Compass Investments

– Before this week’s surge of more than $66,000, the cryptocurrency market was suffering from information fatigue, but a new series of catalysts has led traders to believe that bitcoin is ready for another surge.The Bank of England announced a cut in interest rates and other additional measures, which, according to traders, coincided with the rise in the price of bitcoin.

evidence that lower interest rates will increase the money supply in the world and the United States.

Ultimately, traders believe that lower central bank interest rates and a potential return to loose monetary policy will reduce the high yields of many investment products and drive the desire for yield in bitcoin and other cryptocurrencies.

Short-term return to USD 62K?

From a technical perspective, bitcoin traded above its 200-day moving average three times during the day, and prices traded above the 196-day downtrend line. As mentioned above, a close above $65,000 would set up a weekly and monthly candle of higher prices.

It would not be unusual for prices to pull back to the 20-day moving average at $62,000 in the coming week. In any case, traders will be watching to see if the price is strong enough to defend this level and enter the $66,000-68,000 zone.

the new bullish bitcoin scenario that traders have been waiting for may be on the horizon, suggesting that the BTC price is ready to hit new all-time highs.