These altcoins are making gains as Bitcoin price continues to trade in a range of tension.
US stock markets got off to a bullish start to the new week. The S&P 500 rose 2.60% and the Nasdaq Composite rose more than 3%. This shows that markets have shrugged off the high inflation reading for September and shifted focus to third quarter earnings.
Stock Market Recovery Could Pave Way for Bitcoin
to leave the area that has been maintained in recent days. A positive sign for bulls is that the amount of bitcoin held or lost in cold storage has risen to a five-year high, according to data from Glassnode.
Cryptocurrency market daily performance. Source: Coin360
While long-term investors don’t seem to be in the mood to sell their holdings at lower levels, smaller investors seem to be making prices depressed. Data from Glassnode shows that the number of wallets with a full bitcoin or more will rise 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.
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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 area between the 50-day simple moving average ($19,691) and the downtrend line. .
BTC/USDT daily chart. Source: TradingView
If successful, the BTC/USDT pair can rally to the strong resistance at $20,500. This level has been a strong barrier since September 14. Therefore, a break above $20,500 could indicate that the selling pressure could be reduced. Afterwards, the pair could quickly rally to $22,800 as there is no major resistance in the middle.
This positive view could be invalidated in the short term if the price breaks the downtrend line and falls below $18,843. Such a move will indicate that the bears will continue to sell at higher levels. The pair could then drop to the strong support zone between $18,125 and $17,622.
The recovery has reached the breakout level of the triangle. The 20-day exponential moving average ($1,323) is close to this level. Therefore, the bears are expected to defend the level aggressively.
ETH/USDT daily chart. Source: TradingView
If the price turns down from the current level and drops below $1,263, the ETH/USDT pair can retest the intraday low of Oct. 13 at $1,190. A break below this level could take the pair to the support line of the descending channel.
Conversely, if the buyers push the price above the overhead resistance at the 20-day EMA, the pair can rally to the downtrend line of the channel. This is a major hurdle for the bulls to overcome if they want to reverse a potential trend.
has consolidated between $258 and $300 in the last few days. The bulls will try to push the price above the moving averages on Oct. 17.
BNB/USDT daily chart. Source: TradingView
If they can pull it off, the BNB/USDT pair can attempt a rally against the $300 range resistance. The Bears will probably defend this level with all their might. A strong rejection at this level indicates that the pair will remain range bound for some time.
The bears need to sink the price below $258 to gain an advantage. If they do, the pair could reject the next support at $216. Conversely, if the buyers push the price above $300, the pair could rally to $338.
The price action of the past few days has formed a large symmetrical triangle for XRP
for 0.35 US dollars
. The buyers tried to push the price to the resistance line of the triangle on Oct 14, but the long wick of the candle indicates aggressive selling at higher levels.
The chart of changes in XRP and the US dollar is constantly updated. Source: TradingView
If the price sustains below the 20-day EMA ($0.47), the XRP/USDT pair can slide towards the support line of the triangle. This level could attract buyers, and a strong bounce would suggest that the pair may continue to trade in the triangle. On the other hand, a break below the support line could see the pair drop to $0.41.
Trading on a triangle is usually random and vo