Bitcoin (BTC) is targeting $68,000 when Wall Street opens on July 22, as China’s interest rate cut adds further bullish momentum to the cryptocurrency.
China implements ‘unexpected’ rate cut
According to data from Cointelegraph Markets Pro and TradingView, the BTC price fell below $67,000 on the day before moving towards the range high.
The upside reversal came amid mixed performance in Asian stocks after China cut its key interest rate several times in a move that “surprised markets”.
According to sources including Reuters, the People’s Bank of China (PBOC) confirmed that it will cut the seven-day reverse repo rate by 0.1 percentage point to 1.7%, and the one-year and five-year loan prime rate (LPR) will be lowered accordingly.
“Today’s cut was unexpected and was likely driven by the sharp slowdown in growth momentum in the second quarter and the need to meet the ‘year-end growth target’ by the third plenary session,” Larry Hu, chief China economist at global financial services firm Macquarie Group, told the publication.
Market commentator Holger Chapitz noted that it has been almost a year since China last cut interest rates.
“The Chinese stock market is not that exciting,” he wrote in part of a post on X.
The decline in global interest rates is a key factor in the performance of risky assets, including cryptocurrencies. As Cointelegraph reported, the United States has yet to start its rate-cutting cycle, following China and Europe, and the market expects it to begin in September.
Popular crypto and macro commentator TMXC Trades took a more conservative stance, suggesting that China’s selective cuts would not have the desired effect.
“Going into 2024, traders were betting on a massive coordinated global easing cycle that would reverse more than half of all tightening (after grossly underestimating the impact). As of mid-July, that has essentially not happened,” he concluded.
Bitcoin Traders Expand Talk of All-Time Highs
Bitcoin itself is standing at the last resistance level before reaching its all-time high, which includes the $69,000 level that has existed since late 2021.
Related: BTC Price Down 8% From All-Time High — 5 Things to Know About Bitcoin This Week
Popular trader and analyst Rekt Capital noted in his latest X analysis that “Bitcoin has almost completely erased the -25.6% bounce.”
“It took two weeks to almost completely undo the five-week retracing.”
The attached chart compares recent BTC price action to other bullish trends during the bull market, with the most recent trend being calculated as the strongest uptrend.
“A drop to retest $65,000 is not unusual, but typically these weekly closes occur before a rally to $71,500,” another post continued.
Rekt Capital has repeatedly claimed that a new all-time high will be reached in September at the latest.
“Bitcoin is back in the range and it gives us a lot of strength,” Michael van de Poppe, founder and CEO of trading firm MNTrading, added that day.
Van de Poppe said the key level to hold as support going forward is $65,000, with the range low below that around $61,000 as the next line of defense.
“If that happens this week, we could continue to move towards ATH,” he predicted.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.