Bitcoin price correction 'very common' if $56K lows hold — Peter Brandt

Bitcoin ( BTC ) tagged $59,000 into the May 2 Wall Street open as swing lows held as a BTC price floor.

BTC/USD 1-hour chart. Source: TradingView

BTC price heads toward $60,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD acting closer to the key $60,000 zone.

After falling to $56,500 the day prior, Bitcoin received a boost from dovish economic guidance by the United States Federal Reserve.

As it left interest rates predictably unchanged, Fed Chair Jerome Powell reinforced plans to cut them at some point before the end of the year.

“We know that reducing policy restraint too soon or too much could result in a reversal of the progress we have seen on inflation,” he said during a subsequent press conference .

“At the same time, reducing policy restraint too late or too little could unduly weaken economic activity and employment.”

Risk assets reacted well to the event, and BTC/USD continued to display relief after precipitous sell-side pressure earlier in the week.

“If Bitcoin can hold these lows and move higher the chart will qualify as a very common bull market continuation chart construction,” veteran trader Peter Brandt told followers on X (formerly Twitter).

BTC/USD chart. Source: Peter Brandt/X

Earlier, Cointelegraph reported on the current BTC price pullback from new all-time highs being still mild compared to historical bull markets.

“Welcome to a more middle of the road Bitcoin bull market correction. P.S. it has been much worse literally every other bull cycle,” Checkmate, the lead on-chain analyst at Blockchain data firm Glassnode, confirmed alongside an explanatory chart.

Bitcoin bull market drawdowns. Source: Checkmate/X

Bitcoin RSI hits key buy level

Others meanwhile looked ahead with an eye to the BTC price bounce continuing.

Of particular interest on the day was Relative Strength Index (RSI) data, which on daily timeframes sought to bolster a fledgling bullish narrative.

Daily RSI was at its lowest levels since August 2023 — a time at which BTC/USD was also violating key support trendlines before it reclaimed them and headed to new highs.

“Buying Bitcoin when the Daily RSI has hit ~30 has been a pretty solid strategy so far this cycle,” popular trader Daan Crypto Trades wrote in part of an X post on the topic.

BTC/USD chart. Source: Daan Crypto Trades/X

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