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After trading under $20k for almost three weeks in a row, bitcoin (BTC-USD) pushed up and past that psychological threshold as market participants became less risk averse across the board despite worsening economic data and recession risk is increasing.
Bitcoin (BTC-USD), which has changed hands to a limited extent in the past four months or so, has accelerated 4.6% to $20.23K at 2:46 p.m. ET. Ethereum (ETH-USD), the world’s largest altcoin by market cap, has skyrocketed 11.3% to $1.49K. Among other cryptocurrencies that trade deep in the green include cardano (ADA-USD) + 14.1%solana (SOL-USD), + 11.9%polkadot (DOT-USD) + 9.7% and cancel swap (UNI-USD) + 8.6%.
For a purely technical perspective, Seeking Alpha contributor Joe Albano pointed out that bitcoin (BTC-USD) is trading in a descending triangle chart pattern, which means the token is “rolling for a move” possibly to the downside”, but the upside looks attractive.” If BTC tests the former triple bottom support, lower prices are likely to follow. But the opposite will be true if it breaks out of the descending resistance line and sustains above it.
“Validation will come when it crosses the last high in the triangle,” Albano said. In this case, it looks to be the $22,500 level.
Bullish price action occurs when all three US stock index (DJI) (SP500) (COMP.IND) went higher and ended the session with a third win in a row. That was supported by falling Treasury yields (US10Y) (US2Y) as investors continue to doubt that the Federal Reserve is likely to slow the pace of rate hikes after next week’s FOMC meeting. But that’s hard to imagine for some because inflation is still hovering around a 40-year high and well above the Fed’s 2% target.
Of course, crypto-related stocks sank in the blue sea throughout the session, with Hut 8 Mining (HUT) + 18.9%CleanSpark (CLSK) + 19.7%Core Science (CORZ) + 18.5%MicroStrategy (MSTR) + 11.7%Coinbase Global (COIN) + 11.1%Silvergate Capital (SI) + 11.1% and Marathon Digital (MARA) + 13.1% Post the most outstanding benefits compared to companies in the same industry.
Earlier this week, (October 24) Pewter Brandt predicted that bitcoin would bottom at $13k before reaching new record high in 2025.
