Bitcoin surges, lifting crypto market out of slump

Bitcoin’s current price of 66,249.40 USD has been +5,434.80 in the past five days. As a result, Bitcoin futures were perceptibly bullish, holding above $60k on Tuesday, May 14. On Wednesday, the soft US CPI and retail sales report discussed in the opening saw “risk” sentiment accelerate in the form of a bullish range expansion. 

Bitcoin has performed well based on stock market indices and soaring highs, which are the days’ when US equity markets hit record highs, including Wall Street and the Dax. But with softer US data, traders can assume the Fed will cut “easier money,” which feeds hungry risk interest. 

In order to prevent a rebound in the “soft landing scenario,” the United States must simultaneously reduce inflation and sustain stable development. Traders prefer softer US data over “strong” data, and numerous moves show markets that it would not take much weakness in today’s second-tier data for investors to extend Wednesday’s momentum to the weekend. 

Still, if incoming data allows and sends the US dollar lower, an extension of Wednesday’s consolidation to the indices higher is reasonable enough for Bitcoin and Gold.

Technical analysis: Where is the crypto market headed?

The bitcoin price has remained strong above the $60,000 support zone, following a fresh increase above the $62,000 level. The pair overcame many obstacles, including the $63,500 resistance, and even cleared the $65,500 resistance. It set a new weekly high at $66,411 and is now consolidating gains. 

It holds gains and trades well above the recent wave’s 23.6% Fib retracement level, which went from the $61,073 swing low to the $66,411 high. The immediate resistance level is close to $66,400. The first major resistance could be near $66,850, above which the price might test the next key resistance at $67,200. 

If it continues increasing towards the $67,200 resistance, there could be more gains and a test of the $68,000 resistance. Furthermore, if the price closes above the $68,000 resistance zone, BTC is likely to continue moving higher as per Bitcoin’s forecast. A downside correction may commence if sellers maintain their enthusiasm and effectively guard against the $66,400 resistance.

The next level of immediate support is approximately $65,150. The daily chart shows strong trading volumes prelude Wednesday’s run, the best in two months. The 4-hour chart shows the RSI above the overbought and a small bearish pin bar formed on Thursday morning, suggesting the bullish power is slowly running out. In such a scenario, it is best to wait for a downside retracement, which could be the bullish setup above or around the 200-bar average and the prior swing high.

In the absence of a substantial and unexpected decline in economic data, it is improbable that US equities will soon reverse their current upward trajectory, as current trends continue to indicate a robust bullish market. 

Both the S&P 500 and Nasdaq have broken their records of previous all-time highs. Thus, the markets will perceive any pullbacks to these breakout levels as an opportunity for investors to drive further gains. 

The bullish outlook for US equities remains firmly established, provided the economic data continues to conceal any substantial deterioration. Thus, buyers will aggressively pursue new record highs in response to most declines.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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