Bitcoin price rises to $20,420 as Treasury yields fall
Editor’s Note: With so much market volatility, stay tuned for daily news! Get caught up in minutes with our quick summary of today’s must-read news and expert opinions. Sign up here!
(Kitco News) – The cryptocurrency market experienced a mid-day rally after comments from the Fed hinting at the possibility of an intervention in the US Treasury market led to a 15 basis point decline in the 10-year Treasury note to 4.09%.
And it wasn’t just the crypto market that caught a bid following the Fed’s comments, as traditional markets also edged higher, capping a third straight day of gains for the Dow, Nasdaq and S&P 500.
Data provided by TradingView shows that Bitcoin (BTC) underwent a surge in activity near midday that drove the top crypto to a daily high of $20,420 before profit-taking saw it pull back to support near $20,100.
BTC/USD 4-hour chart. Source: TradingView
Before the midday rally, Kitco senior technical analyst Jim Wyckoff noted that bulls had helped bring more stability to prices “by moving them into a sideways trading range.”
The strength of the technical support levels found just below the previous price of $19,300 “suggests that a market bottom is in place,” Wyckoff said, but warned that “bulls will need to show renewed strength soon to produce another price uptrend on the daily chart .”
It looks like bulls got the message as they managed to trigger a 5.6% intraday rally in the price of BTC and are now looking to gather their strength before pushing higher.
#Bitcoin breaks to $20K. #Ethereum up 10% on the day.
Big move, as returns have fallen and $DXY shows weakness.
The tables are turning, it is definitely time for significant relief across markets for #crypto.
Will be a long time.
— Michaël van de Poppe (@CryptoMichNL) 25 October 2022
Insights into what levels to keep an eye on going forward in case Bitcoin bulls manage to sustain the current momentum were provided by crypto market analyst il Capo of Crypto, who still expects to see a push to $21,000 before finally capitulating down in $14,000 range.
The fact that this retracement occurs before taking the last high is a good sign. In my opinion we will see the final push up to 21k this week.
Times are 27 October and 2 November (interest). Potential bottom around mid-November.
Key levels: 21k and 14k. pic.twitter.com/MPnGFR1Whz
— il Capo Of Crypto (@CryptoCapo_) 25 October 2022
Widespread gains across financial markets
The positive momentum was not limited to just Bitcoin as the broader crypto market and major stock indices all saw bullish gains on the day.
At the close of US markets, the Dow, S&P and Nasdaq were all well in the green, up 1.63%, 1.07% and 2.25% respectively.
According to data provided by CoinMarketCap, top altcoin Ethereum (ETH) is up 9.02% on the day, while Cardano’s ADA is up 13.59%.
Daily performance in the cryptocurrency market. Source: Coin360
Other notable altcoin performers include an 18.76% gain for Toncoin (TON) and a 14.67% increase in the price of Optimism (OP).
The total cryptocurrency market cap is now $980 billion, and Bitcoin’s dominance rate is 39.7%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of 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 do not accept responsibility for any loss and/or damage arising from the use of this publication.
