Strong rally for Bitcoin´s price back to $20,000 and Ethereum at 10-day high

The cryptocurrency market has seen significant rises in the last 24 hours, with Bitcoin, Ethereum, Solana and Polkadot leading the way. The price of the main token by market capitalization has regained $20,000 for the first time in a week and is up 6% from the previous day, while Ether - as the Ethereum network unit is also called - is up by the same percentage to almost $1,400, a 10-day high. As for other 'altcoins', the rise is 7% and the total capitalization gains are almost $70 billion since last week.

Experts highlight that the surprising move comes despite the fact that the stock markets continue with their falls, especially Wall Street, so they point out that the correlation of cryptoassets with the stocks could be coming to an end. Coinbase Research maintains that digital currencies behave closely to tech stocks and the tech-oriented Nasdaq. Prior to 2020, there was no correlation between the two. For Bitcoin to function as a hedge against inflation, it must perform consistently despite markets going through sell-offs.

The pause in the dollar rally is also a reason for the strong performance of 'cryptos'. 'Cryptoinfluencer' Kevin Svenson believes Bitcoin bulls expect the stock market to recover as well. Otherwise, 'cryptos' are doomed to fall again. Other experts, such as Craig Erlam, analyst at Oanda, stress that the resilience of the cryptocurrency market despite global pessimism points to further rises, with major support at $17,500 - $18,500.

As for Ethereum, technical analysis points to the fact that it needs to break above the 20-day moving average around $1,425 to signal a trend reversal. Also, the token is in the process of breaking a descending resistance line that was in place since September 17. The main resistance zone would be at $1,440.

Another bullish indicator for the smart contract token is in the options market. Since Ethereum´s merge went live on September 15, options traders had a bullish outlook for Ether´s future price. This can be clearly seen by the volume of call options, which climbed to more than $3.5 million as of Monday. This is a more than threefold increase from the March lows of $1 million.