Bitcoin Price Holds Strong in Prime Buy Zone

During the early Asian trading session on May 6, the price of Bitcoin (BTC) reached $65,000. This increase was supported by the 50-day exponential moving average (EMA), which acted as immediate support for BTC. The BTC/USD pair rebounded from lows of $63,340 to an intra-day high of $65,523, showing a 3.45% rise. BTC is now about 15% higher than its two-month low of $56,500, which was reached on May 1. This increase in price was driven by concerns over the stagflation of the US economy, causing investors to adopt a risk-off approach. The recovery of BTC resulted in a bullish weekly candle and a return to more neutral funding rates after going negative at the end of the previous week. Data from Coinglass supports this observation, showing that Bitcoin’s funding rates are now neutral after turning negative last week.

Negative funding rates are usually seen as bearish indicators, while neutral funding rates indicate a mixed sentiment in the market. If BTC’s price starts to decline from its current levels, key support levels to watch would be between $57,000 and $64,000, where the 50-day EMA is located. This range is considered a prime buy zone for BTC. Independent trader Ali Martinez shared a chart from Glassnode showing that the recent drawdown in Bitcoin’s price caused the MVRV ratio to drop below its 90-day moving average. According to Martinez, when the MVRV dips below the 90-day average, it signals a buying opportunity. Despite BTC’s recent surge above $60,000, the Bitcoin MVRV Momentum still suggests that it is an ideal entry point for the asset.

Bitcoin whales, which are addresses holding more than 1,000 BTC, took advantage of the price decline last week and bought more BTC at discounted prices. The rate of accumulation by these whales has been decreasing with each dip. While this may indicate a decrease in appetite among large investors to buy the dip, it is still a positive sign as continued accumulation suggests a bullish sentiment.

Celinka Lujan

Celinka Lujan

14 thoughts on “Bitcoin Price Holds Strong in Prime Buy Zone

  1. BTC’s recovery is a much-needed boost for the market, exciting times ahead! 📉💪💹

  2. The 50-day EMA acting as immediate support for BTC, a positive signal for investors! 👏📉💹

  3. The constant focus on whale activity is becoming irrelevant. It doesn’t reflect the overall market sentiment.

  4. Bitcoin’s recovery is looking really bullish, I’m excited! 🐂💹

  5. This increase in price is definitely a positive sign for the market!

  6. Data from Coinglass supporting the observation, BTC is showing promising signs!

  7. The decreasing rate of accumulation among Bitcoin whales may indicate a decrease in appetite, but the continued accumulation is still a positive sign!

  8. It’s great to see Bitcoin’s funding rates returning to a neutral state after going negative last week, stability is key!

  9. The support levels between $57,000 and $64,000 are crucial, watching closely!

  10. Bitcoin whales taking advantage of discounted prices, smart move!

  11. This article is just hyping up Bitcoin’s price increase without considering the potential risks. 📈🤔

  12. Whales buying the dip doesn’t necessarily mean the market is bullish. They might have ulterior motives. 🐋🎣

  13. This MVRV ratio seems like another technical indicator that can easily mislead investors. 📊🙄

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