Midway through May and bitcoin has mostly fallen lower, as markets digested several key pieces of economic data. The headline was another rate hike by the Federal Reserve, which came as U.S. non-farm payrolls rose marginally higher than expected. Heading into the last fortnight of the month, could bulls be on the brink of returning?
Current Market Status
At the halfway point of May, bitcoin has fallen to a two-month low, as market sentiment shifted bearish, following April’s strong gains.
With several key data points all being released in a short window, it was somewhat expected that price uncertainty would be present.
The Fed increased interest rates by 25 basis points, days after non-farm payrolls rose to 253,000, versus expectations of 180,000.
Since then, inflation fell to 4.9% in April, with many still uncertain as to what the Federal Reserve will do during June’s meeting.
Bitcoin (BTC) fell to a low of $25,810 last Friday, which came after a breakout occurred at a key price floor of $26,500.
This move saw the world’s largest cryptocurrency plunge to its weakest point since March 17, when the price was below $25,000.
Since then, BTC has somewhat rebounded, climbing to a peak of $27,527.51 earlier in today’s session.
From the chart, one of the catalysts for this move was the 14-day relative strength index (RSI), which rose above a ceiling at 42.00.
The index is now tracking at 44.66, with bitcoin reentering its own support point at $27,500, with bulls seemingly targeting $28,000 in the near term.
A big test will be what happens when the RSI reaches a ceiling at 48.00, should it move beyond this, not only will BTC be above $28,000, however, there is a good chance that it could hit $30,000 before the month’s end.