The United States legislators in the House and Senate came to a temporary agreement on Sep. 30 and averted a government shutdown for 45 days. This news could have acted as a catalyst for Bitcoin’s (BTC) sharp rally on Oct. 1. Additionally, the historically strong performance of Bitcoin in October could have boosted sentiment further.
The U.S. stock markets are also in a sweet spot in October. Data from the Stock Trader’s Almanac shows that the S&P 500 Index (SPX) has risen by an average of 0.9% in October, between 1950 and 2021. However, it does not mean that the bulls can be carefree because the stock market weathered one of its worst declines in the Black Monday crash in October 1987.
While a short-term up-move is possible in the cryptocurrency markets, it is unlikely to start a runaway rally. Higher levels are likely to witness profit-booking as the skyrocketing U.S. dollar index (DXY) could keep the bulls on the edge of their seats.
What are the important overhead resistance levels in Bitcoin and altcoins that may attract sellers? Let’s analyze the charts to find out.
The S&P 500 Index plunged below the formidable support at 4,325 on Sep. 22. That completed a bearish head and shoulders pattern, indicating the start of a downward move.
Usually, the price turns around and retests the breakdown level, which in this case is 4,325. That happened on Sep. 29. The neckline of the setup is likely to witness a tough battle between the bulls and the bears.
If the price turns down and breaks below 4,238, it will indicate that bears are in control. That could accelerate selling and the index may dive to the pattern target of 4,043.
Any recovery attempt is likely to face selling at 4,325 and then at the 20-day exponential moving average
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