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(Kitco News) – The cryptocurrency market experienced a midday rally on Tuesday after comments from the Fed that hinted at the possibility of an intervention in the US Treasuries market led to a 15 basis point decrease in the 10-year Treasury note to 4.09%.
And it wasn’t just the crypto market that caught a bid after the comments from the Fed, as traditional markets likewise headed 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 propelled 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
Prior to 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 its previous price of $19,300 “suggest that a market bottom in place,” Wyckoff said, but warned that “bulls need to show fresh power soon to produce a fledgling price uptrend on the daily chart. ”
It looks as though bulls got the message as they managed to spark a 5.6% intraday rally in the price of BTC and are now looking to regather their strength before pushing higher.
#bitcoin breaks to $20K. #Ethereum up 10% on the day.
Big move, as Yields have been falling down and $DXY showing weakness.
Tables are turning, it’s definitely time for significant relief across markets for #crypto.
— Michael van de Poppe (@CryptoMichNL) October 25, 2022
Insight into what levels to keep an eye on moving forward in the event that Bitcoin bulls manage to maintain the current momentum was provided by crypto market analyst il Capo of Crypto, who still expects to see a push to $21,000 before once final capitulation down into the $14,000 area.
The fact that this retracement is happening before taking the last high is a good sign. In my opinion, we will see the last push up to 21k this week.
Time pivots are October 27th and November 2nd (interest rates). Potential bottom about mid-November.
Key levels: 21k and 14k. pic.twitter.com/MPnGFR1Whz
— il Capo Of Crypto (@CryptoCapo_) October 25, 2022
Widespread gains across financial markets
The positive momentum wasn’t limited to just Bitcoin as the broader crypto market and major stock indices all saw bullish gains on the day.
At the close of markets in the US, the Dow, S&P and Nasdaq were all well into the green, up 1.63%, 1.07% and 2.25%, respectively.
According to data provided by CoinMarketCap, the top altcoin Ethereum (ETH) is up 9.02% on the day, while Cardano’s ADA put on a gain of 13.59%.
Daily cryptocurrency market performance. 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 overall cryptocurrency market cap now stands at $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 those of Kitco Metals Inc. The author has made every effort to ensure accuracy of 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 in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication.