Bitcoin offers ‘good signs’ as analysts retain $40K BTC price target
2023.05.15 17:53
Bitcoin saw five-day highs on May 15 as a rebound continued after the Wall Street open.
BTC/USD 1-hour candle chart on Bitstamp. Source: TradingView
$40,000 “still a magnet” for BTC price
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $27,666 on Bitstamp.
Bitcoin (BTC) on Bitstamp 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 Michaël van de Poppe, founder and CEO of trading firm Eight, the outlook was good.
“Bitcoin breaks upwards and tests $27,600. Good signs,” he summarized.
“Weekly timeframe; Holding 200 MA and EMA. I think we’re continuing towards $38,000-42,000 from here.”
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.
BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter
“I’m a fan of this breakdown / reclaim,” popular trader Kaleo continued alongside a four-hour chart of Bybit’s BTC/USD perpetual swaps.
“See this a pretty solid r/r long setup for a potential move back to range highs. And yes, $40K is still a magnet.”
BTC/USD perpetual contract annotated chart. Source: Skew/ Twitter
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 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
Trader Skew added that markets were being “largely” controlled by Binance spot buyers.
“Coinbase spot led this move with strong positive spot delta (market buying),” part of Twitter commentary noted about the day’s uptick.
Dollar retraces part of swift gains
Elsewhere, attention continued to focus on U.S. dollar strength after a week of solid gains.
Related: 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 — crypto market strength versus a comedown in the U.S. Dollar Index (DXY).
“It’s amazing how inversely correlated crypto has become to the Dollar. Dollar taking a breather today as we see crypto assets recover,” popular trader Wick reacted.
Fellow trader Crypto Tony noted a “very strong” close for DXY could continue to pressure crypto.
U.S. Dollar Index (DXY) 1-hour candle chart. Source: TradingView
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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.
