Bitcoin, Ethereum Inch Higher as Tech Stocks Surge: BTC Could Hit $138K Before Correction

Leading cryptocurrencies inched higher Monday, coinciding with a surge in tech stocks.

Cryptocurrency buffs will be keeping a close eye on the movements of leading digital assets on Monday, with the market exhibiting a positive trend. This coincides with a broader surge in the tech sector, as evident in the gains posted by the Nasdaq Composite.

The world's apex cryptocurrency, Bitcoin (CRYPTO: BTC), displayed choppy movement on Monday, oscillating between $92,000 and $89,000. The leading digital asset encountered resistance at the $93,000 level last week, leading to a swift decline.

As of Monday morning, BTC was trading at an intraday low of $89,122. The apex cryptocurrency is now down 1.04% over the past 24 hours.

However, the losses were largely limited on Monday, with Bitcoin trading relatively flat. This comes as a stark contrast to the gains posted by tech stocks on Monday, with the Nasdaq Composite opening up higher.

The tech rally was largely driven by a 5.62% surge in shares of EV juggernaut Tesla (NASDAQ:TSLA) amid reports suggesting that the upcoming regulatory framework under Trump might ease mandates for self-driving vehicles.

Also impacting the tech sector on Monday were reports that Nvidia (NASDAQ:NVDA) is set to announce its quarterly earnings on Wednesday.

Meanwhile, several cryptocurrency traders were liquidated in the past 24 hours, with the total liquidations reaching an impressive $329.61 million. Of this staggering amount, over $200 million were lost on upside bets.

This liquidation spree largely affected Binance, where traders faced the highest liquidation total at $223.23 million. FTX traders also faced significant losses, with a total of $63.19 million in liquidations.

On the derivatives front, the Open Interest (OI) in Bitcoin futures rose by 2% in the last 24 hours, indicating sustained speculative interest in the market.

Moreover, the number of traders holding Bitcoin long positions climbed considerably over the previous 24 hours, signaling expectations that the rally will resume.

In other cryptocurrency news, the global cryptocurrency market capitalization stood at $3.08 trillion, rising 1.84% in the last 24 hours.

Ali Martinez, a well-known cryptocurrency analyst, used historical trajectories to predict Bitcoin's next moves before a significant correction.

“During the 2017 bull market, Bitcoin surged 156% past its previous all-time high before the first major correction of -39%. In 2020, BTC rose 121% before a -32% correction,” Martinez stated.

Should history repeat, Bitcoin could reach at least $138,000 before experiencing “the first major pullback,” the analyst added.

Popular on-chain analytics firm CryptoQuant said that Bitcoin has "room" for further growth based on the reading of the Short Term Holders SOPR indicator.

The SOPR, combined with the 30-day moving average (30d MA), revealed that short-term holders are taking moderate profits, with no signs of excessive euphoria.

“Currently, the indicator remains in the middle region, far from the Extreme Greed range, indicating that the asset still has room to continue rising before reaching a possible market top,” CryptoQuant noted.

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