Major Cryptocurrencies Experience Moderate Rally, Leaving Smaller Coins Behind

The cryptocurrency market is witnessing a notable upswing, with major players such as Bitcoin and Ether making significant gains alongside the US equities market, as oil prices decrease due to reduced war premium. However, this growth is limited to a select few, with broader market participation remaining elusive. Bitcoin and Ether have seen a 5% and 9% increase, respectively, over the past 24 hours, driven by sustained demand from digital asset treasury firms and traders seeking bullish exposure through futures. The perpetual funding rates, although positive, remain below 10% for both assets, indicating a healthy demand for bullish bets without signs of overheating. Analysts remain optimistic but are waiting for Bitcoin to establish a strong foothold above the $74,000-$75,000 range. A victory for the bulls in this range could pave the way for Bitcoin to reach $87,000-$90,000, where the 200-day moving average and November-January support are located. However, before surpassing $90,000, Bitcoin may require a period of consolidation. Select altcoins and memecoins continue to rally, but the broader market has yet to fully participate in the Bitcoin rally, as evident from traditional metrics measuring market breadth. The dollar index has hit five-week lows as war fears ease, supporting the bullish case in risk assets.