Bitcoin (BTC) is starting the new week with a bullish sentiment as the price reaches $64,000 once again. After a significant sell-off last week, BTC has managed to gain nearly $8,000 and leave behind its swing lows. The gains made over the weekend have proven to have staying power, as bears have been unable to push the market back down during the May 6 Asia trading session. Traders and analysts are now wondering if Bitcoin and altcoins can sustain this momentum and reach all-time highs.
Despite the positive outlook, support levels will be tested if the market takes a turn for the worse. These support levels include the short-term holder (STH) cost basis and the 100-day moving average, which are both considered classic bounce levels. The current state of Bitcoin is being closely examined by Cointelegraph as traders recover from a turbulent start to the month.
The weekend was ultimately favorable for Bitcoin bulls, as the price held up and even saw some unexpected upside. The weekly close was around $64,000 on Bitstamp, which is $900 higher compared to the end of April. While not a significant increase, it is a notable return to form for BTC/USD, which had dropped to $56,500 during the week. Market observers are cautiously optimistic about this development.
Analysts have noted that Bitcoin has been forming higher swing lows since November 2022, which is indicative of a bullish market. The price is also attempting to reclaim the upper monthly Bollinger Band, which has been acting as support since February. In May, BTC/USD has seen a 5.8% increase, reducing overall losses for the second quarter to under 10%.
Traders and analysts will be watching nearby support levels closely if Bitcoin’s trajectory changes. $60,000 is seen as a significant level, as it coincides with several trendlines that have supported BTC/USD since the beginning of the bull market in 2023. These trendlines include the 100-day simple moving average and the short-term holder realized price. The 50-day exponential moving average has also been added to the mix as a key level to watch.
The upcoming week is relatively quiet in terms of macroeconomic data, but recent events, particularly the United States employment figures, have provided a boost to risk assets. The Federal Reserve is expected to lower interest rates in the coming months, which could lead to an easing of financial conditions. Some analysts even suggest that quantitative easing (QE) could make a comeback, increasing available liquidity.
The atmosphere on derivatives markets is currently calm as Bitcoin approaches $65,000, with funding rates remaining neutral. This reflects speculators licking their wounds after recent market volatility. The Crypto Fear and Greed Index has also shifted from “neutral” to “greed” as sentiment has improved alongside the BTC price recovery.
Bitcoin’s mining difficulty is expected to drop by around 1.3% at the next automated readjustment on May 9. However, difficulty and hash rate are currently at all-time highs, indicating miners’ resilience despite market volatility.
Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.