The week has started in the green, as the markets pull away from the post FTX contagion.

The global crypto market cap has increased by 1.76% in the last 24 hours at $869.73 Billion. The total crypto market volume over the last 24 hours was spotted at $35.19 Billion at the time of writing, increasing by 13.90%. The positive performance of leading cryptocurrencies drove today’s rally in the crypto market. Bitcoin and Ethereum were up 1.61% and 2.78% at $17,310.73 and $1,296.17, respectively, suggesting the bulls were gaining more power.

BTC and ETH’s performance suggests that the worst from FTX's collapse may be behind us. This recovery suggests that the height of the fear cycle has faded. Therefore, crypto investors may now focus on the improved macro backdrop and the risk reset in traditional markets.

One overlooked factor in this rise is the performance of the US Dollar and its index (DXY). As the dollar declines, it’s helped riskier assets such cryptos to keep their heads above very choppy waters for the moment.

In recent weeks, Bitcoin and other cryptocurrencies appear to have decoupled from macroeconomic developments and traditional markets. This is interesting, as investors have been reassessing their commitment to the hawkish US Federal Reserve (Fed) trades in recent weeks and piling back into risk assets, except bitcoin. We can attribute this to an ongoing peak inflation narrative and the Fed Chairman hinting at more moderate interest rate hikes from December.

Today,  investors will be monitoring US economic indicators including factory orders and the all-important ISM Non-Manufacturing PMI. Following the crypto market’s sensitivity to last week’s ISM Manufacturing PMI, we can expect more influence from the Non-Manufacturing PMI. Weak numbers may support a less hawkish Fed but would also fuel fears of a US economic recession.

Bitcoin (BTC) had a calm weekend in which it stood at around the $17,000 mark. This came following a volatile working week, which saw BTC dipping to $16,000 before pumping to a two-week high of $17,250.

Last week, Bitcoin responded positively to Fed Chair Jerome Powell's speech, in which he stated that the Fed would likely raise interest rates 50 basis points (bps) instead of continuing its current diet of 75 bps increases. Despite this, the correlation between Bitcoin and equity markets seem to be weakening in recent weeks - investors will keep monitoring this as macroeconomic indicators surface.

Despite retracing by a few hundred dollars since then, BTC still sits north of $17,000. Its market capitalization has gone above $330 billion, while its dominance over the altcoins stands tight at 38.3%.

What you should know

The BTC/USD pair has successfully broken through the $17,250 barrier, breaking through a narrow trading range of $16,800 to $17,250. Bullish traders are already looking forward to the next resistance level of $17,650, and a break above this could expose BTC to $18,000.

Ether (ETH) has remained steadfast near $1,300, up about 3%. The top altcoin is trading bullish above the $1,250 psychological level, and it is now trading bearish above and below the $1,300 psychological level.

Investors are keeping an eye on the $1,300 level, which is likely to act as a pivot point today. The ETH/USD pair could gain bullish momentum if it’s able to settle above the $1,300 resistance zone.

What you should know

It should be noted that Ether's price had outperformed bitcoin over the previous 10 days, increasing 15.4% versus BTC's 7.7% rise.

Analysts have opined that a crossover of the ETH/BTC 10-day moving average above the 100-day moving average is often a bullish sign, although he added that the recent sample size is still too small to come to a conclusion.

Binance Coin has neared $300 price point following a minor daily rise of 2%. Ripple, Dogecoin, Cardano, Polygon, Polkadot, and OKB have also painted insignificant gains from the larger-cap alts.

Litecoin and Shiba Inu have also surged with increases of 8.5% and 5%, respectively. CRO, ICP, and FLOW are up by between 5% and 9%.

Axie Infinity’s native cryptocurrency has skyrocketed by over 20% on a daily scale. As a result, AXS trades well above $8.