Bitcoin Hits $65,000 Amid US Stagflation Fears; Remains Favorable Entry Point
Summary:
During the early Asian trading session on May 6, Bitcoin (BTC) touched a price of $65,000, boosted by the 50-day exponential moving average (EMA). Despite some downturns, Bitcoin's value has remained approximately 15% higher than its lowest point in two months, showing signs of recovery. Experts suggest that the current rates still indicate a favorable entry point into the asset. However, a decreasing trend in Bitcoin accumulation indicates a possible waning interest among large investors. Hence, continued research and caution are advised before investing.
On May 6, during the early Asian trading hours, Bitcoin (BTC) touched a price of $65,000. The 50-day exponential moving average (EMA) was fundamental in providing immediate support for BTC. Statistics from Cointelegraph Markets Pro and TradingView point to a rise of 3.45% from a low of $63,340 on May 6, hitting an intra-day high of $65,523. Currently, BTC is about 15% higher than its lowest point in two months, which was $56,500 on May 1. Market unease regarding a stagflation threat in the US economy triggered a defensive move by investors. The recovery pattern of BTC resulted in a weekly bullish candle, easing Bitcoin funding rates into a neutral state after ending negatively last week, as reported by market intelligence tool DecenTrader on May 6. Coinglass data confirms DecenTrader's observations, revealing a state of equilibrium in Bitcoin's funding rates on exchanges, after flipping into the red last week. Uncommonly, negative funding rates are largely seen as potent bearish indicators. On the contrary, a neutral funding rate, approximately 0.025 per 8-hour period or 0.5% per week, exhibits a resetting of trader positions, signaling a balanced market sentiment. Yet, if Bitcoin registers a drop from the current levels, crucial support zones will be activated. These include the demand level of $57,000 to $64,000, encompassed by the 50-day EMA, identified by independent trader Ali Martinez as a "prime buy zone" for BTC. Despite soaring over $60,000, the Bitcoin MVRV Momentum still meets this criterion, indicating a favorable entry point into the asset. In response to the market's drawdown last week, Bitcoin whales exploited this "prime buy zone," purchasing more BTC at lower prices as per IntoTheBlock, the on-chain data provider. With every dip, addresses possessing more than 1,000 BTC have demonstrated strong accumulation. However, with each spike in accumulation followed by a price surge, the trend of whales accumulating has been noticeably receding. Though this could signify a waning interest among large investors to purchase the dip, continued accumulation is a positive signal demonstrating bullish sentiment among these investors. However, this report does not provide investment advice or recommendations. Each investment or trading maneuver carries risks, and individuals should perform their own due diligence before deciding.
Published At
5/6/2024 8:28:36 PM
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