Bitcoin increases in value to trade above $22,000; ethereum and avalanche rise

The price of bitcoin increased amid a general risk-on sentiment in the markets, trading above $22,000 for the first time since June 8 and testing the top of the narrow range where it has been trapped for the previous month.

At 10:18 a.m. in New York, the biggest cryptocurrency saw gains of up to 7.5 percent and was trading at $22,082. Coins like Avalanche and Polygon also experienced double-digit rises, and Ether saw a 12 percent increase. With global stocks firmly in the green, the euphoric tone in equity markets was reflected by cryptocurrency's rise.

Since the crypto market crashed in June, there has been a dramatic recovery, with Ether up 47% this month and Polygon more than doubling.

The industry is still plagued by clouds; persistently high inflation is predicted to lead to further monetary tightening globally, and Celsius Network Ltd.'s bankruptcy last week serves as a fresh reminder of possible contagion.

Some market observers claim that the durability of cryptocurrencies in the face of seemingly negative news, such as this week's worse-than-expected US inflation report, adds to signs that the selloff that erased around $2 trillion from digital assets may have peaked.

Marcus Sotiriou, an analyst at GlobalBlock, wrote in a note on Monday that when the market begins to respond favourably to bad news, this is a hint that a temporary bottom may have been reached due to fear.

Any sign that Bitcoin is decisively breaking out of its recent pattern of fluctuating between $19,000 and $22,000 is being watched by traders. Since mid-June, when reports that cryptocurrency lender Celsius Network had blocked withdrawals spurred further panic selling, the token hasn't regularly traded above that range.

According to Marcel Harmann, CEO of THORWallet DEX, "I view the current Bitcoin price spike as an intermediate relief or swing rally with a next resistance level around $25,000, or possibly $28,000."