Bitcoin (BTC) tagged $59,000 at the May 2 Wall Street open as swing lows remained the BTC price floor.
BTC Price Heads To $60,000
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD moving closer to the key $60,000 area.
Bitcoin fell to $56,500 on May 1 before rallying on the back of dovish economic guidance from the U.S. Federal Reserve.
With interest rates not changing as expected, Federal Reserve Chairman Jerome Powell has stepped up plans to cut interest rates at some point before the end of the year.
“We know that lowering policy curbs too early or too much could reverse progress against inflation,” he said at a follow-up news conference.
At the same time, reducing policy curbs too late or too little could unduly weaken economic activity and employment.”
Risk assets responded well to this event, with BTC/USD continuing to show relief after sharp sell-side pressure earlier in the week.
“If Bitcoin can hold its lows and move higher, the chart would qualify as a very common bull market continuation chart formation.” Veteran trader Peter Brandt said Followers of X.
Cointelegraph previously reported that the current decline in BTC price from all-time highs is still modest compared to historical bull markets.
“Welcome to the mid-stage of the Bitcoin bull market correction. PS: It was literally way worse than any other bull cycle.” Checkmate, lead on-chain analyst at blockchain data company Glassnode, said: Confirmed With explanatory chart.
Bitcoin RSI has reached a key buying level.
Meanwhile, others expected the BTC price rebound to continue.
Related: Price Consolidation After Bitcoin Halving Could Last for 2 Months — Bitfinex
Of particular interest on May 2 was the Relative Strength Index (RSI) data. This data sought to reinforce a bullish narrative that has yet to begin on a daily time frame.
The daily RSI was at its lowest level since August 2023 before BTC/USD regained key support trend lines and headed toward new highs.
“Buying Bitcoin when the Daily RSI hits ~30 has been a very solid strategy so far this cycle,” said popular trader Daan Crypto Trades. wrote Here are some of X’s posts on the topic:
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.