Bitcoin Rebounds, But Risk-on Sentiment May Be a Trap: LayerZero, Mog Coin, and Bonk Prices Surge

The cryptocurrency market experienced a green wave on Monday, with Bitcoin soaring back above $63,000, fueled by a risk-on sentiment. Ethereum Name Service (ENS), LayerZero, Mog Coin, and Bonk were among the top performers. LayerZero's airdrop spurred a 40% surge, while Mog Coin reached an all-time high, and Bonk also saw significant gains. This rally coincided with a 45% jump in daily trading volume, reaching its highest point since June 28th. However, despite the positive market movement, there's a strong possibility of a dead cat bounce, where prices briefly rebound before continuing their downward trend. Bitcoin's recent price patterns, including a double-top formation at $72,000 and failure to surpass that level since March 27th, indicate a bearish market. Additionally, Bitcoin's position below the 50-day and 100-day EMA suggests bearish dominance. The formation of a bearish pennant chart pattern further reinforces this outlook. If Bitcoin drops below $60,000, altcoins like Mog Coin, Bonk, and LayerZero are likely to follow suit and resume their downtrend.