Peter Brandt says Bitcoin’s price correction is “very common” as long as it maintains its lows at $56K.

Bitcoin (BTC) surged to $59,000 as the Wall Street opened on May 2, with swing lows acting as a strong support level for the BTC price. Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was approaching the crucial $60,000 zone. After dropping to $56,500 on May 1, Bitcoin received a boost from the dovish economic guidance provided by the United States Federal Reserve. Fed Chair Jerome Powell confirmed that interest rates would be cut at some point before the end of the year to avoid any negative impact on inflation. This news had a positive effect on risk assets, and BTC/USD continued to recover from the sell-off earlier in the week. Veteran trader Peter Brandt noted that if Bitcoin could maintain its current levels and move higher, it would signal a typical continuation pattern in a bull market. According to Checkmate, the lead on-chain analyst at blockchain data firm Glassnode, the current pullback in BTC price is relatively mild compared to historical bull markets. The daily relative strength index (RSI) data also indicated a potential bullish trend, as the RSI reached its lowest level since August 2023, when BTC/USD successfully reclaimed key support trendlines and reached new highs. Popular trader Daan Crypto Trades pointed out that buying Bitcoin when the daily RSI hits around 30 has been a successful strategy in this market cycle. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.