Bitcoin (BTC) price hit $65,000 in the early Asian trading session on May 6, with the 50-day exponential moving average (EMA) maintaining immediate support for BTC.
The BTC/USD pair rose 3.45% from its May 6 low of $63,340 to an intraday high of $65,523, according to data from Cointelegraph Markets Pro and TradingView.
BTC is about 15% above the two-month low of $56,500 it reached last week on May 1, as concerns about stagflation in the U.S. economy sent investors into risk-off mode.
BTC’s recovery has created a bullish weekly candle with the Bitcoin funding ratio returning “to a more neutral state after turning negative late last week,” market intelligence platform DecenTrader said in a May 6 X post. .
“The drop below $60,000 surprised many traders before the price rebounded.”
Data from Coinglass corroborates DecenTrader’s observations showing that Bitcoin’s exchange funding ratios are now neutral after turning negative last week.
Negative funding rates, while rare, are generally considered a very bearish indicator. Conversely, a neutral funding rate (about 0.025 per 8 hours or 0.5% per week) reflects mixed sentiment in the market, indicating that traders’ positions have been reset.
However, if Bitcoin declines from current levels, key support levels will come into play. According to independent trader Ali Martinez, this includes demand levels between $57,000 and $64,000 (included in the 50-day EMA), which remains an “excellent buying zone” for BTC.
Martinez shared The following chart from Glassnode shows that Bitcoin’s recent decline has pushed the MVRV ratio below its 90-day moving average.
“When MVRV falls below its 90-day average, it signals a buying opportunity,” Martinez explained in another X post on April 16.
Despite BTC’s recent rise above $60,000, Bitcoin MVRV momentum still meets this condition. That means it’s still an ideal point to enter the property.
“Despite Bitcoin’s recent surge from $57,000 to $64,000, the MVRV 90-day ratio indicates $BTC is still in prime buy territory!”
Related: Did you die of extreme greed with over $65,000? 5 things you need to know about Bitcoin this week
Bitcoin whales’ confidence to buy dips is “declining”
According to on-chain data provider IntoTheBlock, in response to last week’s market decline, Bitcoin whales took advantage of entering a “prime buying zone” to buy more BTC at discounted prices.
The analytics firm noted that addresses holding more than 1,000 BTC have “accumulated strongly in recent months” whenever there has been a drop. However, because prices rose shortly after each accumulation period, whale stocks have been ‘decreasing’.
In a post on the X social platform on May 6, IntoTheBlock said:
“Price increased immediately after each accumulation. However, note that each cumulative surge by these holders is smaller than the last.”
While this may mean that larger investors are becoming less willing to buy dips, it is still a positive sign as continued accumulation signals bullish sentiment among this group of investors.
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.