What is the reason for the growth of the cryptocurrency market today?

The most important factors driving today’s cryptocurrency market growth can be attributed to the following main factors:

Hope for easing US-China trade war tensions
“Short squeeze” in derivatives market with over $540 million in short positions liquidated in the past 24 hours
Positive technical signals after a multi-month downtrend was broken
The cryptocurrency market is bullish today, with its total value increasing by 6.7% in the past 24 hours to around $2.94 trillion. This growth was mainly due to Bitcoin and Ethereum, which increased in price by around 6.4% and 10%, respectively.


US-China trade tensions ease
One of the main drivers of today's rally is the possibility of a reduction in the tariff war between the US and China. According to Bloomberg, Scott Besant (Acting US Treasury Secretary) said on April 22 that the tariff dispute with China is "unsustainable" and raised the possibility of a reduction in tariffs.

Short Liquidation Wave
Another driver of today’s rally was a large wave of short liquidations, which created a powerful “short squeeze.” CoinGlass data shows that over $624 million in crypto positions have been liquidated in the past 24 hours, with $545 million of that coming from short positions. CoinGlass described the event as “the largest short liquidation of the year.”


Technical Signal from Descending Wedge Break
Finally, the technical analysis of Total Market Cap (TOTAL) also confirms the bullish trend of this rally. The TOTAL index has broken out of a multi-month “descending wedge” pattern on the daily chart. This break is a strong bullish signal after retesting the resistance at $2.6 trillion and crossing the 50-day simple moving average at $2.68 trillion.


The technical target for the pattern is now around $3.12 trillion, which is 7.5% above current levels. However, the upside must break through the resistance of the 100- and 200-day simple moving averages between $2.93 and $2.94 trillion to reach this target. The relative strength index (RSI) has also risen to 65 from a low of 30 on April 7, indicating increasing bullish momentum.