Bitcoin May Surge to $65,000 If Essential Support Level is Maintained
Bitcoin (BTC) is currently poised for a significant price movement, with possibilities of rallying to $65,000 should it maintain a crucial support level of $60,600. Renowned trader Rekt Capital has highlighted this resistance point as pivotal in Bitcoin’s recent activity, following a breakout from a downtrend channel that has encapsulated the cryptocurrency’s price action.
In the past 24 hours, Bitcoin has shown a commendable price increase of 1.7%, reclaiming its position above the $60,000 mark after testing the $60,600 region for support. According to Rekt Capital’s analysis, the recent breakout from the downtrend has enabled a daily close above the $60,600 threshold, marking this level as a potential new support point. Upon solidifying this support, it is anticipated that Bitcoin could ascend towards the $65,000 area, positioned at the upper echelon of the current price cluster.
Furthermore, Bitcoin’s performance on a monthly timeframe demonstrates resilience, having consistently held the previous all-time high of $61,000 as a support level for the past six months. During this period, despite experiencing brief declines below this threshold, BTC has successfully closed above it, indicative of its underlying strength.
However, Rekt Capital notes that Bitcoin remains in a post-halving re-accumulation phase, suggesting that the cryptocurrency will likely hover around the current all-time high of $70,000 until mid-September. This stage often causes some investors to feel disillusioned due to prolonged periods of no significant price movement following the Halving event.
The recent upward momentum in Bitcoin’s price can be attributed to bullish sentiments in the market, particularly stemming from favorable Federal Reserve minutes released on August 21. These minutes indicate a potential cut of 25 basis points in U.S. interest rates, echoing comments made by Jerome Powell in late July regarding possible rate adjustments, contingent upon upcoming U.S. market data.
As the market prepares for the next Federal Open Market Committee (FOMC) meeting scheduled for September 17 and 18, a rate cut could serve as a significant catalyst that propels Bitcoin out of its current re-accumulation range, marking a new chapter in its price journey. Investors and market analysts alike will be closely monitoring these developments, as they may shape the future trajectory of Bitcoin.
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