(Kitco News) - Financial markets started the week off on a positive note Monday after earning season kicked off with promising results and the U.K. performed a 180 on its tax cut plans following last week's market rout.
As a result of improving conditions, the major stock market indices managed to recoup their Friday losses, with the S&P, Dow and Nasdaq finishing the day in the green, up 2.65%, 1.86%, and 3.43%, respectively.
Data from TradingView shows that Bitcoin (BTC) steadily climbed the chart in trading on Monday, increasing 2.7% from a low of $19,160 to an intraday high of $19,680 before pulling back to support at $19,500.
BTC/USD 4-hour chart. Source: TradingView
While the top crypto managed to put on gains for the day, the macro picture remains largely the same as BTC trades near the middle of the range its been stuck in since late August, prompting Kitco senior technical analyst to suggest that it is “Back to the sideways grind” for the market.
“Bulls and bears continue to fight for control, with neither having a decided edge,” Wyckoff said. “That suggests more choppy and sideways trading in the near term.”
DXY shows signs of cracking
The bullish day in the stock market was aided by a pullback in the DXY, which gave back the gains it made last week to trade near 112.08.
This prompted Michaël van de Poppe, founder and CEO of Eight Global, to point out that “slowly, but surely, economic data is getting worse in the United States,” highlighting that “NY Empire Manufacturing was bad today, but also numbers two weeks ago came in worse.”
From a bigger picture perspective, Poppe indicated that this “means that we’re at the end of this run of the DXY and yields,” which led the analyst to suggest that it is “Time for risk-on. Time for Bitcoin.”
As for what comes next for the top crypto, Poppe posted the following tweet and suggested that we could see a significant breakout in one to two weeks.
The plan for #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) October 17, 2022
We'll be having a breakout in 1-2 weeks and a clear breakout above that $19.6K probably activates $22.7K. pic.twitter.com/DN7oTMehRk
Green in the altcoin market
The altcoin market benefited from a positive day for Bitcoin as the top 200 tokens experienced widespread gains, led by a 31.62% gain for Huobi Token (HT).
Daily cryptocurrency market performance. Source: Coin360
Other notable gainers include a 16.3% increase for Polymath (POLY) and a 13.05% gain for Phala (PHA).
The overall cryptocurrency market cap now stands at $934 billion, and Bitcoin’s dominance rate is 40.1%.
