Bitcoin price sets new May high above $29.5k as traders look out
Bitcoin (BTC) saw a recovery of further lost ground on May 5 when $30,000 remained in play.
The BTC price recovers after the share decline
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it surged to $29,529 on Bitstamp – a new May high.
The pair had fallen with US stocks at the Wall Street open the previous day, but the weakness was short-lived as support at $29,000 returned.
Ongoing market turmoil from the US banking crisis, now affecting several regional banks, continued to shape observers’ sentiment.
“100% of all US regional banks have their stocks in the red today, for the first time ever,” crypto media account Whalewire noted on Twitter.
“This comes a day after Federal Reserve Chairman Jerome Powell said the US banking system was stronger than ever.”
Financial commentary resource, The Kobeissi Letter, assessed the potential for the fallout to continue to ripple outward.
“Today is the first day since March that the markets are taking the banking crisis seriously,” it argued as stocks and crypto fell.
“The S&P 500 is down more than 100 points from its high this week, while regional banks are at fresh lows. At first, the crisis appeared to be isolated. Maybe this is not as isolated as it seemed.”
After the Federal Reserve raised interest rates this week, market expectations nevertheless turned to predicting an end to the hiking cycle. According to the CME Group’s FedWatch Tool, the next rate decision, due in mid-June, will not result in another move higher.
Trader: $32,000 “best case” for Bitcoin
When it came to BTC price action, traders saw the potential for a closer rematch at $30,000 and higher.
Related: BTC Price May Need a $24.4K Drop as Bitcoin Speculators Stay in Profit
Popular trader Alan, known as Trader Tardigrade, was optimistic about the continuation of the upside that could mimic the breakout from late 2020.
“Bitcoin has entered the ‘storage of power’ phase,” he told Twitter followers along with a comparative chart.
“This is for the preparation of the upcoming Bull Run.”
On shorter time frames, fellow trader Ninja set more conservative levels to come back as support.
“Bulls should hold above $28.9-$29k…the sooner they get back above $29.2k the better,” he wrote part of recent analysis.
Blade: Unstable coins: Depegging, bank runs and other risks loom
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making a decision.
