Key Points
- Bitcoin (BTC) price is moving closer to the crucial $60,000 mark following a dip to $56,500.
- Bitcoin’s price bounce is expected to continue as the Relative Strength Index (RSI) data seeks to bolster a budding bullish narrative.
On May 2, the price of Bitcoin (BTC) neared $59,000 as the previous swing lows acted as a price floor for BTC.
Bitcoin Price Nears $60,000
Data indicates that BTC/USD is edging closer to the significant $60,000 zone. This comes after Bitcoin’s price had fallen to $56,500. However, it received a boost from the dovish economic guidance by the U.S. Federal Reserve.
The Federal Reserve’s decision to leave interest rates unchanged was expected. Jerome Powell, the Fed Chair, reiterated plans to reduce them sometime before the year ends. His statement during a press conference suggested that reducing policy restraint too soon or too much could reverse the progress made on inflation.
Bitcoin’s Bullish Trajectory
Risk assets reacted positively to these developments, and BTC/USD continued to show resilience despite earlier sell-side pressure. If Bitcoin can maintain these lows and move upwards, it will qualify as a typical bull market continuation chart construction, according to veteran trader Peter Brandt.
Despite the current BTC price pullback from new all-time highs, it is milder compared to historical bull markets. “Welcome to a more middle of the road Bitcoin bull market correction. P.S. it has been much worse literally every other bull cycle,” confirmed Checkmate, the lead on-chain analyst at Blockchain data firm Glassnode.
Others are looking ahead, expecting the BTC price bounce to continue. The Relative Strength Index (RSI) data, particularly on daily timeframes, is seeking to reinforce a fledgling bullish narrative. The daily RSI is at its lowest levels since August 2023, a time when BTC/USD was also violating key support trendlines before reclaiming them and heading to new highs.
