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Bitcoin is marching through overhead liquidity as China announces economic stimulus measures, but some BTC price correction concerns still remain.
Bitcoin (BTC) tapped $65,000 after the Sept. 26 Wall Street open as United States macro events fueled risk asset gains.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin heads higher as China adds to risk-asset fervor
Data from Cointelegraph Markets Pro and TradingView showed BTC price momentum delivering $65,521 on Bitstamp — its highest in nearly two months.
Continued upside came as US Treasury Secretary Janet Yellen boosted hopes that the Federal Reserve would achieve a “soft landing” on inflation.
Speaking to CNBC, Yellen painted an optimistic picture of the US economy, one that Fed Chair Jerome Powell avoided in prepared remarks at the 2024 US Treasury Market Conference at the New York Fed.
“As I noted when I spoke at this event in 2015, our nation’s entire financial framework has been built around the ability to quickly and efficiently transform Treasury securities into cash liquidity,” he said.
“I said then that ‘these markets need to keep functioning at a high level, and we all have a stake in making sure that they do.’ I remain wholly dedicated to that goal.”
Elsewhere, US Q2 gross domestic product data came in line with expectations at 3.0%, while jobless claims fell slightly below anticipated levels.
The S&P 500 set a new intraday record high on the day, continuing a rally that gathered pace after Powell announced the first interest rate cuts in four years on Sept. 18.
BTC/USD vs. S&P 500 1-day chart. Source: TradingView
Commenting, trading resource The Kobeissi Letter pinned the reason for the latest gains on China, which itself announced various fiscal stimulus moves this week.
“This is only the beginning,” it wrote in part of a dedicated thread on X, describing China as “panicking.”
BTC retracement targets include $57,000
Bitcoin market participants, meanwhile, saw the need for consolidation around the latest highs before fresh upside.
Related: Bitcoin sell-side risk hits 2024 low just $10K from BTC price record
“$65K ask liquidity taken. Next ask liquidity is $66K. Bid liquidity around $62K – $61K,” popular trader Skew confirmed to X followers.
“So given the large gap now, would want to see more structure develop or a nice consolidation before continuation higher. The bad outcome would be a full retrace with weakness.”
The latest data from monitoring resource CoinGlass showed liquidity massing on either side of the spot price once more across exchange order books.
BTC liquidation heatmap (screenshot). Source: CoinGlass
A cautious WhalePanda said that more time was needed to be convinced of BTC price strength, noting a major options expiry due on Sept. 27.
“Bitcoin being above $65k ruins a lot of the ‘lower highs forever’ crowd,” he wrote on X, referring to recent price behavior.
“I do expect this to be a struggle though since tomorrow is a large quarterly options and futures expiry so anything happening in next 24 hours is just noise.”
BTC/USDT perpetual swaps 1-day chart. Source: Justin Bennett/X
Commentator Justin Bennett nonetheless went further, warning that a return below $60,000 was still possible.
“This isn’t confirmed yet, but the conditions favor sweeping the $BTC $57-$58k longs before targeting the $68-$70k liquidity,” he commented alongside the daily chart.
“Invalidation on a sustained break above $65k.”
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.
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