Bitcoin (BTC) Bounces Back Above $63,000 as Risk-On Sentiment Emerges

Ethereum Name Service (ENS) was one of the best-performing altcoins on Monday as focus shifted to the upcoming ENSv2 upgrade.

Bitcoin price bounced back above $63,000 on Monday as investors shifted their focus to the upcoming ENSv2 upgrade andcartItem], setting the stage for a risk-on environment.

Among the best-performing altcoins on Monday was Ethereum Name Service (ENS - Get Price) as the spotlight turned to the upcoming Ethereum Name Service (ENS) v2 upgrade. LayerZero (ZRO - Get Price), which recently concluded its airdrop, rose to $3.60, up 40% from its lowest point last week.

Among the top meme coin performers this year, Mog Coin price surged to an all-time high of $0.0000021, up over 200% from its lowest point in June. Another standout was BONK (BONK - Get Price), which rose over 32% from its lowest point last month, earning it the title of Coin Of The Week.

Other top-performing altcoins included Dogwifhat (WIF), Immutable X (IMX), Fantom (FTM), and Bittensor (TAO).

Bitcoin, altcoin price recovery took place in a high-volume environment. Data from CoinMarketCap showed a surge in daily volume by over 45% to reach $53 billion, marking its highest point since June 28.

In the absence of any major catalyst to fully explain the rally, a likely factor seems to be the risk-on sentiment among investors following the conclusion of the French election on Sunday.

While Marine Le Pen's party emerged victorious in the election, the win fell short of expectations based on polls.

In the aftermath, the US dollar index (DXY) dropped by 15 basis points, while global stocks experienced an uptick. The French CAC 40 index rose by over 2%, and the German DAX index climbed by 0.70%.

Meanwhile, in the US, futures tied to the Dow Jones and Nasdaq 100 index also showed gains.

Bitcoin price chart still shows ‘dead cat bounce’ riskLayerZero, Mog Coin, Bonk price rally risks turning into a ‘dead cat bounce.'

There is a risk, however, that the rally in LayerZero, Mog Coin, and Bonk price may turn out to be a "dead cat bounce," a scenario where an asset experiencing a prolonged decline stages a brief recovery before resuming the downtrend.

This risk is heightened by the multiple bearish patterns formed by Bitcoin over the past few months. Notably, it formed a double-top pattern at $72,000 last month and has failed to break above this level since March 27.

Bitcoin has also remained below the 50-day and 100-day Exponential Moving Averages (EMA), indicating continued bearish control. Most recently, it has formed a bearish pennant chart pattern.

If Bitcoin fails to hold and drops below the crucial support of $60,000 this week, it may trigger a broader decline. In such an event, altcoins like MOG, BONK, and ZRO are likely to follow suit, resuming their bearish trend since, in most cases, these tokens align with Bitcoin's price movements.

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