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(Kitco News) – Bitcoin (BTC) and the broader cryptocurrency market rose higher in trade on Tuesday following a surprise interest rate decision in Australia, where the country’s central bank bucked the prevailing trend and announced it would only raise interest rates on 25 basis points this week.
That helped trigger a second straight bull day in the stock market, which was bolstered by a new labor market reading that showed US job openings fell the most in two-and-a-half years during the month of August. . This was a welcome sight for the Federal Reserve, which has been trying to clamp down on excessive labor demand in the fight against inflation.
As a result of the positive evolution, the S&P, the Dow Jones and the Nasdaq closed the day in the green, with an increase of 3.06%, 2.80% and 3.34%, respectively.
Data from TradingView shows that Bitcoin bulls came in strong during early trading hours on Tuesday, propelling the top cryptocurrency from a low of $19,484 to an intraday high of $20,465. The bears attempted to break the momentum of building in the afternoon session, but the hit was well defended by the bulls, who managed to bid BTC price back above the support at $20,300.
BTC/USD 4-hour chart. Source: TradingView
Kitco Senior Technical Analyst Jim Wyckoff noted the turning tide in his Bitcoin morning roundup, saying “Bulls have gained a bit of momentum this week, and further price gains in the short term would likely start an uptrend of prices on the daily chart.
Now is not the time for the bulls to give in; however, as they “have more work to do in the near term to suggest an uptrend in prices can be sustained,” 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 big hurdle to overcome.
There is still a lot of work to be done to $BTC. 21.7-22k is the first important major area
Remember, markets move when people are out of the game
They move up to force you to buy, + they move down to try to force you to sell. They compel action on your part. Why did the price stop moving in the previous time? pic.twitter.com/lsktrSxAXR
—Pentoshi 🐧 (@Pentosh1) October 4, 2022
Increase BTC accumulation
While the price of Bitcoin has struggled to build momentum over the past 6 months, crypto traders have taken advantage of lower prices by accumulating BTC at the highest rates since 2015.
According to a Twitter mail From Ki Young Ju, CEO of crypto analytics platform CryptoQuant, “BTC accumulation level hit a 7-year high. Bitcoins older than 6 months now take 74% of the realized cap. It was 70% and 77% at the latest lows in 2019 and 2015 respectively.”
Simply put, bitcoins held for more than six months comprise a total of 74% of the maximum realized limit of crypto. The last time this metric was higher than it currently is was in 2015, when BTC was worth $220. That rise to 77% occurred during the low of the cycle, with each rise in accumulation coinciding with a low in the market.
Crypto market intelligence firm IntoTheBlock provided further verification that hodlers have been piling up, posting the following tweet showing that the number of Bitcoin holders has continued to rise despite the ongoing crypto winter.
The number of #bitcoin headlines has been growing in the bear market 📈
— IntoTheBlock (@intotheblock) September 27, 2022
Altcoins rise higher
The altcoin market enjoyed a widespread green thanks to the BTC price surge, with 95% of tokens in the top 200 posting gains on Tuesday.
Cryptocurrency market daily performance. Source: Coin360
The biggest gainers highlighted include Constellation (DAG), whose price increased 12.86% to $0.08555, followed by a 12.75% gain for SwissBorg (CHSB) and an 11.56% increase for Render (RNDR) .
The total cryptocurrency market capitalization 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 Kitco Metals Inc. The author has gone to great lengths to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage arising from the use of this publication.