Despite the corrective price action of the past week, analysts remain ‘bullish’ about Bitcoin (BTC). 5 experts say that while BTC price maintains key trend lines, it is preparing for the next rally.
$40,000 is “still a magnet” for Bitcoin price
Bitcoin price hit a five-day high on May 15 as the recovery continued. Data from TradingView shows that the BTC/USD pair reached $27,666 on Bitstamp on this date. The price maintained its strength on hourly timeframes after the weekly close just below the $27,000 level.
For popular crypto analyst Michaël van de Poppe, the outlook was good. In their analysis dated May 15, “Bitcoin is breaking up and testing $27,600. These are good signs. We have 200 MA and EMA on the weekly time frame. “I think we’re moving towards $38,000-42,000 from here,” he said. Poppe attributes the strength of BTC specifically to its relationship with moving averages.
Van de Poppe refers to the 200-week moving average and the exponential moving average. These were retested late last weekend after serving as support for two months.
Elsewhere, crypto whale and trader Kaleo continues, “I’m a fan of this breakout and recovery.” According to the analyst, “See this as a pretty solid r/r long setup for a potential move higher. And yes, $40,000 is still a magnet.”
Meanwhile, Material Indicators, which reviewed the status of the BTC/USD Binance order book, concluded that volatility has not been strong so far.
Hope you had a great weekend.
After the Weekly Candle Close/Open we do not have new #TrendPrecognition signals in the #BTC W or D time frame however it's worth noting that the A1 Slope line has reverted to upward on the W chart which indicates an increase in bullish momentum. pic.twitter.com/comKCiX6BL
— Material Indicators (@MI_Algos) May 15, 2023
Crypto analyst Skew added that the markets are “largely” controlled by Binance spot buyers. “The Coinbase spot led this move with a strong positive spot delta (market buy),” he said in some of the analysis he shared on Twitter, regarding the rise of the day.
Dollar retraces some of its quick gains
On the other hand, attention remained focused on the strength of the US dollar after a week of solid gains. These culminated with the BTC/USD pair hitting two-month lows below $26,000, while the new week started off with the opposite setup. This was the strength of the crypto market against the drop in the US Dollar Index (DXY).
Popular trader Wick said, “It is unbelievable that the cryptocurrency has become so inversely proportional to the Dollar. “The dollar is breathing today as we see crypto-assets recover.”
It’s amazing how inversely correlated crypto has become to the Dollar.
Dollar taking a breather today as we see crypto assets recover. pic.twitter.com/KaaDM2Quma
— Wick (@ZeroHedge_) May 15, 2023
Other trader Crypto Tony noted that a “very strong” close for DXY could continue to put pressure on crypto.
On the other hand, BTC’s foreign exchange reserve was falling. This shows that the selling pressure is decreasing for now.
“Q2 could be different for Bitcoin”
James V. Straten, a research analyst, pointed to a metric that suggests the possibility of a price increase in the coming weeks. Historical data shows that the market is bullish whenever the actual price exceeds the realized profit of the long-term holders.
The next bullish #Bitcoin catalyst is for the realized price to get above Long Term Holder RP, less than an $800 difference now.
Interestingly enough, each time this flipping has occurred has happened mainly in June.
August 2012 (Halving November 2012)
June 2016 (Halving July… pic.twitter.com/2ARA28FOUX— James V. Straten (@jimmyvs24) May 15, 2023
On May 15, 2023, the difference was only $800, increasing the chances of passing. It was also quite interesting that most of these transitions took place in June. Therefore, it will be interesting to watch how things develop for Bitcoin this year. As you follow on Kriptokoin.com, Bitcoin is currently trying to hold $27,000 as support.
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