U.S. equity markets are nearing all-time highs on the hopes that Democrats and Republican will break their current stalemate and strike a deal to release another round of stimulus for American citizens and the small businesses they operate.
While these monetary and fiscal stimulus measures have been proven to boost stock market returns in the short-term, they also add to the massive debt burden facing the U.S. Printing more money from thin air cannot be a permanent solution to every problem and at some point the chickens will come home to roost.
Daily cryptocurrency market performance. Source: Coin360
In the future this debt will become unmanageable and could lead to an economic and currency crisis. Several investors anticipate this and are hedging their risks by loading up on gold and Bitcoin (BTC).
These factors project a bullish view for Bitcoin in the long-term. However, in the short-term, the volatility is likely to remain high until the U.S. presidential elections are over.
Let’s study the charts of the top-10 cryptocurrencies to see whether traders are bullish or bearish in the short-term.
Bitcoin (BTC) turned down from $11,482.44 on Oct. 10, but the bulls held the price above the immediate support at $11,178. This shows strength because the bulls did not wait for a deeper pullback to buy.
BTC/USD daily chart. Source: TradingView
The bulls have pushed the price above the overhead resistance at $11,500. If the BTC/USD pair sustains this rise, a rally to $12,050 will be on the cards.
The moving averages have completed a bullish crossover and the relative strength index has risen above 67, which suggests bulls are in control.
If the momentum picks up and the bulls drive the price above $12,050, the pair could retest $12,460. A breakout of this level may resume the