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 m
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.
BTC/USDT
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 bears continue to sell at higher levels. The pair could then drop to the strong support zone between $18,125 and $17,622.
ETH/USDT
Ether’s (ETH) recovery has reached the breakdown level from the triangle. The 20-day EMA ($1,323) is located close to this level hence the bears are expected to defend the level aggressively.
If the price turns down from the current level and breaks below $1,263, the ETH/USDT pair could retest the Oct. 13 intraday low at $1,190. A break below this level could pull the pair to the support line of the descending channel.
On the contrary, if buyers drive the price above the overhead resistance at the 20-day EMA, the pair could rise to the downtrend line of the channel. This is an important obstacle for the bulls to overcome if they want to signal a potential trend change.
BNB/USDT
BNB (BNB) has been consolidating between $258 and $300 for the past several days. The bulls are trying to push the price above the moving averages on Oct. 17.
If they can pull it off, the BNB/USDT pair could attempt a rally to the resistance of the range at $300. The bears are likely to defend this level with all their might. A strong rejection at this level will indicate that the pair may remain stuck inside the range for a while.
The bears will have to sink the price below $258 to gain the upper hand. If they do that, the pair could decline to the next support at $216. Contrarily, if buyers propel the price above $300, the pair could rise to $338.
XRP/USDT
The price action of the past few days has formed a large symmetrical triangle in XRP (XRP). Buyers tried to push the price toward the resistance line of the triangle on Oct. 14 but the long wick on the candlestick shows aggressive selling at higher levels.
If the price sustains below the 20-day EMA ($0.47), the XRP/USDT pair could slide to the support line of the triangle. This level could attract buyers and a strong rebound off it will suggest that the pair may continue to trade inside the triangle. On the other hand, a break below the support line could sink the pair to $0.41.
Trading inside a triangle is usually random and volatile. Although the triangle usually acts as a continuation pattern, it is better to wait for the price to break above the triangle before placing large bets.
ADA/USDT
Cardano (ADA) has formed a falling wedge pattern. The price bounced off the support line of the wedge on Oct. 13 and the bulls are attempting to push the price to the 20-day EMA ($0.40).
In a downtrend, the bears try to vigorously defend the 20-day EMA. If the price turns down from this resistance, the ADA/USDT pair could again drop to the support line. The downsloping moving averages and the RSI in the oversold territory indicate that bears are in control.
To gain the upper hand in the near term, the buyers will have to push the price above the 20-day EMA. The pair could thereafter reach the downtrend line. This level could act as a strong resistance but if bulls push the price above it,…
cointelegraph.com