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(Kitco News) – Bitcoin (BTC) and the broader cryptocurrency market rose in trading on Tuesday following a surprise interest rate decision in Australia, where the country’s central bank bucked the prevailing trend and announced it would raise interest rates by just 25 basis points Week.
This helped spark a second straight bullish day in stock markets, which was further bolstered by a new jobs gauge showing US job vacancies fell by the most in two and a half years in August. This was a welcome sight for the Federal Reserve, which has been trying to curb excessive labor demand in its fight against inflation.
As a result of the positive developments, the S&P, Dow and Nasdaq all ended the day well in the green, up 3.06%, 2.80% and 3.34%, respectively.
Data from TradingView shows that Bitcoin bulls came into effect in the early trading hours on Tuesday, propelling the top crypto from a low of $19,484 to an intraday high of $20,465. The bears attempted to break the building momentum in the afternoon session, but the blow was well defended by the bulls, who managed to push BTC price back above the $20,300 support.
BTC/USD 4 hour chart. Source: TradingView
Noting the tide change in his morning Bitcoin letter, Kitco’s senior technical analyst Jim Wyckoff said that “bulls have gained modest momentum this week and further price gains in the near term are likely to trigger a price uptrend on the daily chart would”.
Now is not the time for bulls to back down; However, as they “have more to do in the short-term to suggest that a price uptrend may continue,” Wyckoff warned.
This sentiment was echoed by cryptocurrency market analyst Pentoshi, who posted the following tweet identifying the $21,700-$22,000 zone as the next major hurdle to clear.
There is still work to be done for $BTC. 21.7-22k is the first important main area
Remember that markets move when people are sidelined
They move up to force you to buy + move down to force you to sell. They force you to act. Why did the price stop moving at prev ath? pic.twitter.com/lsktrSxAXR
— Pentoshi 🐧 (@Pentosh1) October 4, 2022
BTC accumulation increases
While Bitcoin’s price has struggled to generate any momentum over the past 6 months, crypto traders have taken advantage of the rock bottoms by hoarding BTC at the highest rates since 2015.
According to a Twitter post by Ki Young Ju, CEO of crypto analytics platform CryptoQuant, “BTC accumulation levels hit a 7-year high. Bitcoins over 6 months old now occupy 74% of the realized cap. At the recent lows in 2019 and 2015, it was 70% and 77%, respectively.”
Simply put, bitcoins held longer than six months account for 74% of the highest realized crypto cap overall. The last time this metric was higher than it is now was in 2015 when BTC was worth $220. This surge to 77% occurred during the cycle bottom, and each surge in accumulation coincided with a market bottom.
Further confirmation that hodlers have been piling up was provided by crypto market research firm IntoTheBlock, which published the following tweet showing that the number of Bitcoin holders has continued to rise despite the ongoing crypto winter.
The number of #Bitcoin holders is growing in the bear market 📈
Over 42 million addresses are currently holding $BTC, up 4.5 million from a year ago pic.twitter.com/BEx4HjVCeW
— IntoTheBlock (@intotheblock) September 27, 2022
Altcoins are going higher
The altcoin market enjoyed widespread green development on the backdrop of a rising BTC price, with 95% of tokens in the top 200 seeing gains on Tuesday.
Daily performance of the cryptocurrency market. Source: Coin360
Among the biggest notable gainers is Constellation (DAG), which rose 12.86% in price to $0.08555, followed by a 12.75% rise for SwissBorg (CHSB) and a 11.56% rise for Render ( RNDR).
The total cryptocurrency market cap is now $970 billion and Bitcoin’s dominance rate is 40.2%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.
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