Bitcoin (BTC) surged to $59,000 as the Wall Street opened on May 2, with the swing lows acting as a solid support level for the BTC price. BTC/USD was seen approaching the crucial $60,000 zone, according to data from Cointelegraph Markets Pro and TradingView. After dropping to $56,500 on May 1, Bitcoin received a boost from the dovish economic guidance provided by the US Federal Reserve. Fed Chair Jerome Powell reiterated plans to cut interest rates before the year-end, highlighting the need to avoid premature or excessive policy restraint that could reverse progress on inflation. The market responded positively to this news, and BTC/USD continued to show relief after facing significant selling pressure earlier in the week. Veteran trader Peter Brandt noted that if Bitcoin could maintain its current levels and move higher, it would qualify as a typical bullish continuation chart pattern. It was also reported that the current pullback in BTC price from its all-time highs was relatively mild compared to previous bull markets. On May 2, attention was focused on the relative strength index (RSI) data, which indicated a potential continuation of the BTC price bounce. The daily RSI reached its lowest level since August 2023, when BTC/USD violated key support trendlines before reclaiming them and reaching new highs. Popular trader Daan Crypto Trades suggested that buying Bitcoin when the daily RSI hits around 30 has been a successful strategy in this market cycle. It is important to note that this article does not offer investment advice or recommendations, and readers should conduct their own research before making any decisions.
Bitcoin's price correction deemed 'highly typical' by Peter Brandt if it maintains lows of $56K.