising between 5% and 7%.
The rise in cryptocurrencies also led to gains in stocks focused on digital assets. Shares of cryptocurrency exchanges Coinbase (COIN) and Michael Saylor’s MicroStrategy (MSTR) both rose 17% during the day. Large Bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) posted gains of 22% and 15%, respectively.
Bitcoin goal is $58,000
Some market observers had expected Bitcoin to stall and potentially correct to $48,000, but Monday's rally was the last historically significant resistance line ahead of the record high. decisively broke through one of them.
“BTC appears to be finally breaking out of the range it has been in since February 15,” crypto analysis firm Swissbloc said in a Telegram market update on Monday. “Momentum is strong. All sails are up.”
Analysts at SwissBlock added that Bitcoin's next price target is in the range of $57,000-$58,000, after which it will reach new all-time highs.
This move, coupled with the rising Bitcoin price premium on Coinbase compared to other exchanges, suggests there is demand from US investors.
Trading interest in the U.S.-listed spot Bitcoin exchange-traded fund (ETF) was also high, with BlackRock's IBIT posting its largest daily trading volume since its debut, according to TradingView data. However, the NYDIG report notes that ETF trading volume does not necessarily translate into inflows.
Updated (February 26, 20:41 UTC): Update price. Adds trading volume data performance for altcoins, crypto stocks, and Bitcoin ETFs.
