- Bitcoin has recently experienced an impressive weekend rally.
- The recent rally followed a panic-filled week that saw Bitcoin tank to two-month lows.
- Analysts have weighed in on where the asset will likely go from here.
Bitcoin shakes off last week’s bearish sentiment.
Last week, confidence in the crypto market was shaken as the largest crypto asset by market cap experienced a sharp drop to two-month lows. Over the weekend, however, the asset showed signs of resilience, bouncing from these lows to erase the week’s losses.
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Can Bitcoin sustain the rally?
Bitcoin Erases Last Week’s Losses and Some
According to CoinGecko data at the time of writing, Bitcoin is trading around $64,800, up nearly 14.5% or $10K from two-month lows of about $56,550 reached last week after an impressive weekend rally.
The recent rally appears to be primarily driven by a weak U.S. jobs report for April 2024, suggesting that continued high interest rates could be taking a toll on the economy. Per the report, the U.S. only added 175,000 jobs in the month, below an expected 243,000. At the same time, wages only increased 3.9% year-over-year (YoY), below a predicted 4%. The positive crypto market reaction to the report comes as investors believe it could make the Federal Reserve consider long-anticipated rate cuts.
Amid the potential for shifting macroeconomic winds, Bitcoin saw significant buying pressure from ETFs and whales. For example, Grayscale’s GBTC recorded its first net positive flows day with $63 million, even as whales scooped up a staggering 47,000 BTC worth about $3 billion.
So, is the bull market back in full swing?
“A Slow Grind”
Amid Bitcoin’s recent price action, several analysts have suggested that the asset had bottomed out. Amongst these analysts is BitMEX co-founder Arthur Hayes. Per a Friday, May 3 Medium blog post, however, Hayes suggests Bitcoin’s run to fresh all-time highs is more likely to be “a slow grind” than a rapid rise.
"I expect prices to โฆ chop, and begin a slow grind higher," Hayes wrote.
According to the analyst, Bitcoin will likely bounce around between the $60,000 to $70,000 price point till August before embarking on its slow march to new highs. This predicted consolidation aligns with Bitcoin’s historical pattern in the months after the halving. As recently highlighted by fellow crypto analyst Ali Martinez, this consolidation took 189 days in 2016 and 87 days in 2020.
On the Flipside
- A whale address that has been dormant for over a decade recently moved over 687 BTC worth about $44 million. These moves are typically viewed as short-term bearish signals, as the moved assets are often sold for profit.
- According to Ali Martinez, Bitcoin’s market value to realized value (MVRV) suggests that the asset remains “in a prime buy zone” despite its recent bounce.
Why This Matters
Bitcoin is the largest cryptocurrency by market capitalization. The broader crypto market tends to move in tandem with the market leader.
Read this for more on Bitcoin’s recent rise:
Bitcoin Reclaims $63,000 After Massive Liquidation Scare
Learn more about OKX’s recent decision to pull the plugs on p2p trading in Nigeria:
OKX Latest To Fold in Nigeria’s War on Crypto, Pulls Naira P2P
