Bitcoin Holds Key Support as Large-Cap Tokens Join Rally

The cryptocurrency market has turned green again, but it's unclear whether this is a sustainable recovery or just a bounce. To determine if the market is building momentum, we need to look at three key tests.

Firstly, Bitcoin must hold its buyer-cost support, specifically the $76,350 average cost basis of active investors on Bitfinex. This area marks where many recent buyers stop feeling forced to sell and start sitting back in profit. If Bitcoin can keep attracting buyers above this level, it will give the wider market a better chance of resuming its August move.

Secondly, we need to see large-cap tokens participating in the move. A continuation becomes more credible when gains reach several established crypto sectors rather than remaining concentrated in BTC alone. Seven major tokens have gained more than 3%, including Cardano (+9.3%), Zcash (+5.9%), and Dogecoin (+4.5%).

Lastly, we need to assess the role of leverage in supporting or overwhelming the rally. Short liquidations helped the move travel faster, but open interest rose 10.4% and derivatives volume increased 10.7%. Traders were adding fresh exposure as prices climbed, which can extend momentum but also makes the market more vulnerable if new demand stops arriving.