Bitcoin Hits $59,000 Amid Favorable Forecast from US Federal Reserve
Summary:
Bitcoin (BTC) rose to $59,000 on May 2, amidst a positive economic outlook pronounced by the US Federal Reserve. The daily Relative Strength Index (RSI) showed its lowest level since August 2023, offering a potential indicator of an upward BTC price movement. The BTC's current price dip from recent record high levels is deemed modest compared to past bull markets. These movements have led traders and analysts to predict a continuation of the bull market.
As the US Wall Street open unfolded on May 2, Bitcoin (BTC) managed to reach $59,000, maintaining its value above recent swing lows. TradingView's data from Cointelegraph Markets Pro portrayed BTC/USD pulling itself closer to the crucial $60,000 mark. Following the previous day's dip at $56,500, Bitcoin experienced a lift due to a sympathetic economic outlook pronounced by the United States Federal Reserve. The Fed, as expected, held interest rates steady, with Chairman Jerome Powell bolstering plans for rate cuts before the year's end. Mr. Powell indicated that untimely or excessive policy easing might cause the progress made on inflation to backtrack, while late or inadequate easing might unnecessarily sap economic operations and employment. Given this, risk assets had a positive response, and BTC/USD continued showing resilience after severe sell-side pressure earlier in the week. Experienced trader Peter Brandt indicated that if Bitcoin manages to sustain these low levels and move upwards, the chart would likely reflect a typical bull market evolution chart pattern. Cointelegraph previously reported that the current BTC price dip from record high values remains modest in comparison to historic bull markets. The average bull market correction is currently being experienced, according to Checkmate, the leading on-chain analyst at Blockchain data company Glassnode. Some are looking forward to the potential continuation of the BTC price recovery. Particularly intriguing are the Relative Strength Index (RSI) data results of the day, which aim to prop up a burgeoning bullish story. The daily RSI has hit its lowest since August 2023, a moment when BTC/USD was also breaching key support trendlines before recovering and achieving new highs. Buying Bitcoin when the Daily RSI has hit around 30 has been quite a successful strategy in this cycle so far, according to well-known trader Daan Crypto Trades. Please note that this piece does not offer investment advice or recommendations. Each trading and investment move carries risk, and readers are advised to do their research prior to making a decision.
Published At
5/2/2024 5:59:46 PM
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