Bitcoin rose to nearly 66,000 this morning
Since September 17, Bitcoin has broken out of a trend that was hovering around $60,000 and has repeatedly challenged the important resistance at $65,000. In the past 24 hours, Bitcoin briefly broke through the $65,000 mark, climbing as high as $65,839.
Although as of the time of writing, Bitcoin is still blocked at this point and has fallen back, currently quoted at $64,941, two major macroeconomic benefits may support its future trend.
Reasons for Bitcoin’s rise: US data, China’s economic stimulus
According to "The Block", the recent Bitcoin rally is mainly driven by two major benefits:
U.S. Economic Data: The latest data from the U.S. Department of Labor showed that 218,000 people filed for unemployment benefits last week, well below expectations and hitting a four-month low, reflecting the solidity of the U.S. job market and lowering expectations of an economic recession.
China Stimulates Economy: China announced a new round of economic stimulus measures, with leaders pledging to boost the economy through increased fiscal spending and "powerful" interest rate cuts. These measures include reducing existing mortgage interest rates by 0.5%, lowering bank deposit reserve ratios to enhance banks' lending capabilities, and easing restrictions on stock investment lending.
Jake Ostrovskis, OTC trader at crypto market maker Wintermute, pointed out that China’s economic stimulus measures have improved the market liquidity environment, leading to an increase in structural bullish sentiment. At the same time, the U.S. Bitcoin spot ETF has shown net inflows for five consecutive days. These factors have combined to push Bitcoin up, allowing it to retest the $65,000 mark.
But he also warned that if Bitcoin fails to sustain a sustained position above $65,000, it could trigger strong downward pressure. In addition, the current volume of open interest in the market continues to increase, which may make it easier to trigger a rapid plunge.
Bitcoin trend analysis
"Cointelegraph" senior analyst Rakesh Upadhyay pointed out yesterday (26th) that although Bitcoin has encountered resistance at $65,000 recently, bulls have not made significant concessions to bears, which is a positive sign.
Looking at the daily trend, the 20-day exponential moving average (EMA) continues to rise ($61,863), and the relative strength index (RSI) is also in the buy zone, indicating that bulls have the upper hand. After holding $65,000, an acceleration towards $70,000 is expected, but bears are likely to mount a strong defense in the $70,000 to $73,777 range.
If Bitcoin fails to hold $65,000 and pulls back, traders can first focus on whether the 20-day EMA is broken below. If it falls below, it may return to the support range of the chart below, which is above $55,000.
Source: Cointelegraph Bitcoin daily trend
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
