Bullish sentiment returns, BTC's next key position: $65,000
Market analyst Bloodgood mentioned in his weekly report that he predicted last week that the Fed might cut interest rates by 25 basis points because the market generally believed so. But the Fed unexpectedly cut it by 50 basis points.
He explained that a 25 basis point rate cut is usually for a smooth landing of the economy, and a 50 basis point rate cut so quickly may make people feel that the Fed is worried about a recession, which is not good news. He mentioned that the last two times the Fed cut interest rates so much were in 2001 and 2007.
However, he noted that Fed Chairman Powell has been emphasizing that this rate cut is a well-thought-out adjustment, not out of panic. The market's reaction to the news varies, but strong economic data has reduced people's concerns about a recession.
He also mentioned that Bitcoin investors seem to be able to break through the key weekly level and did not fall below the previous low of $49,000, which may mean that the market trend is turning from bearish to bullish.
Analysts are watching the market now, and they think time will tell, but they are optimistic about the price. They think that if Bitcoin can break through $65,000, it may attract more funds and reach $70,000 in a few weeks. But if the $65,000 mark is not held, it may fall back to $60,000 again, and it may be a bit difficult to survive next.
Arman Shaban, an analyst at TradingView, also mentioned the key point of $65,000. Based on Bitcoin's past performance, he thinks the market may develop in the bullish direction predicted by Bloodgood.
Shaban mentioned in his analysis that Bitcoin did not fall below $57,870 before, and demand rose again after the adjustment. After the Fed cut interest rates, demand increased and the price rose to $62,500. Now everyone is concerned about whether Bitcoin can break through $65,000 before the end of this week. He believes that Bitcoin and other altcoins may soon usher in a big wave of gains, and the medium-term target may be $80,000.
