Bitcoin price correction ‘too common’ if $56K low – Peter Brandt
Bitcoin (BTC) marked $59,000 at the May 2 Wall Street open as BTC price floored swing lows.
The price of BTC will reach 60,000 dollars
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD working close to the key $60,000 zone.
After falling to $56,500 on May 1, Bitcoin received a boost from dovish economic guidance by the United States Federal Reserve.
Leaving interest rates unpredictable, Fed Chairman Jerome Powell firmed up plans to cut rates sometime before the end of the year.
“We know that easing policy constraints too soon or too much will set back the growth we've seen in inflation,” he said in a press release.
“At the same time, easing policy restrictions too late or too little could unduly dampen economic activity and employment.”
Risk assets responded well to the event, and BTC/USD continued to find relief after strong sell-side pressure earlier in the week.
“Bitcoin holding these lows and moving higher on the chart qualifies as a typical bull market continuing chart construction,” veteran trader Peter Brandt told his followers on X.
As previously reported by Cointelegraph, BTC's current rebound from new highs is still mild compared to historical bull markets.
“Welcome to a mid-way Bitcoin bull market correction,” Checkmate, an on-chain analyst at blockchain data firm Glasnode, confirmed alongside the explanatory chart.
Bitcoin RSI has reached a key buy level
Others were keenly watching for the continuation of the BTC price rally.
Related: Bitcoin Post-Halving Price Consolidation Could Last 2 Months – Bitfinex
Of particular interest on May 2 was the Relative Strength Index (RSI) data, which, on the daily timeframe, looks to reinforce the nascent bullish narrative.
The daily RSI was at its lowest level since August 2023, BTC/USD was also breaking key support trends before regaining them and heading to new highs.
“Buying Bitcoin when the daily RSI hits ~30 is the strongest strategy so far this cycle,” noted trader Dan CryptoTrades wrote in part in an X post on the topic.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
