The cryptocurrency market has opened the new week bullish. This is the first time it has done so in roughly five weeks, as the bearish trend had engulfed the market in recent weeks.
Bitcoin, the leading cryptocurrency by market cap, has reclaimed the $106k level after rallying by more than 4% in the last 24 hours. It could now rally higher as the bullish trend in the market grows stronger.
BTC reclaims $106k on Trump tariff dividend
Bitcoin has added over 4% to its value in the last 24 hours and is currently trading above $106,400 per coin.
The positive performance comes after President Trump announced on Truth Social that a direct tariff dividend of “at least” $2,000 will be paid out to most Americans.
He added that the United States is currently generating trillions of dollars in tariffs and said the funds would both reduce the country’s $37 trillion national debt and finance the dividend.
The news saw Bitcoin and other leading cryptocurrencies rally higher as investors anticipate the dividends would be used to purchase risk-based assets, similar to the Stimulus Checks received by Americans during the Coronavirus pandemic.
Bitcoin’s rally also saw altcoins record excellent gains over the weekend. Ether is trading above $3,600 after adding 6% to its value, while XRP leads the pack with an 11% surge.
Binance’s BNB has maintained its value above $1k despite adding only 1%, while Solana, Cardano, and Dogecoin are all up 6% or more in the last 24 hours.
Thanks to the ongoing rally, the total cryptocurrency market cap has hit $3.57 trillion and could reclaim $4 trillion if the bullish recovery continues.
BTC targets $110k as technicals improve
The BTC/USD daily chart remains bearish and efficient despite Bitcoin performing excellently over the weekend. The market has shifted momentum in recent days and could rally higher in the near term.
The Relative Strength Index (RSI) on the daily chart reads 46, close to the neutral 50, indicating that the recent bearish momentum is fading.
The Moving Average Convergence Divergence (MACD) lines are also close to the neutral zone, suggesting a growing bullish bias.
If the recovery continues, Bitcoin could rally towards the next daily resistance level at $110,413 over the next few hours or days.
However, this rally depends on Bitcoin closing the Monday candle above $104,581. An extended bullish run would see BTC reclaim the 112k resistance level.
On the flipside, failure to close above the $104k matrix could see Bitcoin retrace towards the $102k support level.
The recent support level at the 50% Fibonacci retracement of $100,353 could hold once again, unless the market experiences a massive selling pressure.
Overall, the market trend has switched bullish, and Bitcoin could rally higher in the near term.
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