Bitcoin (BTC) has made a strong comeback in the month of July and is on track to post its best monthly gains since October 2021. The strong recovery of Bitcoin and several altcoins brought the Crypto Fear and Greed Index to 42/100 on Jan 30. July. its highest level since April 6.

Investors appear to be making the most of Bitcoin’s depressed levels. Data from on-chain analytics firm Glassnode shows that Bitcoin in exchange wallets dropped to 2.4 million Bitcoin in July, down from March 2020 levels of 3.15 million Bitcoin. This has sent the metric to its lowest level since July 2018.

Daily view of crypto market data. Font: Coin360

Bloomberg Intelligence senior commodity strategist Mike McGlone highlighted that the US Federal Reserve’s indication to consider rate hikes on a “meeting-by-meeting” basis may set the stage for Bitcoin to outperform most assets. He said that Bitcoin’s “risk versus reward skewed favorably for one of the biggest bull markets in history.”

Could Bitcoin extend its near-term rally and could that trigger buying in select altcoins? Let’s study the charts of the top 5 cryptocurrencies that may outperform in the short term.