Bitcoin Turns Green on Dovish Fed, A Close Above $61,000 Vital
Bitcoin prices stabilized yesterday, closing with a green bar—a major relief. Though it is not yet clear whether sellers will pick up momentum, the downward trend remains. Of note, BTC is trading below April 2024 lows, and the breakout pattern of mid-this week remains valid. As long as the $60,000 to $61,000 resistance zone remains, aggressive sellers might consider unloading on every attempt higher. In the short term, $52,000 and $50,000 are targets sellers are eyeing.
At press time, Bitcoin is down 8% in the previous trading week but in green, adding 3% in the last day. Overall, there is a relief bounce. However, unless there is a recovery, following through on May 3, yesterday’s pullback will be nothing but a dead cat bounce. Currently, the average trading volume on the last day stands at $29 billion, down 36%.
The following Bitcoin news events are worth watching:
- Even though GBTC has been leading outflows, there appears to be a change. On May 1, trackers show that Fidelity took over, leading and decreasing $191 million of BTC; a major blow for bulls. Over $563 million of BTC were offloaded, the largest single-day outflow since the product launch.
- With the Federal Reserve turning “dovish”, signaling that they won’t consider raising rates in the coming months, analysts are bullish on BTC. Traders expect the coin to turn around if prices find support at the May 1 low.
Bitcoin Price Analysis
BTC/USD is weak at spot rates but steadily recovering.
For the uptrend to hold, buyers must prevent a drop below the April 30 and May 1 lows. This means that prices need to recover and close above $61,000.
If this print and trading volume picks up, then the May 1 bar will be climatic, and a two-bar formation signaling a possible bottom would have printed. This arrangement will likely anchor the next wave up toward $68,000 and better.
Conversely, any reversal of yesterday’s gains will dampen sentiment, fast-tracking the dump to $53,000 and $50,000 in alignment with late April 2024 losses.
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