Bitcoin (BTC) is trying to close the week above $62,500, well above the intra-week low of just under $60,000. This suggests buying at lower levels. Although the start to October, generally the strongest month of the year, has been slow, analysts expect things could pick up going forward.
One positive for the cryptocurrency markets is that the CME Group’s FedWatch Tool is pricing in a 97% probability of the Federal Reserve cutting rates by 25 basis point in their Nov. 7 meeting. Expectations are that a rate cut would boost a risk-on sentiment.
Crypto market data daily view. Source: Coin360
Another possible trigger for a recovery could be the reduction in Bitcoin held on centralized exchanges. According to CryptoQuant data, centralized exchanges hold more than 2.8 million Bitcoin, the lowest number since November 2018. The drop in the balance reduces the available liquidity, and such occurrences are sometimes followed by bullish price movements.
Could a recovery in Bitcoin act as a catalyst for an altcoin recovery? Let’s study the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin bounced off the 50-day simple moving average ($60,589) on Oct. 4, indicating that the bulls are trying to form a higher low.
BTC/USDT daily chart. Source: TradingView
If buyers maintain the price above the 20-day exponential moving average ($62,237), the momentum could pick up, and the BTC/UDST pair could jump to $66,500. This level may attract sellers, but the rally may extend to $70,000 if buyers bulldoze their way through.
If bears want to prevent the upside, they will have to swiftly drag the price below the 50-day SMA. If they manage to do that, the pair could plummet to $57,500 and later to the crucial support at $54,000.
BTC/USDT 4-hour chart. Source: TradingView
The bulls successfully defended the 20-EMA on the 4-hour chart. The relative strength index (RSI) has jumped into the positive territory, indicating that the momentum has turned positive. If the price closes above the 50-SMA, the likelihood of a rally to $65,000 increases.
On the contrary, if the price turns down and breaks below the…
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