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Bitcoin’s strong rally puts it in a “good position” where the 200-MA and $65,000 level could potentially serve as a new level of support.
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Bitcoin (BTC) price rallied to $65,851 on Sept. 26 as markets responded to global macroeconomic events, placing BTC in a ‘good position,’ according to traders.
BTC/USD daily chart. Source: TradingView
The strong reversal in Bitcoin’s price direction has many traders wondering what to expect next from BTC going forward.
Bitcoin’s rise above the 200-day moving average puts BTC in a “good position”
Bitcoin’s ongoing recovery accelerated on Sept. 26 backed by interest rate cuts in China and the perception that the US would manage a ‘soft landing’ on inflation. China’s latest stimulus push and the upcoming US election are also being viewed as reasons for Bitcoin’s price rally.
Bitcoin analysts, meanwhile, saw the need for the price to produce a decisive close above the daily 200 moving average (MA), currently at $63,855, to secure the uptrend.
“#Bitcoin’s market structure has flipped back to bullish on the daily timeframe” and is “also trading back above the Daily 200MA,” declared popular trader Crypto Daan Trades in a Sept. 26 X post.
“I do want to see the daily close above this level to fully confirm the breakout.”BTC/USD daily chart. Source: Daan Crypto Trades
Popular trader and analyst Rekt Capital explained in one of his latest analysis posts on X that Bitcoin is in a “good position right now,” with just four to five days to go before breaking out of its 2024 post-halving reaccumulation range, drawing from the 2016 and 2020 cycles.
BTC/USD weekly chart. Source: Rekt Capital
Historically, September has often been a bearish month for Bitcoin. However, Rekt Capital believes that the latest recovery in BTC price could make September a “fake-breakdown month after all.”
“Bitcoin is currently +9% up this September, making it the best September of all time for Bitcoin.”
“I was told September is historically a bearish month,” Pseudonymous trader Honey asked their 118,000 X followers, adding, “Why are we at 65K?”
Related: Bitcoin $73.7K breakout ‘imminent,’ sell-off intensity ‘might vary’ — Analyst
Traders believe $65,000 must become support
Meanwhile, MN Capital founder Michael van de Popple sees Bitcoin’s reclamation of support at $65,000 as crucial for its rise to new all-time highs.
“#Bitcoin is about to break $65,000 and get the show going toward a new ATH.”
Popular trader Skew explained that Bitcoin’s intra-day high of $65,851 on Sept. 26 painted a “nice” higher high that is important for how BTC’s market structure develops in the short term.
Source: Skew
The liquidation heatmap from Coinglass showed liquidity orders massing on either side of the $65,000 level across exchange order books, reinforcing its importance to traders.
BTC liquidation heatmap (screenshot). Source: CoinGlass
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
