Bitcoin (BTC) price rebounded after its overnight decline, gaining positive momentum around $62,750 and hitting an intraday high of $65,000. This rise is attributed to the continuation of the bullish momentum that resembles the patterns of previous bullish cycles in 2013 and 2020.
CryptoQuant analyst Crypto Dan noted that long-term investors have taken profits twice in those previous cycles, and that the market is currently showing similar signs that support another rally.
The current global macroeconomic environment, especially with central banks cutting interest rates, is also contributing to increased market liquidity and creating an encouraging investment environment. China’s fiscal policy is one of the main factors influencing Bitcoin’s price. The Chinese finance minister is expected to announce plans to stimulate the struggling economy in the upcoming fiscal policy update. If the government announces a large fiscal stimulus package, it could increase global market liquidity and benefit riskier assets like BTC.
Bitcoin Price Back to $65,000: Positive Market Mood Fuels Investor Hopes Despite Mixed Indicators
Bitcoin’s recent price surge has renewed hope for the crypto community, with analyst Dan from CryptoQuant suggesting the market is continuing on an upward trajectory, boding well for BTC holders.
Dan compared the current market trends to previous bull cycles in 2013 and 2020, noting that if current patterns continue, another big rally is likely. Dan also highlighted the impact of interest rate cuts around the world, explaining that prices often rise in anticipation of such changes.
On the other hand, analyst Avocado Onchain pointed to a decline in the value of the Coinbase Premium index, an index that measures the difference in the price of BTC between Coinbase and Binance and usually indicates a negative general sentiment; however, the recent recovery in the price of the coin reflects a more optimistic outlook.
Typically, Bitcoin price starts to recover after the Coinbase Premium Index drops below -50 during bull market waves, and the absence of hysterical selling reflects large investors accumulating Bitcoin at low prices, supporting expectations that the bull cycle will continue.
Therefore, Bitcoin’s return to $65,000 amid a positive general sentiment opens the door for further gains. Analysts point out that past price trends and institutional accumulation of BTC are fueling the bullish outlook, while the declining value of the Coinbase Premium index indicates investor caution, creating mixed but positive expectations for Bitcoin’s future.
Bitcoin Price Rises Amid Positive Market Mood, Awaiting Chinese Fiscal Policy News
Cryptocurrency prices surged sharply on Saturday, with BTC climbing back toward $65,000. Investors quickly shrugged off concerns about a slight rise in inflation and turned their attention to China’s fiscal policy news on Saturday. Bitcoin is up 7% from its lows below $59,000 on Thursday, and the cryptocurrency rally has been accompanied by gains in the stock market, with both the Dow Jones Industrial Average and the S&P 500 hitting new highs.
Bitcoin mining stocks like Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) saw gains ranging from 5% to 10%, while Coinbase (COIN) rose 7%.
Analysts also pointed out that the upcoming announcement regarding China's fiscal policy could have a significant impact on the crypto market, as traders may turn to digital currencies to express their expectations about China's fiscal stimulus plans.
Bitcoin price faces important resistance level at $66,000, investors eyes support level at $63,000
Bitcoin price is currently hovering around $62,720 with indications of it stabilizing just below the downtrend line which represents an important barrier near $63,450, which is the closest resistance level for the currency price and a break of it could push the price to reach $64,400 and then $65,300, while failure to surpass these levels could lead to increased downward pressures.
The closest support level is around $61,840, which is close to the 50-day EMA at $62,500, so it is an important level to watch. If this level is broken, the next support will be at $61,600, followed by a stronger support level at $60,600.
Technically, the RSI is currently at 62, which means that the price is approaching the overbought zone, which could limit the potential for a short-term upside. On the other hand, the 50-day exponential moving average is providing strong support at $62,500, and if BTC fails to settle above these support areas, it could drop further towards the $60,600 area.
In conclusion, Bitcoin remains at a critical crossroads, with a break above $66,000 potentially opening the way for further strong gains, while a failure to break this resistance could see a return to lower levels. Investors should keep an eye on the important support at $61,600, as a break there could herald the start of a larger correction.