China's Central Bank Stimulus Plan Boosts Financial Markets, Bitcoin Breaks $64,000, Poised for Strongest September on RecordFinancial markets have regained optimism following the release of China's comprehensive stimulus plan. Data from Bitpush shows Bitcoin fluctuating near $63,200, subsequently breaking through the $64,000 resistance level
China's Central Bank Stimulus Plan Boosts Financial Markets, Bitcoin Breaks $64,000, Poised for Strongest September on Record
Financial markets have regained optimism following the release of China's comprehensive stimulus plan. Data from Bitpush shows Bitcoin fluctuating near $63,200, subsequently breaking through the $64,000 resistance level. As of press time, it is trading at $64,440, marking a 1.8% increase over the past 24 hours. The upward trend in altcoins continues, with most of the top 200 tokens experiencing gains. EchelonPrime (PRIME) leads the pack with a 21.3% surge, followed by dogwifhat (WIF) at 14.9%, and Altlayer (ALT) at 12.4%. Aave (AAVE) saw the biggest drop, declining by 6.6%, followed by Catizen (CATI) at 6.6%, and MXToken (MX) at 5.3%. The overall cryptocurrency market capitalization currently stands at $2.25 trillion, with Bitcoin accounting for 56.3%.
On the US stock market front, the S&P 500, Dow Jones, and Nasdaq all climbed, ending the day with gains of 0.25%, 0.20%, and 0.56%, respectively. Spot gold continued its record-breaking rally, surpassing $2,660 per ounce for the first time in history.
Global Easing Trend
The Conference Board reported on Tuesday a significant decline in consumer confidence in the US for September. The overall index dropped from 105.6 to 98.7, marking the largest monthly decline since August 2021. Potentially influenced by this news, the market expects the Fed to cut interest rates by another 50 basis points at its November meeting, according to data from the CME FedWatch Tool. This expectation rose from 50% to 61% compared to the previous day.
QCPCapital analysts suggest that China's proactive monetary measures, coupled with the Fed's recent 50-basis point rate cut, indicate a global easing trend. This could provide support for risk assets, including cryptocurrencies, in the near future.
Best September Performance Ever?
Despite a weak start to September, Bitcoin has rebounded by 7.25% so far this month as the month draws to a close. It is now poised for its strongest September performance in its history. From a technical perspective, Joel Kruger, market strategist at LMAXGroup, believes the initial resistance level for Bitcoin lies at $65,000. We need to see this psychological barrier comfortably broken to initiate the next leg higher, retesting and breaking through all-time highs.
Numerous analysts anticipate that bulls will easily surpass $65,000 in the coming months, particularly if Bitcoin closes September on a positive note. Historical data suggests that years where Bitcoin rises in September often see strong performance in the fourth quarter. Kruger concludes, "October and November are the best months for crypto asset performance, so the market should expect a strong entry into Q4."
Crypto analyst Will Clemente writes, It's psychologically very difficult to go from trying to cut your losses during volatility to letting winners run. The exact structural change in the BTC market above $65,000 is the threshold for risk appetite and shifting this bias in my mind.
Data from CoinGlass indicates that liquidity is increasing on both sides of the BTC/USD order book as the price remains range-bound. $62,000 and $65,000 remain key levels that traders are keeping a close eye on.
Noted trader DaanCryptoTrades expresses optimism about the next move. The bulls know where the liquidity is, breaking the $65,000 level will set up for higher highs and a shift in market structure. Theres plenty of liquidity still in that area for $70,000 to be a big breakout.
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