Bitcoin climbs above $19,500 after UK reverses course on tax cuts
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(Kitco News) – Financial markets started the week on a positive note on Monday after the earnings season got off to a promising start and the UK made a 180 on its tax cut plans following last week’s market rout.
As a result of better conditions, the major stock market indices were able to recoup their Friday losses, with the S&P, Dow and Nasdaq ending the day in the green, up 2.65%, 1.86% and 3.43% respectively.
Data from TradingView shows that Bitcoin (BTC) steadily climbed the chart in trading on Monday, rising 2.7% from a low of $19,160 to an intraday high of $19,680 before retreating to support at $19,500.
BTC/USD 4-hour chart. Source: TradingView
While the top crypto managed to rally for the day, the macro picture remains largely the same as BTC trades near the middle of the range it has been stuck in since late August, prompting Kitco senior technical analyst to suggest that it is “Back to the sideways grind » for the market.
“Bulls and bears continue to battle for control, with neither having a definite advantage,” Wyckoff said. “It suggests more choppy and sideways trading in the near term.”
DXY shows signs of cracking
The bullish day in the stock market was helped by a decline in the DXY, which gave back the gains it made last week to trade near 112.08.
This prompted Michaël van de Poppe, founder and CEO of Eight Global, to point out that “slowly but surely, economic data is deteriorating in the US,” highlighting that “NY Empire Manufacturing was bad today, but also counting two weeks then got worse.”
From a bigger picture perspective, Poppe indicated that this “means we’re at the end of this run of DXY and yields,” leading the analyst to suggest it’s “time for risk. Time for Bitcoin.”
As for what’s next for the top crypt, Poppe posted the following tweet suggesting that we could see a significant breakout within one to two weeks.
The plan for #Bitcoin.
We will have a breakout in 1-2 weeks and a clear breakout above that $19.6K likely activates $22.7K. pic.twitter.com/DN7oTMehRk
— Michaël van de Poppe (@CryptoMichNL) 17 October 2022
Green in the altcoin market
The altcoin market benefited from a positive day for Bitcoin as the top 200 tokens saw massive gains, led by a 31.62% gain for Huobi Token (HT).
Daily performance in the cryptocurrency market. Source: Coin360
Other notable gains include a 16.3% increase for Polymath (POLY) and a 13.05% gain for Phala (PHA).
The total cryptocurrency market cap is now $934 billion, and Bitcoin’s dominance rate is 40.1%.
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.
