Crypto Market Pushes Against $2.95T Resistance Level

The crypto market is pushing against the $2.95T resistance level, having retreated slightly from a local high of $2.93T. This comes as the market has seen a short-term uptrend since Friday, with cryptocurrencies gaining against steady stock market indices and a strengthening US dollar. The top gainers over the past day include Cardano (+11.1%), The Graph (+7.1%), and Near Protocol (+6.9%), while BAT (-3.9%), Immutable (-2%), and Internet Computer (-1.1%) lagged behind.

Bitcoin briefly touched levels above $87K on Monday morning, only to be met with a sharp surge in selling, reminiscent of similar events on Friday and September 23rd. The price has approached the apex of the triangle formed by horizontal resistance and rising support, setting the stage for increased volatility if it breaks out of this pattern.

Near Protocol has been a standout performer, rising by almost 130% over the last 30 days. The coin's price has returned above $5, near the highs seen since the start of last year, and is well-positioned to reach its 2024 target of around $8 early next year.

QCP Capital suggests that Bitcoin's recent rise is due to inflows of significant capital via spot ETFs ($6.1 billion in August-September), rather than an improvement in the overall financial market environment. This capital inflow could weaken, potentially eroding support for the price.

The US SEC has proposed new rules on the custody of crypto-assets for investment advisers and funds, acknowledging the crypto-asset market's growth into a multi-trillion-dollar asset class that investors are actively seeking access to. Meanwhile, the Independent Community Bankers of America (ICBA) is seeking a court ruling to review the licensing rules for crypto companies, citing concerns that these firms may gain the status and trust associated with banks without meeting comparable requirements for capital, supervision, and deposit insurance.