Bitcoin (BTC) surged to $59,000 when Wall Street opened on May 2, with swing lows acting as a strong support level. BTC/USD approached the crucial $60,000 zone, according to data from Cointelegraph Markets Pro and TradingView.
After falling to $56,500 on May 1, Bitcoin received a boost from the United States Federal Reserve’s dovish economic guidance. Fed Chair Jerome Powell reiterated plans to cut interest rates before the year’s end, stating that reducing policy restraint too soon could lead to a reversal of progress on inflation.
The market responded positively to the news, and BTC/USD continued to recover from the intense selling pressure earlier in the week. Veteran trader Peter Brandt noted that if Bitcoin can maintain these lows and move higher, it would signal a typical bullish continuation chart pattern.
Earlier, it was reported that the current BTC price pullback, compared to historical bull markets, was relatively mild. Checkmate, the lead on-chain analyst at Glassnode, confirmed this observation, stating that the correction was more moderate compared to previous cycles.
Meanwhile, others are optimistic about the BTC price bounce continuing. On May 2, the relative strength index (RSI) data on daily timeframes supported a budding bullish narrative. 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 highlighted that buying Bitcoin when the daily RSI hits around 30 has been a successful strategy in this cycle.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.