Bitcoin (BTC) hit $65,000 after the Wall Street open on September 26 as macro events in the United States fueled a rise in risk assets.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin is on the rise as China adds to the risk asset craze.
BTC price momentum hit a nearly two-month high of $65,521 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
The gains continued as U.S. Treasury Secretary Janet Yellen raised hopes that the Federal Reserve would achieve a “soft landing” on inflation.
In her interview with CNBC, Yellen painted an optimistic picture of the U.S. economy, a picture that Federal Reserve Chair Jerome Powell avoided in a prepared speech to the 2024 U.S. Treasury Market Conference at the New York Fed.
“As I mentioned when I spoke at this event in 2015, our country’s entire financial system is built around the ability to quickly and efficiently convert government bonds into cash liquidity,” he said.
“At the time, I said, ‘These markets need to continue to function at a high level and we all have a stake in making sure that happens.’ I am fully committed to that goal.”
Elsewhere, U.S. second-quarter gross domestic product (GDP) data was in line with expectations of 3.0%, while jobless claims were slightly below expected levels.
The S&P 500 continued its upward trend after Chairman Powell announced the first interest rate cut in four years on September 18, breaking an intraday high on this day.
BTC/USD vs S&P 500 1-day chart. Source: TradingView
Commentary, trade resource Kobeissi Letter pointed to China’s recent announcement of various fiscal stimulus measures as a reason for the recent rise.
“This is just the beginning,” he wrote in part of a thread dedicated to X, and described China as “in a state of panic.”
BTC retracement targets include $57,000.
Meanwhile, Bitcoin market participants have recognized the need for consolidation around the latest highs before a new uptrend can occur.
relevant: Bitcoin sell-side risk has hit a 2024 low of just $10,000 in BTC price history.
“We have $65,000 in liquidity. The next requested liquidity is $66K. Bidding liquidity is approximately $62,000 to $61,000.” Popular trader Skew confirmed this to his X followers.
“So, given the huge gap we have at the moment, we would want to see more structure developed or some nice integration before we continue to push the bar higher. A bad outcome would be a complete retracement with weakness.”
Latest data from monitoring resource CoinGlass shows liquidity converging on both sides of spot prices across exchange order books once again.
BTC liquidation heatmap (screenshot). Source: Coinglass
A cautious WhalePanda said more time is needed to be confident in BTC price strength, noting that the key option expiration date is September 27.
“If Bitcoin goes above $65,000, the ‘low highs forever’ crowd will be very screwed,” he wrote on X, referring to recent price trends.
“But I expect this to be challenging because tomorrow there are large quarterly options and futures expire, so everything that happens over the next 24 hours is just noise.”
This is the BTC/USDT perpetual swap 1-day chart. Source: Justin Bennett/X
Nonetheless, commentator Justin Bennett went further, warning that profits below $60,000 are still possible.
“Although not yet confirmed, it would be advantageous to clear long $BTC $57-$58,000 before targeting $68-$70,000 liquidity,” he commented alongside the daily chart.
“Continued breaks in excess of $65,000 are void.”
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.