Bitcoin Rally Could Be Short-Lived

Bitcoin rose above $59,000 in the early hours of the morning and has managed to recover after remaining below $54,000 earlier in the week. Markus Thielen, founder of 10x Research, said the rally could see BTC reclaim $60,000, but it would be short-lived. “The $55,000-$56,000 range provides a baseline from a technical analysis perspective. However, given the medium-term technical damage, we do not expect more than a short-term tactical countertrend rally,” Thielen wrote in a note shared with CoinDesk. Bitcoin is currently trading just below $58,500, up 1.7% in the past 24 hours. The digital asset market as measured by the CoinDesk 20 Index is up about 1.65%.

TIA, the native cryptocurrency of data availability blockchain network Celestia, has surged 25% to $7.30 this week, posting the best performance among the top 100 digital assets by market cap. Investors appear skeptical about the continued price rally and are selling perpetual futures tied to the cryptocurrency, according to funding rates tracked by CoinGlass. Average funding rates on exchanges turned negative over the weekend, falling to 0.1231%, levels last seen in January. In other words, the bias for bearish bets has been evident for six months.

Brokerage firm Bernstein said bitcoin miners are an attractive option for partnerships to help build AI data centers due to their available power sources and operating capabilities. Recent AI deals, including Core Scientific’s (CORZ) 12-year deal with CoreWeave and Coatue Management’s $150 million investment in Hut 8 (HUT), have been major catalysts for the sector, the report said. Bernstein initiated coverage of mining company Iris Energy (IREN), which has an outperform rating and a $26 price target. The broker also initiated coverage of Core Scientific with an outperform rating and a $17 target. CORZ and IREN are up around 3.5% and 6.5%, respectively, in pre-market trading.

The chart shows the top 10 meme coins by market cap. Solana-based MONK replaces dogwifwhat (WIF) as the fourth-largest meme coin. BONK, which has overtaken WIF by market cap, is offering to burn 84 billion coins on Tuesday. Source: Coingecko