Crypto traders are keeping a close eye on Bitcoin's price movements as it hovers above the crucial $70,000 level, with a breach potentially paving the way for a test of the all-time high.

What Happened: Major cryptocurrencies are trading in the green on Monday morning as investor sentiment improves on news of a U.S.-China tariff pause.

Nic Puckrin, founder and investor of Coin Bureau, observed that Bitcoin's rally is reflecting the improving risk appetite as tariff reduction talks between the U.S. and China lower geopolitical friction.

"Bitcoin has shifted back to a risk-on asset," Puckrin stated. "It's once again trading in step with equities and could soon break its all-time high."

However, Puckrin noted that the altcoin rally lacks staying power without significant retail engagement. Despite the hype surrounding exchange-traded funds (ETFs) and the potential for massive capital inflows into Bitcoin, the absence of mainstream interest could limit upside for most non-BTC assets.

"While we've seen a strong rally in altcoins this year, it's worth noting that most of the gains have been driven by leveraged products and ETFs, not direct retail demand," Puckrin added. "This suggests that the current altcoin bull market may not have as much staying power as a bull market that is broadly supported by retail investors."

Bitcoin is currently trading at $70,000, up 0.43% over the past 24 hours.

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At press time, Bitcoin was trading at $70,049, a 0.43% increase over the past 24 hours.

Why It's Important: As the world's leading cryptocurrency, any movement in Bitcoin's price is sure to be closely followed by traders and investors.

A breach of the $70,000 level could open the door for a test of the all-time high of around $78,000, which Bitcoin last hit in early 2024.

A sustained move above the all-time high could set the stage for a substantial rally in Bitcoin's price, potentially setting new highs in the coming months.

However, traders will be keeping an eye on the levels at which Bitcoin's one-day mean reversion signals will activate. According to trader Josh McKenna, these signals will activate above the $110,000 level, suggesting that some consolidation in Bitcoin's price is possible after such gains.

"Bitcoin's one-day mean reversion signals (green = support; red = resistance) will activate at: $0 (already hit) & $110k," McKenna said. "Either way, lots of liquidity to handle any price variance."

Despite the consolidation, McKenna remains bullish on Bitcoin's price prospects, believing that with the strong liquidity tailwinds, new all-time highs are a matter of "when," not "if."

"With Bitcoin's price now above $70k, and Chainlink's price now above $300, we're entering uncharted territory in the crypto markets," McKenna added. "But with the strong liquidity tailwinds, and the current bull market showing no signs of slowing down, it's only a matter of "when," not "if," we'll see new all-time highs."

Read Next: Bitcoin Price Today: Can BTC Hold Key Level To Set Stage For A Run At $100K?

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