Bitcoin aimed for $68,000 at the July 22 Wall Street open as a Chinese interest rate cut bolstered bullish sentiment in the crypto market.
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin (BTC) targeting range highs after dipping below $67,000 earlier in the day.
This upward shift coincided with mixed performances in Asian stocks as China announced unexpected interest rate cuts.
The People’s Bank of China (PBoC) confirmed it would cut the seven-day reverse repo rate by 0.1% to 1.7%, alongside reductions in the one-year and five-year loan prime rates (LPR), as reported by sources including Reuters.
“The cut today is an unexpected move, likely due to the sharp slowdown in growth momentum in the second quarter as well as the call for ‘achieving this year’s growth target’ by the third plenum,” Larry Hu, chief China economist at Macquarie Group, told the publication.
Commenting on the market’s reaction, Holger Zschaepitz noted the rarity of such a cut. “Chinese stock market not really enthusiastic,” he wrote on X.
Global interest rate reductions are crucial for the performance of risk assets, including crypto. Despite China and Europe’s rate cuts, the United States has not yet initiated a similar cycle, with expectations set for September.
TMXC Trades offered a more cautious perspective, suggesting that China’s rate cuts might not yield the anticipated results.
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“Coming into 2024, traders were betting on a massive coordinated global easing cycle… Here today in mid-July, virtually none of that has come to pass,” it stated.
Bitcoin, meanwhile, faced its final resistance cluster before reaching all-time highs, with $69,000 being a key level since late 2021.
“Bitcoin has cancelled out almost the entirety of the -25.6% retrace,” popular trader and analyst Rekt Capital noted in his latest X analysis.
“It took two weeks to almost fully cancel out a five-week retrace.”
“Accompanying charts compared recent BTC price behavior to other bull market retracements, identifying the latest as the deepest of the uptrend.
“Any dips to retest $65,000 would not be out of the ordinary,” Rekt Capital added, anticipating potential upside to $71,500.
Rekt Capital reiterated the case for new all-time highs by September “at the latest.”
“Bitcoin is back in the range and provides a lot of strength,” Michaël van de Poppe, founder and CEO of trading firm MNTrading, commented.
He emphasized $65,000 as a crucial support level, with $61,000 as the next line of defense.
“If that’s going to happen this week, then we should be good for continuation toward the ATH,” he predicted.
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