Bitcoin Crosses $110,000, Ethereum And Dogecoin Also Surge Amid US-China Trade Optimism: Analyst Says ETH Building Up 'Next Big Breakout'

Leading cryptocurrencies rallied Monday as trade talks between the U.S. and Chinese officials stoked investor optimism.

What Happened: Bitcoin spiked above $110,000 after a two-week gap, with trading volumes jumping 55% to $58.45 billion. 

Ethereum recorded a steeper rise, rising more than 8% to surpass $2,700. Trading volume nearly doubled to $22.32 billion in the last 24 hours.

As of this writing, Bitcoin held a 63.6% market share, while Ethereum’s dominance increased to 9.5%.

Over $182 million was liquidated from the cryptocurrency market in the last 4 hours and nearly $438 million in the 24-hour period. About $380 million in short positions were erased 

Derivatives traders gave a thumbs up to the rally. Bitcoin's Open Interest popped 7.04% in the last 24 hours, while Ethereum's Open Interest jumped over 12% in the last 24 hours.

The "Greed" sentiment surged from 62 to 71 in the last 24 hours, according to the Crypto Fear & Greed Index, indicating strong buying pressure.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization surged 4.10% to $3.44 trillion in the last 24 hours.

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Major stock indexes edged higher Monday. The S&P 500  eked out a modest gain of 0.09% to close at 6,005.88. The tech-heavy Nasdaq Composite rose 0.31% to finish at 19,591.24. The Dow Jones Industrial Average was mostly flat, losing 1.11 points to close at 42,761.76. 

The movement comes as the U.S. and China resumed trade talks in London, which will likely also focus on rare earth minerals. The talks aim to address the mounting tensions that have arisen since the 90-day tariff truce was agreed upon in Geneva in May.

See More: Best Cryptocurrency Scanners

Analyst Notes: On-chain analytics firm Santiment noted a sharp surge in FOMO among retail traders as Bitcoin rallied.

"Now, they are showing signs of flooding back in with the 2nd largest spike in FOMO in the past 2 weeks. Historically, markets will move in the opposite direction of the retail crowd’s expectations," Santiment warned.

Widely followed cryptocurrency analyst Michaël van de Poppe identified $2,700-2,750 as a "strong" resistance area, and if ETH manages to break through, the next “big surge” may be imminent.

"It’s pretty normal to have a correction/consolidation after a 50% upwards move on the price, the longer this consolidation takes, the heavier the breakout upwards will be," the analyst added.

Photo Courtesy: Paopano on Shutterstock.com

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