Crypto Stocks Rally Premarket as Bitcoin Approaches All-Time High

Key Takeaways

• Several key crypto stocks and ETFs have experienced significant gains.
• Bitcoin surged to a near five-month high, driven by potential U.S. election outcomes and positive technical indicators.
• If market sentiment shifts negatively, Bitcoin may find support around $66,200.

As Bitcoin flirts with its highest level in five months, a bullish fervor is sweeping through the crypto market, lifting related stocks in premarket trading and sparking hopes of a broader revival.

Crypto Stocks Rise

Over the past day, several crypto stocks have experienced significant gains.

Key players such as Coinbase Global rose by 2.6%, while Bitfarms led the pack with a 6.1% surge.

MicroStrategy, Riot Platforms, Hut 8, and MARA (Formerly Marathon Digital Holdings) also saw notable increases, with gains ranging from 3.4% to 3.8%.

Additionally, exchange-traded funds (ETFs) with exposure to Bitcoin performed exceptionally well, with the ProShares Bitcoin Strategy ETF up 2.2% and the iShares Bitcoin Trust rising 2.1%.

This uptick across various companies signals a growing optimism within the cryptocurrency market, highlighting a potential resurgence in investor interest.

Bitcoin Close to Record

Bitcoin  surged to a near five-month high on Tuesday, driven by a blend of factors invigorating investor confidence.

Speculation surrounding a potential Republican victory in the upcoming U.S. elections, particularly with Donald Trump’s pro-crypto stance, has fueled optimism in the market.

Additionally, a “golden cross” pattern on Bitcoin‘s price chart indicated a bullish trend, while significant purchases by major investors during Asian trading hours further propelled prices.

Bitcoin reached $71,214.49, reigniting interest in its record high of $73,750 and positively impacting the broader cryptocurrency market. The king of cryptocurrencies is up by 4.5% from yesterday.

Altcoins like Ethereum and Dogecoin are also seeing notable gains. ETH  is up by 4.7% to $2,623.53, while DOGE  is increasing by double-digits—15%—to $0.1645.

What To Expect

Bitcoin’s upward trajectory continues to gain strength, fueled by increasing investor optimism. The cryptocurrency has formed a rising trend channel, indicating a short-term bullish trend.

The price chart’s absence of significant resistance levels further supports this positive momentum.

However, a cautious note is warranted. While the high Relative Strength Index (RSI) above 70 suggests strong bullish sentiment, it can also signal potential overbought conditions. This could lead to a short-term correction or consolidation phase.

If the market sentiment turns negative, the cryptocurrency could find support around the $66,200 level.