Saltık Bullish Momentum Returns: Bitcoin has made a notable recovery from its recent two-month lows, with its price surging by almost $8,000 from last week’s lows, bringing it back to around $64,000. This resurgence in bullish sentiment has persisted into the new week, with bears struggling to push the market down during the May 6 Asia trading session.
Increasing Greed: Despite the positive price action, there are signs of increasing greed in the market, raising questions about the sustainability of the current momentum. Traders and analysts are now pondering whether Bitcoin and altcoins can maintain their upward trajectory towards all-time highs, especially after a period of significant leverage liquidation.
Neutral Funding Rates: On exchanges, funding rates remain neutral, indicating that there isn’t a widespread desire among traders to long Bitcoin at its current levels. However, it’s essential to monitor key support levels in case of a reversal. These include the short-term holder (STH) cost basis and the 100-day moving average, which historically have acted as strong bounce levels.
Weekly Close: Despite some uncertainty during the weekend, Bitcoin bulls emerged triumphant as the price held up into the weekly close, reaching around $64,000 on Bitstamp. This marks a positive performance compared to the end of April and signals a return to form for BTC/USD, which had dipped to $56,500 in the interim.
Optimism Among Market Observers: Market observers are cautiously optimistic about Bitcoin’s current trajectory, noting that the recent price action helped clear out liquidity accumulated over the past two months. While acknowledging that Bitcoin is still within a larger trading range, there is a sense of upside momentum heading into the following week.
Overall, Bitcoin‘s resilience in the face of recent volatility has instilled confidence among traders, but the sustainability of the current bullish momentum remains to be seen as the market navigates key support and resistance levels.
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