Bitcoin (BTC) begins a new week with a bullish sentiment as its price reaches $64,000 once again. After a significant sell-off last week, BTC has managed to gain nearly $8,000, leaving behind its recent swing lows. The gains made during the weekend have proven to be sustainable, and bears are unable to push the market back down during the May 6 Asia trading session. Traders and analysts are now wondering if Bitcoin and altcoins can maintain their momentum towards all-time highs.
Despite the positive outlook, support levels will be tested if the market takes a turn for the worse. These support levels include the short-term holder (STH) cost basis and the 100-day moving average, which are classic bounce levels. Currently, funding rates remain neutral on exchanges, indicating that there is no mass desire to long BTC at its current levels.
Bitcoin bulls have emerged triumphant after the weekend, with the price holding steady and closing the week at around $64,000. While this may not seem like a significant increase, it marks a return to form for BTC/USD, which had dropped to $56,500 at one point. Market observers are cautiously optimistic about the recent price action.
Several analysts have pointed out the importance of the $60,000 level for Bitcoin. Despite the lack of fanfare accompanying the market comeback, this level coincides with various trendlines that have supported BTC/USD since the bull market began. These trendlines include the 100-day simple moving average and the short-term holder realized price. The market will closely monitor these support levels to see if they can limit any potential downside.
The upcoming week is relatively quiet in terms of macroeconomic data, but recent events, such as the United States employment figures, have provided a boost to risk assets. The Federal Reserve is now expected to lower interest rates in the coming months, which could lead to an easing of financial conditions. Traders are also keeping an eye on the U.S. dollar’s strength, which took a hit after the jobs data release.
Despite the recent BTC price rebound, leverage on derivatives markets remains relatively calm. Funding rates for Bitcoin are practically neutral, indicating that speculators are still recovering from their losses. The Crypto Fear and Greed Index also shows a shift from “neutral” to “greed” sentiment, with “extreme greed” potentially on the horizon.
Bitcoin’s mining difficulty is predicted to decrease by around 1.3% at the next automated readjustment on May 9. However, the difficulty and hash rate are still at all-time highs, indicating the resilience of miners despite market volatility.
Please note that this article does not contain investment advice or recommendations. Readers should conduct their own research before making any investment decisions.