Bitcoin’s price tagged $65,000 during the early Asian trading session on May 6 as the 50-day exponential moving average (EMA) held as BTC’s immediate support.
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair turned up from lows of $63,340 on May 6, rising 3.45% to an intra-day high of $65,523.
BTC is now approximately 15% above its two-month low of $56,500, reached on May 1 last week as concerns over the stagflation of the U.S. economy sent investors into a risk-off mode.
BTC’s recovery produced a bullish weekly candle that saw Bitcoin funding rates return to a “more neutral state after going negative at the end of last week,” market intelligence platform DecenTrader said in an X post on May 6.
“The dip below $60k spooked a lot of traders before the price rebounded.”
Data from Coinglass corroborates DecenTrader’s observations showing that Bitcoin’s funding rates on exchanges are now neutral after turning negative last week.
Negative funding rates, though infrequent, are typically seen as highly bearish indicators. Conversely, a neutral funding rate — around 0.025 per eight-hour period or 0.5% weekly — signals a reset in trader positions, reflecting a mixed sentiment in the market.
However, should Bitcoin turn down from its current levels, key support levels would come into play. These include the $57,000–$64,000 demand level (embraced by the 50-day EMA), which remains a “prime buy zone” for BTC, according to independent trader Ali Martinez.
Martinez shared the following chart from Glassnode showing that Bitcoin’s recent drawdown saw the market-value-to-realized-value (MVRV) ratio drop below its 90-day moving average.
In another X post on April 16, Martinez explained, “When the MVRV dips below the 90-day average, it signals a buying opportunity.”
Despite BTC’s latest ascent above $60,000, the Bitcoin MVRV momentum still satisfies this condition, meaning it is still an ideal point of entry into the asset.
“Despite # Bitcoin’s recent surge from $57,000 to $64,000, the MVRV 90-Day Ratio indicates that $BTC remains in a prime buy zone!”
Bitcoin whales’ conviction to buy the dip is “dwindling”
Responding to the market’s drawdown last week, Bitcoin whales took advantage of the entry into the “prime buy zone” and bought more BTC at discounted prices, according to on-chain data provider IntoTheBlock.
The analytics firm noted that addresses holding more than 1,000 BTC have “accumulated strongly in recent months” with every dip. However, since every accumulation period was shortly followed by a price increase, the whale accumulation has been “dwindling.”
In a May 6 post on X social platform, IntoTheBlock said:
“Prices have increased shortly following every accumulation. However, note that each spike in accumulation by these holders is smaller than the last.”
While this could mean that large investors have less and less appetite to buy the dip, it is still a positive sign as continued accumulation signals bullish sentiment among this cohort of investors.
