US Stocks Rally Across the Board as Crypto Stocks Join the Upswing
US equity markets kicked off the trading week with broad-based gains, as all three major indexes closed in positive territory. The rally was accompanied by strength in cryptocurrency-linked stocks, reflecting renewed risk appetite among investors. According to Bybit data, the Dow Jones Industrial Average rose 0.89%, the Nasdaq Composite gained 0.79%, and the S&P 500 advanced 0.68% .
Tech Leads the Way, But Gains Are Broad-Based
The Nasdaq’s 0.79% advance was driven by strength in mega-cap technology names, but the rally was notably broad-based, with the Dow and S&P 500 also posting solid gains. The 4-hour chart of the Nasdaq 100 reveals a constructive technical picture, with price holding above the 24,200 level and the 9-period exponential moving average (EMA) providing dynamic support at 24,210.7. The linear regression channel indicates that the index remains in a well-defined uptrend since early March, with the current consolidation phase potentially setting the stage for further upside .
Volume on the Nasdaq chart registered 1.44K, reflecting steady participation in the session’s advance. The index’s ability to hold above the key 24,250 level suggests that buyers remain in control, with the next resistance zone near 24,400-24,600 coming into focus .
Crypto Stocks Join the Rally
The positive sentiment extended to cryptocurrency-related equities, which posted solid gains alongside the broader market. Coinbase (COIN) closed up 1.35%, while Robinhood (HOOD) outperformed with a 2.04% advance. The strength in crypto stocks reflects growing investor confidence in the digital asset ecosystem, particularly as Bitcoin holds steady above the $70,000 level .
The correlation between crypto stocks and the broader equity market has strengthened in recent months, with both asset classes responding to similar macro drivers. Monday’s session saw that relationship play out clearly, as risk appetite returned across the board .
Bitcoin Holds Above $70,000 as Momentum Builds
The 1-hour chart of Bitcoin (BTC/USDT) shows the digital asset consolidating near the $70,500 level after a brief pullback. Price traded as high as $70,810 and as low as $70,404, closing the period at $70,470, a modest decline of 0.44% on the hour .
Technical indicators on the 1-hour timeframe point to building momentum. The Relative Strength Index (RSI) stands at 55.74, comfortably above the neutral 50 level, with the previous reading at 62.17 indicating that bullish momentum, while cooling slightly, remains intact. The consolidation above $70,400 suggests that buyers are defending the level, with the next upside target near $71,000 .
Volume for the period was 133.55, indicating steady but not excessive activity, a sign that the consolidation phase may resolve with a decisive move in either direction in the coming sessions .
What’s Driving the Rally?
Several factors converged to support Monday’s broad market advance:
1. Easing Rate Fears: While markets continue to price in a possible Fed rate hike later this year, recent economic data has shown signs of cooling inflation, providing some relief to equity investors .
2. Resilient Tech Earnings: Recent earnings reports from major technology companies have exceeded expectations, reinforcing confidence in the sector that leads both the Nasdaq and crypto-related equities .
3. Bitcoin’s Stability: The ability of Bitcoin to hold above the psychological $70,000 level has provided a tailwind for crypto stocks, which tend to amplify Bitcoin’s price movements .
4. Renewed Risk Appetite: The simultaneous strength across equities, crypto stocks, and Bitcoin points to a broader improvement in investor sentiment, with market participants willing to add risk exposure after a period of uncertainty .
Outlook for the Week Ahead
The broad-based rally sets a positive tone for the remainder of the trading week. For the Nasdaq, the key levels to watch are the 24,200 support zone and the 24,400-24,600 resistance area. A break above the upper end of this range would confirm the continuation of the uptrend .
For Bitcoin, the consolidation above $70,400 suggests that bulls are building a base for the next leg higher. A sustained move above $71,000 would likely accelerate buying interest, potentially targeting the recent highs near $71,500. Conversely, a break below $70,000 could invite short-term selling pressure, though the RSI’s position above 50 suggests that downside may be limited .
For crypto stocks, the performance of Coinbase and Robinhood will likely remain tied to both Bitcoin’s price action and broader equity market sentiment. The 1.35% and 2.04% gains, respectively, suggest that investors are increasingly viewing these companies as leveraged plays on the digital asset ecosystem .
Sources: Bybit, TradingView, Nasdaq, Dow Jones, S&P 500.
