As an experienced analyst, I believe that Bitcoin’s (BTC) recent price recovery above $65,000 is a promising sign for the cryptocurrency market. The 3.45% surge from its lows of $63,340 on May 6 indicates a strong buyer interest in the market.
During the early trading hours in Asia on May 6, Bitcoin’s (BTC) value reached a mark of $65,000. The 50-day exponential moving average (EMA) acted as a crucial underpinning for BTC at this point.
Based on the data from CryptoMoon Markets Pro and TradingView, the BTC/USD pair experienced a notable rise. Following its low at $63,340 on May 6, the pair saw a surge of approximately 3.5%, reaching an intraday peak at $65,523.
I’ve analyzed the current Bitcoin market, and I see that its price has rebounded around 15% from its two-month low of $56,500, which was hit last week on May 1st. The cause for this downturn stemmed from investor uneasiness regarding potential stagflation in the U.S. economy.
As a crypto investor, I’ve noticed that Bitcoin’s recent recovery led to a bullish weekly candle, according to the latest update from DecenTrader. They mentioned in a recent post on May 6th that Bitcoin funding rates have returned to a more neutral state after being negative at the end of last week. This means that the costs for holding long positions in Bitcoin have decreased, providing some relief for investors.
“The dip below $60k spooked a lot of traders before the price rebounded.”
According to data from CoinGlass, DecenTrader’s findings are validated. The funding rates for Bitcoin on various exchanges have shifted to neutral from their previous negative stance observed just a week ago.
As an analyst, I would interpret negative funding rates as bearish signals in the market, as they are uncommon occurrences. On the other hand, a neutral funding rate of approximately 0.025 per 8-hour interval or 0.5% weekly implies that traders are adjusting their positions. This situation suggests a market sentiment that is neither bullish nor bearish but rather in a state of equilibrium.
As a crypto investor, if Bitcoin were to take a dip from its present price range, several crucial support areas would emerge. Among them is the region between $57,000 and $64,000, which is reinforced by the 50-day Exponential Moving Average (EMA). According to independent trader Ali Martinez’s assessment, this specific price range represents an excellent opportunity for purchasing Bitcoin.
Martinez presented a chart from Glassnode, indicating that Bitcoin’s latest price decline caused the MVRV (Market Value to Realized Value) ratio to dip beneath its 90-day moving average.
Martinez shared in a previous post on April 16 that when the Moving Average Value (MAVR) falls beneath its 90-day average, it indicates a potential buying opportunity.
As a researcher studying the Bitcoin market, I’ve noticed that despite its recent surge past $60,000, the Bitcoin Moving Average Ratio of Volatility (MVRV) Momentum remains favorable for entering the asset based on this specific indicator’s conditions.
“Despite # Bitcoin’s recent surge from $57,000 to $64,000, the MVRV 90-Day Ratio indicates that $BTC remains in a prime buy zone!”
Bitcoin whales’ conviction to buy the dip is “dwindling”
As a crypto investor, I closely monitor market trends and price movements. Last week, the market experienced a significant drawdown, causing many investors, including Bitcoin whales, to take advantage of this situation. According to the data from on-chart provider IntoTheBlock, these whales saw this as an opportunity to buy more Bitcoin at discounted prices, entering what they consider to be the “prime buy zone.” Essentially, they believed that the price was low enough for a potential significant rebound and decided to increase their holdings.
In recent months, analytics data reveals that a significant number of Bitcoin addresses have amassed over 1,000 coins, showing noticeable growth. Every decline in price has seen these large investors adding more to their holdings. However, following each accumulation phase, there has been a subsequent price rise, resulting in a recent decrease in the frequency of such accumulation events among the largest Bitcoin investors.
In a May 6 post on X social platform, IntoTheBlock said,
“Prices have increased shortly following every accumulation. However, note that each spike in accumulation by these holders is smaller than the last.”
Large investors are becoming less eager to purchase dips in the market, but this trend actually indicates a positive outlook. Their persistent buying suggests that these investors remain optimistic about the market’s future direction.
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2024-05-06 20:34