Originally published on: September 27, 2024
Bitcoin has surged to a fresh two-month high, reaching $66,194 on Bitstamp as China’s economic stimulus measures drove its stocks upward. The cryptocurrency has seen a 3% increase week-to-date, benefiting from the stimulus events in China that propelled the Shanghai Composite Index to its best week since 2008.
According to trading resource The Kobeissi Letter, this latest price action in Bitcoin has a “frighteningly familiar” feel to it, hinting at a potential bullish trend. The momentum in the cryptocurrency market has been further supported by the S&P 500 hitting repeated all-time highs following the Federal Reserve’s interest rate cut announcement on Sept. 18.
Market analysts anticipate further monetary policy easing from the Fed, with expectations of another 50-basis-point cut in November. Despite differing opinions on the necessity of these rate cuts, market data suggests strong demands from investors for further easing measures.
Meanwhile, popular crypto trader Skew remains optimistic about market performance, pointing to positive economic data from the US as a key driver. Bitcoin’s price has maintained crucial support levels despite a slight pullback from its recent highs, indicating strong demand and positive market sentiment.
In a promising sign for Bitcoin’s future price action, data from various trading indicators show a favorable ratio of long to short positions, typically preceding upward price movements. Traders like Filbfilb of DecenTrader see a bullish trend on the horizon, with potential for further price gains in the near future.
As with any investment, it’s essential for readers to conduct their own research and consider the risks involved before making any financial decisions. Don’t miss out on the latest market insights by subscribing to our Markets Outlook newsletter for exclusive updates every Monday.