Bitcoin could rise to $65,000 if the key support level holds

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Bitcoin (BTC) has gained 1.7% in the last 24 hours and is back above the $60,000 price level. BTC is now testing the $60,600 area as support to confirm breaking out of a downtrend channel, conformable to the merchant identified as Rekt Capital.

“A downtrend channel formed within this cluster and price broke out of it yesterday to allow for a daily close at $60600 (black). The $60600 retest is underway in an effort to claim it as new support,” explained Rekt Capital.

If the highlighted support is captured, Bitcoin could move to the $65,000 area, which is the top of its current price range.

Moreover, on the monthly time frame, Bitcoin is showing signs of strength by holding the previous high area at $61,000 as support for sixth consecutive month. Despite briefly losing it a few times, BTC always managed to close above it.

However, Bitcoin is still stuck in a post-halving re-accumulation range, according to the trader. This means that based on the previous bull cycle, BTC will be held at the current high of $70,000 until mid-September.

“Many investors are reeling at this stage due to boredom, impatience and disappointment due to the lack of major results in their BTC investment right after the halving.”

The recent price rally was fueled by an upbeat Fed minute published on August 21 suggesting a likely 25 basis point cut in US interest rates. The document reiterated remarks by Jerome Powell in late July about a likely rate cut if US market data continues to come in as expected.

With the next Federal Open Market Committee (FOMC) meeting on September 17 and 18, a 25 bp rate cut could be a catalyst to end the re-accumulation zone in Rekt Capital’s analysis.

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