EMC Labs: $64,000 - $66,000 is considered the key level to determine whether the market can break through its previous high

The latest report from cryptocurrency research institute EMC Labs indicates that after the Federal Reserve's 50 basis point rate cut, the market reaction has been generally stable, and Bitcoin (BTC) may be entering the second half of a bull market.

The report shows that in the first week after the U.S. interest rate cut on September 18th, BTC rose by 7.54% for the whole week, closing at $63,577.66 with slightly increased volume.

BTC daily chart has broken through multiple moving averages, indicating that the market is diverging and forming a trend. In short term, BTC has stood above its 200-day moving average but still needs to break through its downward trend line; $64k-$66k are important levels to determine whether or not it can surpass previous highs.

In terms of capital flow direction, ETFs and stablecoins had a net inflow of $931 million this week which is less than last week but still maintains positive inflow. Supply analysis shows a "long-to-short" phenomenon in which long-term investors have started to reduce their holdings slightly while short-term investors increase theirs - consistent with early bull market characteristics. The EMC BTC Cycle Metrics indicator stands at 0.25; further activation awaits for bullish signals.