Bitcoin Price Correction: $56K Holds – Peter Brandt

Bitcoin surged to $59,000 on May 2 during the Wall Street open, with the cryptocurrency’s swing lows serving as a price floor. The BTC/USD pair approached the crucial $60,000 level, demonstrating its resilience after dropping to $56,500 the day before. The United States Federal Reserve’s dovish economic guidance played a significant role in bolstering Bitcoin. Fed Chair Jerome Powell affirmed that interest rates would be cut at some point before the end of the year, emphasizing the need to balance the reduction of policy restraint to avoid negative impacts on inflation and economic activity. This announcement had a positive effect on risk assets, including BTC/USD, which exhibited relief after a week of selling pressure.

Experienced trader Peter Brandt suggested that if Bitcoin can maintain its current lows and continue to rise, it would indicate a typical bull market continuation pattern. This view aligns with ‘s previous report, which highlighted that the current price correction in BTC is relatively mild compared to previous bull cycles. Glassnode’s lead on-chain analyst, Checkmate, confirmed this claim and provided a chart to illustrate the comparatively manageable correction in the current bull market.

Some observers are optimistic about the BTC price rebound extending further. The Relative Strength Index (RSI) data on daily charts attracted attention, as it supported a budding bullish trend. The daily RSI reached its lowest level since August 2023, a period when BTC/USD violated crucial support trendlines before recovering and reaching new highs. Notably, buying Bitcoin when the daily RSI is around 30 has proven to be a successful strategy in previous market cycles, according to popular trader Daan Crypto Trades.