Bitcoin (BTC) saw five-day highs on May 15 as a rebound continued after the Wall Street open.
$40,000 โstill a magnetโ for BTC price
Data from Cryptox Markets Pro and TradingView showed BTC/USD reaching $27,666 on Bitstamp.
The pair held strength on hourly timeframes after a weekly close just below the $27,000 mark.
With United States equities in a tight range on the day, crypto analysts looked for cues over where markets might go next.
For Michaรซl van de Poppe, founder and CEO of trading firm Eight, the outlook was good.
โBitcoin breaks upwards and tests $27,600. Good signs,โ he summarized.
โWeekly timeframe; Holding 200 MA and EMA. I think weโre continuing towards $38,000-42,000 from here.โ
Van de Poppe referenced the 200-week moving average and exponential moving average, these seeing a retest late last week after functioning as support for two months.
โIโm a fan of this breakdown / reclaim,โ popular trader Kaleo continued alongside a 4-hour chart of Bybitโs BTC/USD perpetual swaps.
โSee this a pretty solid r/r long setup for a potential move back to range highs. And yes, $40K is still a magnet.โ
Examining the state of the BTC/USD Binance order book, meanwhile, monitoring resource Material Indicators concluded that volatility was thus far absent.
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 itโs 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
โ Material Indicators (@MI_Algos) May 15, 2023
Trader Skew added that markets were being โlargelyโ controlled by Binance spot buyers.
โCoinbase spot led this move with strong positive spot delta (market buying),โ part of Twitter commentary noted about the dayโs uptick.
Dollar retraces part of swift gains
Elsewhere, attention continued to focus on U.S. dollar strength after a week of solid gains.
Related:ย Sink or swim at $27K? 5 things to know in Bitcoin this week
Whereas these culminated with BTC/USD hitting two-month lows under $26,000, the new week began with the opposite setup โ crypto market strength versus a comedown in the U.S. dollar index (DXY).
โItโs amazing how inversely correlated crypto has become to the Dollar. Dollar taking a breather today as we see crypto assets recover,โ popular trader Wick reacted.
Fellow trader Crypto Tony noted a โvery strongโ close for DXY could continue to pressure crypto.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
