Bitcoin’s price reached a fresh two-month high of $66,194 on Sept. 27, driven by renewed optimism from China’s economic stimulus measures. The surge in Chinese stocks, particularly the Shanghai Composite Index, which saw its best week since 2008, had a ripple effect on the cryptocurrency market, giving Bitcoin a significant boost.

Bitcoin Joins China’s Stock Market Rally

The stimulus measures from China have rejuvenated both traditional and digital markets, with Bitcoin’s price increasing by 3% week-to-date. As US markets digest the Federal Reserve’s recent 50-basis-point interest rate cut, Bitcoin has mirrored some of the positive momentum seen in the S&P 500.

BTC/USD 1-hour chart. Source: TradingView

Market analysts, including the trading platform The Kobeissi Letter, noted the similarity between current market dynamics and previous bull runs, hinting at potential further price action. Meanwhile, data from the CME Group’s FedWatch Tool shows market expectations for another 50-basis-point cut in November, keeping attention on macroeconomic developments.

Bitcoin Holds Strong Support at $65K

Despite minor retracements, Bitcoin held firm at the $65,000 support level. Crypto trader Skew observed substantial liquidity shifts on exchanges, with buy orders moving towards $63,000, indicating sustained market interest.

Fed target rate probabilities. Source: CME Group

Filbfilb, the co-founder of DecenTrader, pointed to a “very low” ratio of long to short BTC positions, suggesting an underlying bullish trend. He remarked that Bitcoin’s price is displaying a “familiar bullish smell,” potentially hinting at further upward movement. However, he cautioned that a higher high is needed to push the market further into FOMO (fear of missing out) territory.

With Bitcoin’s price momentum holding strong, many investors are closely watching for signs of a sustained rally as global markets continue to shift.