Bitcoin (BTC) begins a new week with a bullish sentiment as the price reaches $64,000 once again. After experiencing a significant sell-off last week, BTC has made an impressive recovery, gaining nearly $8,000. The gains made over the weekend have proven to be sustainable, and bears have been unsuccessful in pushing the market down during the May 6 Asia trading session. As a result, the mood going into the second week of May is considerably different, although increasing greed is starting to become apparent.
Traders and analysts are now questioning whether Bitcoin and altcoins can maintain their momentum towards all-time highs after experiencing a two-month low and a significant reduction in leverage. So far, the outlook on exchanges remains promising, with neutral funding rates and a lack of mass desire to long BTC at current levels. However, if the situation worsens, key support levels such as the short-term holder (STH) cost basis and the 100-day moving average will be tested.
Bitcoin bulls have emerged triumphant after the weekly close, with the price reaching around $64,000 on Bitstamp, which is $900 higher than the end of April. Although the weekly candle is not exceptionally large, it represents a strong comeback for BTC/USD, which had dropped to $56,500 during the week. Market observers are quietly optimistic about this development.
Technical analysts have noted that every higher swing low in Bitcoin since November 2022 has been a weekly hammer, suggesting a positive trend. In addition, Bitcoin’s price is attempting to reclaim the upper monthly Bollinger Band, which has acted as support since February. Data from CoinGlass shows that BTC/USD is up 5.8% in May, reducing overall losses for the second quarter to under 10%.
As Bitcoin’s price stabilizes, traders and analysts are closely watching nearby support levels to see if they can limit any potential downside. $60,000 is a significant level, as it coincides with several trendlines that have supported BTC/USD since the beginning of the bull market. These trendlines include the 100-day simple moving average and the short-term holder realized price. If Bitcoin manages to stay above $60,000, it could define the high timeframe market structure.
The upcoming week is relatively quiet in terms of macroeconomic data, but recent events, such as the United States employment figures, have given risk assets a boost. Traders are closely monitoring the Federal Reserve’s actions, as the central bank is increasingly expected to lower interest rates in the coming months. The weakening of the US dollar has also caught the attention of traders, and jobless claims data will be crucial in determining the timing of Fed rate cuts.
Despite Bitcoin’s price rebound, leverage on derivatives markets remains neutral, indicating that speculators are cautious. Funding rates for Bitcoin have returned to a more neutral state and are considered healthy after a massive reset during the drop to $56,500. However, the Crypto Fear and Greed Index shows that sentiment has shifted from neutral to greed, with extreme greed on the horizon. This suggests that investors’ appetite for risk is increasing.
Although Bitcoin’s price has reached $64,000, it is still expected to face a difficulty drop at the next automated readjustment on May 9. The difficulty is predicted to decrease by around 1.3%, although it remains at all-time highs. Miners have shown resilience despite market volatility, and the hash rate is also at all-time highs.
In conclusion, Bitcoin’s price has made a strong recovery, reaching $64,000 once again. Traders and analysts are cautiously optimistic about the sustainability of this momentum and are closely monitoring support levels. Market sentiment is shifting towards greed, and the US dollar’s strength has taken a hit. Despite the price rebound, leverage remains neutral, and miners continue to show resilience.