Bitcoin price is still in a ‘major buy zone’ with support at $65k
The 50-day moving average (EMA), held as BTC's immediate support, was held at $65,000 for Bitcoin (BTC) in the early Asian trading session on May 6.
According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair rallied 3.45% from a low of $63,340 on May 6 to an intraday high of $65,523.
As the threat of stagflation in the US economy sent investors into risk-elimination mode, BTC is now more than 15% above the two-month low of $56,500, reached last week on May 1.
BTC recovers as Bitcoin funding rates return to “neutral from negative late last week,” market intelligence platform DecenTrader said in a May 6 post on X.
“The curve below $60K worried many traders before the price rebounded.”
DecenTrader's observation of data from Coinglass shows that Bitcoin exchanges are now neutral after turning negative last week.
Negative funding rates, although not frequent, are typically seen as indicators of high carry. On the contrary, the neutral funding rate – at 0.025 in the eight-hour period or 0.5% on a weekly basis – shows a resumption in trading positions, which shows the mixed sentiment in the market.
However, if Bitcoin were to decline from current levels, key support levels would come into play. These include the $57,000-64,000 level of interest (embedded in the 50-day EMA), which remains a “prime buy zone” for BTC, according to independent trader Ali Martinez.
Martinez shared the following chart from Glassnode, showing Bitcoin's recent drop in market-value-to-realized-value (MVRV) ratio below its 90-day moving average.
In another X post on April 16, Martinez explained, “When MVRV drops below its 90-day moving average, it signals a buying opportunity.
Despite BTC's recent break above $60,000, Bitcoin's MVRV momentum still meets this condition, meaning it is still an ideal point to enter the asset.
“#Bitcoin has recently rallied between $57,000 and $64,000, but the MVRV 90-day ratio shows that $BTC remains in a major overbought zone!”
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Bitcoin whales' judgment to buy the bait is “diminishing”.
Reacting to the market's decline last week, Bitcoin whales took advantage of entering a “major buying zone” to buy more BTC at discounted prices, according to on-chain data provider IntoTheBlock.
The analytics firm noted that addresses holding more than 1,000 BTC have “accumulated strongly in recent months.” However, the whale stocks are “decreasing” as the price increases shortly after each harvesting season.
In a May 6 post on X's social platform, IntoTheBlock said:
“The price went up shortly after each stockpile. Note, however, that each increment stored by these containers is smaller than the last.
This means that while the interest of large investors to buy dips may be waning and waning, the accumulation is still a positive sign as it reflects bullish sentiment among this set of investors.
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.
