The price of Bitcoin has climbed nearly 2% over the past 24 hours to around $21,300. The largest digital asset has marched higher over the past week, surging out of the $16,500-to-$17,000 trading range that has dominated for the past month and topping the key $20,000 level over the weekend. Bitcoin is now trading at the highest level since early November 2022, before the bankruptcy of FTX rocked markets.

“Bitcoin climbs higher after the weekend and recovers $21,000, recovering the loss caused by the FTX shock to test the November high at $21,500,” said Yuya Hasegawa, an analyst at crypto exchange Bitbank. “Although its momentum has somewhat subdued compared to last week, possibly due to the holiday…it could break out from November high if Wednesday’s U.S. producer price index (PPI) matches market expectations.”

Indeed, despite the recent rally—on seemingly few fundamental factors—Bitcoin and its peers are likely to take significant cues from the stock market and track the Dow Jones Industrial Average and S&P 500. Cryptos and equities became closely linked amid the tough macro backdrop of high inflation, rising interest rates, and recession risks over the past year, with PPI inflation data looming later in the week as a key catalyst.

Investors are hoping that indicators continue to show inflation cooling, which should allow the Federal Reserve to ease back from its ultra-aggressive monetary policy.

But while macro continues to be critical for broader demand for risk-sensitive assets, there are technical market factors in crypto that analysts are watching amid Bitcoin’s eye-popping rally.

“The minor breakout is a positive, but short-term overbought conditions have returned…so we think a neutral short-term bias is prudent,” said Katie Stockton, managing partner at technical research group Fairlead Strategies. “If resistance near $21,500 is cleared, it would mark a more meaningful shift, suggesting the downtrend has lost hold while putting next resistance at the August high around $25,200.” 

However, Stockton noted that a key technical indicator is on pace to flash overbought “sell” signals later this week, “which we see as a reason not to chase the rally.”

Beyond Bitcoin, EtherETHUSD –0.37%  —the second-largest crypto—rose more than 2.5% to above $1,575. Smaller cryptos or altcoins were also strong, with CardanoADAUSD –1.36%  up 2% and Polygon 1% higher. Memecoins were more mixed, with DogecoinDOGEUSD +2.49%  near flat Shiba InuSHIBUSD +13.44%  rising 2%.