What Can We Expect for Bitcoin’s Price After Today’s Massive Rally? There’s One More Level to Break Through
Bitcoin ($BTC) surged sharply after the US Treasury Department expanded liquidity support for the long-term bond market, triggering one of the largest short liquidations since October 2020.
Michael Nadeau, founder of The DeFi Report, pointed out the timing of Bitcoin’s recent surge, noting that it came shortly after the US Treasury announced it would expand its long-term bond buyback operations starting in September.
According to Nadeau, this move can be considered the second “QE lite”—a limited quantitative easing—that the US Treasury has implemented in the last few weeks to ease pressure on long-term Treasury bonds.
The analyst stated that gold was the first asset to react to the macroeconomic change, followed by Bitcoin. However, Nadeau added that a significant portion of the movement in $BTC stemmed from the liquidation of short positions and shifts in market positioning, rather than new and sustained spot demand.
With Bitcoin rising to the $68,000-$69,000 range, several technically significant levels have come back into focus. Nadeau noted that $68,500 represents the cost basis for short-term Bitcoin investors, $68,800 corresponds to the 21-week moving average, and $69,100 to the 200-day moving average.
Therefore, Bitcoin’s current price movement is considered critical in determining whether the uptrend will continue.
Nadeau said he considered the recent rise noteworthy due to the U.S. Treasury’s expansion of bond buybacks and steps to ease pressure on long-term interest rates, but noted that the move was largely supported by liquidations at this stage.
According to the analyst, the key question now will be whether sustained buying demand will emerge in the market that can keep the uptrend going. If Bitcoin breaks through the critical resistance levels between $68,500 and $69,100 and turns them into support, it could pave the way for a new bull run for $BTC.
*This is not investment advice.
