The United States equities markets have made a bullish start to the new week. The S&P 500 is up about 2.60% and the Nasdaq Composite has rallied more than 3%. This indicates that the markets have shrugged off September's high inflation reading and shifted focus onto the third-quarter earnings.
The stock market’s recovery could pave the way for Bitcoin (BTC) to break out of the range it has been stuck in for the past several days. A positive sign for the bulls is that the amount of Bitcoin held in cold storage or lost has risen to a five-year high, according to Glassnode data.
While long-term investors do not seem to be in the mood to sell their holdings at lower levels, smaller investors appear to be making the most of the depressed prices. Glassnode data shows that the number of wallets holding one whole Bitcoin or more has risen sharply in 2022.
What are the levels to watch on the upside that could signal the start of a sustained recovery in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin broke above the 20-day exponential moving average ($19,410) on Oct. 17 and the bulls are trying to extend the recovery above the zone between the 50-day simple moving average ($19,691) and the downtrend line.
If they succeed, the BTC/USDT pair could rise to the stiff resistance at $20,500. This level has acted as a strong barrier since Sept. 14. Therefore, a break and close above $20,500 could indicate that the selling pressure could be reducing. The pair could then sprint to $22,800 as there is no major resistance in between.
This positive view could be invalidated in the near term if the price turns down from the downtrend line and plummets below $18,843. Such a move will indicate that
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