Crypto market stages recovery; Bitcoin leads as market cap reclaims $3 trillion

After a terrible October and a similarly disappointing November, the crypto market is finally showing signs of recovery. It’s not just the price, the overall sentiment of the market is improving. 

The total crypto market has once again climbed above the $3 trillion level, establishing a new uptrend. Unlike the other recent rallies, which had large green candlesticks showing intense volatility, this time around, the green candlesticks are shorter, and the rise is consistent. This shows that the new uptrend will sustain longer. 

The last time the total crypto market cap climbed above this level, it hit almost $4 trillion. If history repeats, another spike to those levels is not out of the cards. 

Markets fear less 

The Fear and Greed Index, which gauges the market sentiment, has moved out of the extreme fear zone. The indicator showed 11 on its scale, deep in extreme fear territory during the past week. However, now it shows 20, a good sign that the investor’s perception about the market is slowly changing.

Bitcoin recovers above $90,000

Meanwhile, Bitcoin climbed above the $90,000 level once again after crumbling to $85,000 last week. The flagship coin is showing strength as it recovers from the mid $80,000 range.

The Relative Strength Index (RSI), which was making lower highs, has now broken this pattern, and it has made a new higher high. This reinforces that BTC’s crash is over, and this could be the start of a new rally. 

Priced at $91,000, Bitcoin’s next resistance level is above $100,000. If the bulls capitalize on this good start and keep adding pressure, BTC could reach this six-digit figure in no time. 

On the sidelines, let’s not forget about the US Federal Reserve interest rate cut. The Federal Open Market Committee will gather one last time to decide on rate cuts for 2025 on December 10. According to the CME Group market, there is an 85% chance of a rate cut during the FOMC.

In addition to the rate cut, Donald Trump has a plan to inject $20 trillion into the economy by the end of the year. Given these positive sentiments revolving around the market, the crypto is likely to get better in the coming days.