Jerome Powell

Bitcoin

Daily

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) tagged $59,000 into the May 2 Wall Street open as swing lows held as a BTC price floor.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/8c06a949-a988-4d1a-90cb-18a554803e23.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: TradingView
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="btc-price-heads-toward-60-000">BTC price heads toward $60,000</h2>
Data from <a href="https://subscription.cointelegraph.com/">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> showed BTC/USD acting closer to the key $60,000 zone.
After <a href="https://cointelegraph.com/news/bitcoin-price-bouncing-57k-why-these-levels-key">falling to $56,500</a> on May 1, Bitcoin received a boost from dovish economic guidance by the United States Federal Reserve.
As it left interest rates predictably unchanged, Fed Chair Jerome Powell reinforced plans to cut them at some point before the end of the year.
“We know that reducing policy restraint too soon or too much could result in a reversal of the progress we have seen on inflation,” he <a href="https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20240501.pdf" target="_blank" rel="noopener nofollow">said</a> during a subsequent press conference. 
<blockquote data-ct-non-breakable="true">
 “At the same time, reducing policy restraint too late or too little could unduly weaken economic activity and employment.”
</blockquote>
Risk assets reacted well to the event, and BTC/USD continued to display relief after precipitous sell-side pressure earlier in the week.
“If Bitcoin can hold these lows and move higher the chart will qualify as a very common bull market continuation chart construction,” veteran trader Peter Brandt <a href="https://twitter.com/PeterLBrandt/status/1786013547992097117" target="_blank" rel="noopener nofollow">told</a> followers on X.&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/a8558cbe-5077-48a2-aca3-3f59ca10bbcc.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD chart. Source: Peter Brandt/X
 </figcaption>
</figure>
Earlier, Cointelegraph reported that the current BTC price pullback from new all-time highs <a href="https://cointelegraph.com/news/bitcoin-dumps-bull-market-excess-etf-outflows-500m">was still mild</a> compared to historical bull markets.
“Welcome to a more middle of the road Bitcoin bull market correction. P.S. it has been much worse literally every other bull cycle,” Checkmate, the lead on-chain analyst at blockchain data firm Glassnode, <a href="https://twitter.com/_Checkmatey_/status/1785863611300401526" target="_blank" rel="noopener nofollow">confirmed</a> alongside an explanatory chart.&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/73345ae9-d8f6-4895-85ba-b988d0f6a3a3.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin bull market drawdowns. Source: Checkmate/X
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="bitcoin-rsi-hits-key-buy-level">Bitcoin RSI hits key buy level</h2>
Others meanwhile looked ahead with an eye to the BTC price bounce continuing.
Related:&nbsp;<a href="https://cointelegraph.com/news/bitcoin-halving-price-consolidation-ethereum-altcoin-market">Bitcoin post-halving price consolidation could last 2 months — Bitfinex</a>
Of particular interest on May 2 was relative strength index (RSI) data, which, on daily timeframes, sought to bolster a fledgling bullish narrative.&nbsp;
The daily RSI was at its lowest level since August 2023, when BTC/USD was also <a href="https://cointelegraph.com/news/btc-price-bounces-support-2023-bull-market">violating key support trendlines</a> before it reclaimed them and headed to new highs.
“Buying Bitcoin when the Daily RSI has hit ~30 has been a pretty solid strategy so far this cycle,” popular trader Daan Crypto Trades <a href="https://twitter.com/DaanCrypto/status/1785997900981362909/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in part of an X post on the topic.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/6d5881db-86df-4345-bfdd-cda79efbdf0c.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD chart. Source: Daan Crypto Trades/X
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin price correction ‘very common’ if $56K lows hold — Peter Brandt

Table of Contents

Cointelegraph

Other articles published on May 2, 2024

Ethereum Price Declines as User Interest Grows

Crucial May 6 Reply Brief: Ripple (XRP) vs. SEC Could Determine Future of Institutional Sales

Coinbase Adds Futures for Three Altcoins

🚀 NEOPIN Referral Program is now live! Win a share of $70,000 🚀

$XDC Price Prediction – Is The XDC Network A Potential Ethereum Contender?

Solana (SOL) Leverages Google Cloud Integration for Enhanced Crypto Gaming Experience on GameShift

Join our free newsletter for daily crypto updates!