[Comparative to Daily Market News] A return to bull market sentiment? BTC's break above $6.5 million is the key

After the Federal Reserve cut interest rates by 50 basis points yesterday, loose monetary policy boosted market sentiment, and the US stock and crypto markets rose sharply.

Comparative data shows that after the volatility caused by the initial interest rate cut subsided, Bitcoin bulls began to gain strength, and BTC was pushed from a support level of $60,000 to an intraday high of $63,903.It fell back to $62,771 at press time, up 4.11% in 24 hours. 

Altcoins have seen impressive gains, with dozens of coins showing double-digit gains among the top 200 coins by market capitalization.

Altlayer (ALT) led the rise, rising 42.1%, while Popcat (POPCAT) and Cat in a Dogs World (MEW) both increased 27.5%.

Currently, the overall market value of cryptocurrencies is 2.19 trillion US dollars, and Bitcoin's market share is 57.1%.

At the close of the US stock market, the Dow initially closed up 1.2%, the S&P 500 index rose 1.7%, all of which reached record highs; the NASDAQ rose 2.5%. Star technology stocks generally rose. Tesla (TSLA.O) rose 7%, Nvidia (NVDA.O) rose 4%, and Apple (AAPL.O) rose 3.7%.

Bull sentiment returns, BTC's next key position: $65,000

Market analyst Bloodgood said in his weekly update:“In last week's report, I pointed out that the Fed is about to enter a stable, slow, and orderly cycle of interest rate cuts, because the market believes that it is very likely to cut interest rates by 25 basis points, yet when the meeting was finally held, the Fed decided to cut interest rates by 50 basis points, which was beyond most people's expectations. This seems like it should be better for the market — after all, we're cutting interest rates faster — but things aren't that simple.”

“Normally, the expected process for the economy to perform well is to cut interest rates by 25 basis points to achieve a soft landing, because cutting interest rates too fast means that the Fed is worried about a recession. This is not a good sign. It can be said that the last two times the Fed began the cycle of cutting interest rates with 50 basis points was in 2001 and 2007.”

He pointed out:“Despite this, Powell continues to repeat the term 'readjustment' in an attempt to emphasize that this is a 50 basis point deliberate adjustment rather than a panic move. Judging from market performance so far, the response seems mixed, even though very solid economic data has greatly dampened concerns about the recession.”

Bloodgood said that Bitcoin bulls were able to “break through the critical weekly level without falling below the previous low of $49,000,” which could be “a sign that the trend is shifting from bearish to bullish.”

The analyst said, “Time will tell, but I'm now expecting a higher price, which means a break above $65,000. If it breaks through, I expect more inflows, which could reach $70,000 within a few weeks. If $6.5 million is rejected, we might test $6 million again, and if we fail, there could be months of pain over the next few months.”

TradingView analyst Arman Shaban also emphasized that $65,000 is a key level to watch for, and is leaning towards the bullish results proposed by Bloodgood based on Bitcoin's past performance.

Shaban wrote, “By analyzing the Bitcoin chart over the weekly time frame, we can see that according to previous analysis, Bitcoin has not stabilized below $57,870. After a short-term wave of corrections,needsStrong again.Demand increased further and successfully rose to $62,500 last night after the Federal Reserve announced a half-percent cut in interest rates. Now, we have to see if the price can break through $65,000 by the end of this week's candlestick chart. Bitcoin and other altcoins are likely to soon begin their main bullish wave, and Bitcoin's potential target for the medium term is $80,000”.

Meanwhile, the previously bearish TradingView analyst Xanrox also turned bullish after the Federal Reserve cut interest rates and believes that Bitcoin is likely to rebound to $130,000.

Xanrox said, “Bitcoin has been trading sideways for over 6 months, but this should end. On the chart, we can see a bullish flag, and price movements in recent days have greatly increased the possibility of a bullish breakout. Although I've been bearish from May ($72,000) until now, recent price movements have changed my mind and moved me to a completely bullish pattern.”

He pointed out:“FromElliottFrom a wave perspective, we are starting another strong shock wave (5), and the horizontal price movement (wave (4)) appears to be a very complex WXYXZ triple three correction pattern. On the chart, you can see the price movement throughout the bullish cycle starting at $15476. From a time perspective, this makes sense because the time range is almost the same as Waves (2).”

To determine price targets, Xanrox identified 0.382, 0.618, 1.000, 1.382, or 1.618 extensions using the Fibonacci extension tool.He said:“Waves (5) are always measured from the beginning of an uptrend to the end of the wave (4), and I estimate the target to be around $130,000.”

Despite improving market sentiment, Secure Digital Markets analysts warned that the timing of the Fed's interest rate cut could raise concerns.

They said, “If economic indicators deteriorate at the same time as interest rates are cut, this may indicate deeper economic problems. Traders should pay close attention to key indicators such as employment data and leading economic indicators. “Historically, sharp interest rate cuts, such as those in 2001 and 2007, have led to major market declines — the S&P 500 fell by more than 40% in 350 days due to sharp increases in unemployment.”

They concluded: “While this doesn't necessarily mean the situation will repeat itself, it's important to be aware of these patterns, especially as we go through a cycle of interest rate cuts. Unlike recent weak economic data, which is seen as a positive catalyst for interest rate cuts, in this environment, worsening data may have the opposite effect and may drag down the market.”

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