This text appears to be a summary of recent news and market analysis related to Bitcoin (BTC) and the cryptocurrency markets. Here are some key takeaways:
Bitcoin (BTC) starts a new week with bullish sentiment back on the radar as $64,000 returns.
As a crypto investor, I’m thrilled to see Bitcoin’s price surge past its recent lows with a powerful comeback. It has climbed an impressive $8,000 since last week’s sell-off, leaving those levels in the dust.
Although some of the advances occurred over the weekend, these gains have proven to be resilient, and on May 6 in Asian trading hours, bears have been unsuccessful in forcing the market lower.
As a crypto investor, I’ve noticed a significant shift in the market atmosphere during the second week of May. While the mood remains different from what it was before, there are clear signs of growing greed emerging.
Can Bitcoin and altcoins manage sustainable momentum toward all-time highs?
After reaching two-month lows and experiencing significant reduction in leveraged positions, this is the query that traders and analysts are likely to raise.
In the cryptocurrency exchange market, the outlook remains hopeful with funding rates being balanced and minimal indications of strong demand to buy Bitcoin at its present price point.
If unfavorable circumstances arise, it’s essential to keep an eye on critical support levels for potential rebound. Notable among these are the short-term holder (STH) cost basis and the 100-day moving average – well-known levels of resistance.
Bitcoin’s present condition is under scrutiny by CryptoMoon, as the typical trader attempts to bounce back from a nerve-wracking beginning to the month.
Bitcoin bulls triumphant after weekly close
Bitcoin bulls were pleasantly surprised by the weekend’s unexpected positive impact on the market, which helped sustain gains through the end of the week.
Based on the data from CryptoMoon Markets Pro and TradingView, this cryptocurrency was priced approximately $64,000 on Bitstamp – around $900 more than its price at the end of April.
Although it didn’t result in a large weekly candlestick, Bitcoin’s recent performance against the US dollar is noteworthy, as it marked a strong comeback after reaching a low of $56,500 during that timeframe.
Unsurprisingly, market observers are quietly optimistic.
As a crypto investor, I recently experienced a significant sell-off that swept away the liquidity I had accumulated over the past two months. However, the market bounced back just as quickly after this dip. According to Daan Crypto Trades’ latest analysis on X (formerly Twitter), this was part of the trend.
“We’re still in the bigger range but at least got some upside momentum going into next week.”
Tony Severino, the founder of cryptocurrency technical analysis platform CoinChartist, pointed out that recent sharp price drops bear resemblance to those experienced during the bull market.
Over the weekend, he shared that every higher swing low in Bitcoin’s price chart since November 2022 has taken the form of a weekly hammer.
“Is this time different?”
As a crypto investor, I’ve noticed that the price has been making an attempt to bounce back and regain the upper limit of the monthly Bollinger Band. This band has acted as a supportive level for the asset since February.
“This is potentially a positive development,” he suggested.
The data collected by CoinGlass indicates that Bitcoin’s value relative to the US dollar has risen by 5.8% during the month of May. Consequently, the decline in Bitcoin’s price quarter-to-date has been minimized and now stands at less than 10%.
BTC price levels crystalize
The unpredictable nature of crypto markets is well-known, making it easy for a new trend to gain momentum only to suddenly vanish, leaving a negative impact on market feelings.
Should Bitcoin shift direction, both traders and analysts would closely monitor the effectiveness of nearby support levels in curbing any potential price drops.
As a researcher studying the cryptocurrency market, I’ve noticed Michaël van de Poppe, the founder and CEO of MNTrading, drawing attention to the importance of the $60,000 mark. Despite providing minimal relief to bullish investors last week, this level remains noteworthy in our analysis.
He shared with his X audience that the price of Bitcoin being above $60,000 didn’t seem to excite retail investors as much as one might expect.
“This range is completely fine as long as Bitcoin holds above $60K. Altcoins slowly waking up.”
According to CryptoMoon’s latest update, the price of Bitcoin ($BTC) against the US Dollar ($USD) has reached the significant level of $60,000. Notably, this figure aligns with several trendlines that have supported the bull market since its inception in early 2023.
The 100-day moving average (SMA) and the realized price for coins held for fewer than 155 days are two components included in the analysis.
