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

Bitcoin (BTC) registered 1.7% growth in the last 24 hours and is back above the $60,000 price level. BTC is now testing the $60,600 zone as support to confirm the exit of a downtrend channel, according to the trader identified as Rekt Capital.

“A downtrending channel formed within this cluster and price broke out from it yesterday to enable a Daily Close able the $60600 (black) level. Retest of $60600 is in progress in an effort to reclaim it as new support,” explained Rekt Capital.

If the highlighted support is conquered, Bitcoin could move to the $65,000 area, which is the top of the current price cluster where it is located.

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

Nevertheless, 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 is bound to be retained at its current all-time high of $70,000 until mid-September.

“Many investors get shaken-out in this stage due to boredom, impatience, and disappointment with lack of major results in their BTC investment in the immediate aftermath of the Halving.”

The recent price hike was propelled by a bullish Fed minute published on Aug. 21, which hints at a likely 25 basis point cut in US interest rates. The document reiterated Jerome Powell’s remarks in late July about a likely rate cut if US market data keeps coming as expected.

As the next Federal Open Market Committee (FOMC) meeting is set to happen on Sep. 17 and 18, a 25bps rate cut could be a catalyst to end the re-accumulation zone range from Rekt Capital analysis.