The stock market recovery is expected to set off an uptrend for Bitcoin as well.
In the third week of October, 2022, the US equities markets have started out bullish. The S&P 500 index is up by around 2.60%, and the Nasdaq Composite has followed suit to be up by over 3%. This stock market recovery might lead Bitcoin to break out of the $19,000 around price levels it has been stuck in for quite a while now. The bulls are certainly hoping for a rally when BTC does get out of the brief range.
Meanwhile, long-term investors are not keen to sell their holdings at these lower levels, as smaller investors try to take advantage of the lows. Notably, data from Glassnode shows that the number of wallets holding one BTC or more has gone up steeply in 2022.
BTC/USD 7 days price chart
BTC has broken out above its 20-day EMA ($19,430) as of October 18, and the bulls are attempting to take the recovery beyond the 50-day SMA ($19,680). If they succeed, the BTC/USD pair could next face a firm resistance around the $20,400 level, which has been a sturdy barrier since mid-September. A break to the $20,500 levels could signify decreasing selling pressures.
In case the bears succeed in turning the price down, the $18,800 levels last seen in September for the BTC/USD pair might come back into play as a pivotal support.