Bitcoin (BTC) hit a two-month high on September 27 as its stock price surged due to China’s stimulus package.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin joins Chinese stock market surge thanks to stimulus package
Data from Cointelegraph Markets Pro and TradingView tracked a new local BTC high of $66,194 on Bitstamp.
BTC/USD, already up 3% this week, got a side boost from events in China, where numerous stimulus measures helped the Shanghai Composite Index post its best week since 2008.
“This feels surprisingly familiar,” trade resource Kobeissi Letter wrote in part of its response to X.
The move follows the S&P 500 index hitting record highs after the Federal Reserve announced policy easing in the form of a 50 basis point interest rate cut on September 18.
The August Personal Consumption Expenditures (PCE) index, a major US macro data released today, came out largely as expected.
“The next Fed meeting is in November and the market wants another 50 basis points of cut,” Kobeissi said on the topic.
Kobeissi insisted that “a 50 basis point cut was not needed in September and no further cuts are needed in the future,” but data from CME Group’s FedWatch Tool specified market demand.
Fed target interest rate probability. Source: CME Group
Skew, a popular Bitcoin and cryptocurrency trader, described PCE results as “very good” compared to market performance.
He told his
BTC price support remains at $65,000.
Meanwhile, Bitcoin itself continued to hold onto key support levels after falling slightly from two-month highs.
relevant: Bitcoin sell-side risk has hit a 2024 low of just $10,000 in BTC price history.
In an additional He added that bid liquidity is moving below $63,000.
“So, I previously mentioned the possibility of a switch from ask depth to bid depth on the spot order book if the market remains strong with momentum above $65,000,” the post continued.
“We can see this happening here with takers requesting $65,000 of liquidity and more passive buyer flow entering the market.”
In a further potential sign of bullish price action ahead, Filbfilb, co-founder of the DecenTrader trading suite, revealed that the buy/sell ratio for BTC positions is at a “very low” ratio.
According to the attached chart, similar conditions occurred just before the BTC price rise.
“I think there is a particularly familiar bullish smell to Bitcoin,” he concluded after discussing a variety of other promising indicator data.
“At the moment we are technically lacking a higher high that would drive a wedge into the question of whether FOMO could set in.”
BTC long/short ratio. Source: Filbfilb/X
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.