The price of Bitcoin (BTC) has just surpassed $65,500 (USD), breaking the downward trend that it had been in for six months since it reached a record high.
While Bitcoin has been mostly range-bound for the past six months, it was seeing increasingly lower highs. That’s why it looked like it was mired in a downtrend, according to technical analysis.
The USD 65,500 area served as a local maximum a month ago in a rally experienced by bitcoin. Therefore, It was key for the market to overcome this level to break the downward trend.which finally came to fruition today, as the graph shows.
The overcoming of this price level shows that demand is gaining strength. If this scenario continues, Support may form in this areawhich functioned as resistance last month.
In technical financial analysis, a resistance refers to a price zone where there is more supply than demand, which is why it declines. On the other hand, support means an area of quotes where the opposite happens, causing it to rise. In bullish trends, these phenomena tend to replace each other due to market psychology.
Bitcoin, gold and stocks are all rising in price
Bitcoin’s current surge comes a week after US interest rates were cut for the first time in more than four yearsAs CriptoNoticias has reported, this monetary policy increases liquidity, which has motivated demand in the markets.
China has also announced interest rate cuts and is injecting liquidity to stimulate the economy. Part of this liquidity can be transferred to financial investments.
Both gold and the S&P 500 (SPX), the index that includes the shares of the 500 main companies listed in the United States, have registered new historical price records today. As a result, investors are turning to different assets to increase the value of their capital.
With interest rate cuts expected to continue in the United States and other parts of the world, investor appetite for markets considered “risky” could continue to be boosted. However, fears of recession are still on the table, so high volatility is expected in the face of upcoming data on economic development.
