Bitcoin has ‘familiar bullish smell’ as BTC price hits $66K — Analyst
2024.09.27 10:21
Bitcoin (BTC) set a fresh two-month high on Sept. 27 as China’s economic stimulus sent its stocks flying.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin joins China stocks surge on stimulus
Data from Cointelegraph Markets Pro and TradingView tracked new local BTC price highs of $66,194 on Bitstamp.
Already up 3% week-to-date, BTC/USD received a collateral boost from events in China, where a slew of stimulus measures gave the Shanghai Composite Index its best week since 2008.
“This feels frighteningly familiar,” trading resource The Kobeissi Letter wrote in part of a response on X.
The move followed the S&P 500 setting repeated new all-time highs since the Federal Reserve announced policy easing measures in the form of a 50-basis-point interest rate cut on Sept. 18.
The day’s key US macro data release, the August print of the Personal Consumption Expenditures (PCE) Index, came in broadly as expected.
“The next Fed meeting is in November and markets want another 50 basis point cut,” Kobeissi continued on the topic.
While Kobeissi argued that “did not need a 50 basis point cut in September and does not need another one going forward,” data from CME Group’s FedWatch Tool spelled out market demands.
Fed target rate probabilities. Source: CME Group
Popular Bitcoin and crypto trader Skew described the PCE results as “pretty good” for market performance.
“Keeping an eye on yields & $ into week close,” he told X followers.
BTC price support stays intact at $65,000
Bitcoin itself meanwhile continued to hold key support levels after a slight withdrawal from the two-month highs.
Related: Bitcoin sell-side risk hits 2024 low just $10K from BTC price record
“Price is grinding up against ask liquidity once again with some passive selling into price around $65.8K,” Skew noted in a further X post about trading activity on largest global exchange Binance. Bid liquidity, he added, was shifting toward $63,000 from below.
“So I noted the possibility in prior days about a shift from ask depth to bid depth in spot orderbooks if market remains strong with momentum above $65K,” the post continued.
“We can see some of that taking place here with takers taking ask liquidity from $65K & more passive buyer flow coming into the market.”
In a potential additional sign of bullish price action to come, Filbfilb, co-founder of trading suite DecenTrader, revealed a “very low” ratio of long to short BTC positions.
Similar conditions, an accompanying chart showed, immediately preceded BTC price upside.
“Im on the view Bitcoin has a particularly familiar bullish smell,” he concluded, having discussed various other promising indicator data.
“At present, we are technically lacking a higher high that would drive a wedge into those asks where we see if the FOMO can kick in.”
BTC long/short ratio. Source: Filbfilb/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
