Bitcoin’s price has surged past $62,000, fueled by the latest U.S. Nonfarm Payrolls report, which revealed a higher-than-expected unemployment rate of 3.9% for April. This unexpected data has led to increased speculation that the Federal Reserve might lower interest rates, making riskier assets like Bitcoin more attractive. The cryptocurrency's recent rally follows a rocky week and is further bolstered by Block’s announcement to allocate 10% of its gross profit from Bitcoin products toward monthly BTC purchases. As Bitcoin attempts to maintain its upward momentum, traders are closely watching key resistance and support levels to gauge the next potential moves.

Bitcoin Recovers Following A Rocky Week

The April U.S. nonfarm payrolls data fell significantly short of expectations, highlighting the labor market’s weaknesses that the Federal Reserve indicated could support a case for cutting interest rates. During a press conference on May 1, Fed Chair Jerome Powell stated, “We are prepared to maintain the current target range for the federal funds rate for as long as appropriate.” He added, “We are also prepared to respond to an unexpected weakening in the labor market.”

This disappointing nonfarm payroll report contrasts with other recent economic data, which had previously bolstered investor confidence.

Why Is the Crypto Market Up Today?

According to the most recent projections from the CME Group’s FedWatch Tool, the likelihood of a rate cut at the Federal Open Market Committee (FOMC) meeting in June is just under 15%. For the July meeting, the odds stand at 33% for a modest 0.25% reduction.

Bitcoin’s latest upswing was triggered by several factors including the Block’s latest announcement to purchase BTC. In its recent earnings report, Block disclosed its plan to allocate 10% of its gross profit from Bitcoin products toward monthly Bitcoin purchases. This might have strengthened the current buying momentum.

Leading analysts previously advised to keep an eye on the $62k level to see if Bitcoin could reclaim it. Ki Young Ju, founder of on-chain analytics firm CryptoQuant, mentioned that the area below $60,000 had been popular for “buying the dip.” He commented alongside a chart of active whale addresses that Bitcoin whales had accumulated 47K $BTC in the past 24 hours.

What’s Next For BTC Price?

Bitcoin price has been on a recovery rally after buyers strongly defended the $56K support line. In the last few hours, BTC price triggered intense buying pressure and broke above the $60K level. However, it faced slight downward pressure around $62K. As of writing, BTC price trades at $61,783, surging over 4.6% in the last 24 hours.

BTC price is currently attempting to surge above its 200-day EMA trend line, signaling the dominance of bulls over bears. Despite buyers’ efforts to reclaim ground above $65,000, bears may have different intentions. A retreat from this level would indicate a bearish resistance shift, potentially leading to a decline towards the 61.8% Fibonacci retracement level at $60K.

However, this bearish outlook could shift if the price successfully holds above $65K, initiating a rally toward $67K. As the RSI level now holds above the midline, the buying demand may continue to increase in the coming hours.

Key Resistance and Support Levels to Watch

The immediate market structure reveals a short-term contracting triangle with resistance near $62,500 on the hourly chart. A successful breach of this level, followed by surpassing the $62,850 resistance, could open the path towards the $65,000 and potentially the $67,000 benchmarks. Conversely, if Bitcoin fails to overcome the $62,500 resistance, it might trigger a correction phase, with key support levels positioned at $60,000 and $58,000. The latter represents a critical 50% Fib retracement level of the recent upswing, marking a pivotal point for bulls to defend to sustain the upward trajectory.

Technical Indicators and Future Outlook

Technical indicators paint a somewhat mixed picture. While the Hourly MACD is losing momentum in the bullish zone, the RSI (Relative Strength Index) for BTC/USD remains comfortably above the 50 mark, suggesting that the bullish sentiment is still in play. Nonetheless, traders should keep an eye on these indicators for early signs of a momentum shift that could influence the near-term market direction.

Conclusion

The recent price action in Bitcoin underscores the robust bullish sentiment among investors, with the cryptocurrency setting new highs and eyeing the $65,000 level. As rate cut expectations rise and, with it, expectations for a more Bitcoin-favorable liquidity backdrop, macro is a major tailwind for BTC right now. But BTC continues to also benefit from crypto-specific bullish narratives, such as an expected acceleration of institutional adoption and new buying pressure in the wake of spot Bitcoin ETF approvals in the US, which are expected to get the green light by early 2024.

A sharp rise in the assets under management of Proshares’ Bitcoin Strategy ETF, a Bitcoin futures-based ETF, to new all-time highs shows that institutions are already scrambling to gain exposure to Bitcoin. This institutional interest is likely to provide a strong foundation for Bitcoin’s price in the coming months.

Will Bitcoin Continue Its Rise? What's the Next Target for BTC?

While the leading cryptocurrency Bitcoin exceeded $62,000 after a long time, new high levels for BTC began to be discussed. At this point, while $65,000 levels are targeted for BTC, new predictions continue to come from analysts.

Another prediction comes from CryptoQuant analyst Mac_D, who said that the next target price for BTC could be $68,000. Stating that Bitcoin broke the average purchase price of long-term investors of 2-3 years, the analyst argued that the only price that can act as forward resistance for BTC may be $68,000, the highest level of the last cycle.

“Bitcoin has broken through resistance, which is the average purchase price for investors holding the 2-3 year long term, and bullishness looks likely for BTC. Realized Price – UTXO Age Bands indicator shows the average purchase price by BTC holding period group. According to this indicator, the level of $48,900, which is the average purchase price of long-term investors who invested in the last bull rally, is seen to be broken. In short, investors who began holding assets from the last cycle's bull rally saw the 2-3 year investor average purchase price of $48,900 act as strong resistance. However, in the last rise, this level was broken and the BTC price rose significantly, exceeding $55,000. However, the only price that could act as resistance going forward for Bitcoin would be the recent cycle high of $68,000.

“Going forward, US institutional investors will continue to increase buying pressure through spot BTC ETFs, and even if a crash occurs due to unexpected macro and crypto market events, it seems very likely that the Bitcoin price will recover like a spring.”

Bitcoin continues to trade at $61,783 at the time of writing.

$BTC Breaks 2-3 Year Long Term Holder Resistance Price, Upside Likely

“BTC price has rallied significantly, rising to $62K, the