The levels of $60,650 and $59,920 serve as significant references in the Bitcoin market as of May 6th. Notably, the lower level was reported by the statistical resource, Look Into Bitcoin.
On May 6, in a research note, financial commentator Tedtalksmacro introduced the use of the 50-day exponential moving average (EMA).
As a researcher, I would put it this way: “I find it noteworthy that the 50-day Exponential Moving Average (EMA) for Bitcoin is now at $64,000, which coincides with its current trading price. A successful reclaim of this level would be a crucial sign in determining the overall market structure on higher timeframes.”
“Momentum and trend traders pay attention to the 50EMA when navigating the trend.”
More U.S. jobs data casts shadow over dollar
As a crypto investor, I find the upcoming week to be less hectic in terms of macroeconomic data releases. However, I’m keeping a close eye on recent developments that could impact the markets significantly.
Last week, the fresh U.S. employment data caused a surge in risk assets, an event that cryptocurrencies were closely monitoring.
It’s widely anticipated that the Federal Reserve will reduce interest rates in the near future. As a result, the relaxation of monetary policy is no longer a matter of speculation but rather a question of timing.
As a crypto investor, I keep a close eye on economic developments that could potentially impact the market. One such development is the possibility of quantitative easing (QE) being reintroduced by the Federal Reserve. This means the Fed might inject more money into the economy to increase liquidity and stimulate growth. If this happens, it could lead to increased inflationary pressures, which could in turn benefit certain crypto assets that act as hedges against inflation.
“Very significant chance that most of the pain is already in for Altcoins,” he argued.
“Upcoming week is going to be an interesting one, likely we’ll see some more upwards momentum as Friday showed the way for the Dollar & Bitcoin with terrible economic data. QE is coming soon.”
As an analyst, I would express it this way: The U.S. dollar’s power weakened significantly in response to the employment figures, causing a substantial drop in the U.S. Dollar Index (DXY), reaching its lowest point since April 10.
As a researcher studying the Federal Reserve’s monetary policy, I would emphasize the significance of keeping a close eye on jobless claims data in determining the potential timing of the next interest rate cut, which is scheduled for May 9th.
Leverage ignores BTC price rebound
As a crypto investor, I’ve noticed a surprising tranquility in derivatives markets with Bitcoin hovering near the $65,000 mark. However, I must remind myself that just like market sentiment, this calmness can evaporate in a heartbeat and give way to volatility.
According to current data, Bitcoin’s funding rates are nearly equal, indicating a balanced market. DecenTrader’s analysis suggests that speculators might be taking a pause after incurring losses.
“Bitcoin funding rates have reverted back to being relatively unchanged following their dip into negative territory towards the end of last week, as indicated by an X post.”
“The dip below $60k spooked a lot of traders before price rebounded.”
After observing a significant reduction leading up to the $56,500 mark, others characterized funding rates as remaining robust.
“Let’s hope it can stay that way for a healthy next leg up,” Daan Crypto Trades added.
As a researcher examining the Crypto Fear & Greed Index, I’ve noticed an intriguing shift in sentiment. With Bitcoin’s price recovery, there has been a noticeable swing from “neutral” to “greed.” It seems that investors are growing increasingly optimistic and eager for profits, with “extreme greed” potentially on the horizon.
The Index, which is a lagging indicator, is currently at 71/100, versus just 43/100 on May 2.
Mining difficulty barely due drawdown from record high
As a researcher studying the Bitcoin network, I can tell you that the current reward for mining a new block in the Bitcoin network is approximately $64,000. However, this amount may not be sufficient to prevent a difficulty drop during the next automated readjustment scheduled for May 9. In simpler terms, the current rewards might not be enough to keep miners profitable and maintain the network’s security, leading to a possible decrease in mining difficulty.
According to BTC.com’s latest data, a decrease of approximately 1.3% is expected for the second adjustment of the new difficulty epoch.
Despite the challenge reaching unprecedented levels, this trend is reflected in the mining community as well, with hash rates mirroring the situation following April’s block reward reduction, according to MiningPoolStats’ unprocessed figures.
Last week, CryptoMoon highlighted the unyielding spirit of miners, who continue to operate undeterred by the volatile cryptocurrency market.
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2024-05-06 11:35