Key Points
- Bitcoin (BTC) price reached $65,000 during early Asian trading on May 6.
- The cryptocurrency’s recovery has resulted in a return to more neutral funding rates.
Bitcoin’s price experienced a surge, hitting $65,000 during the early Asian trading session on May 6. The 50-day exponential moving average (EMA) served as immediate support for the cryptocurrency.
Data indicates that the BTC/USD pair bounced back from lows of $63,340 on May 6, marking a 3.45% increase to an intra-day high of $65,523.
Bitcoin’s Recovery
Currently, Bitcoin is sitting approximately 15% above its two-month low of $56,500, which it hit on May 1. This recovery was due to concerns over the US economy’s stagflation, which led investors to adopt a risk-off mode. The recovery resulted in a bullish weekly candle, with Bitcoin funding rates returning to a more neutral state.
Data shows that Bitcoin’s funding rates on exchanges have now neutralized after turning negative last week. A neutral funding rate signals a reset in trader positions, reflecting a mixed sentiment in the market.
Potential Support Levels
If Bitcoin were to decline from its current levels, key support levels would come into play. These include the $57,000 to $64,000 demand level, which remains a prime buy zone for the cryptocurrency.
Despite Bitcoin’s recent surge above $60,000, the Bitcoin MVRV Momentum still indicates that it is still an ideal point of entry into the asset.
In response to the market’s drawdown last week, Bitcoin whales capitalized on the entry into the prime buy zone and purchased more BTC at discounted prices. However, each spike in accumulation by these holders is smaller than the last, which could mean that large investors have less appetite to buy the dip. Despite this, continued accumulation signals bullish sentiment among this cohort of investors.
