Summary
- Bitcoin rose above $80,000 and extended its upward trend even as expectations for US rate cuts weakened.
- The market view is that Bitcoin is being reevaluated as an inflation hedge while also moving in line with the stock market rally.
- Some analysts cited $81,500 as a short-term resistance level and the area around $84,000 as the key zone for judging whether further gains can continue.
Forecast Trend Report by Period
Bitcoin is extending its gains even as expectations for US interest-rate cuts fade, adding to the view that macro factors are exerting less influence on the cryptocurrency.
CoinDesk reported on May 5 that major global financial institutions are increasingly scrapping forecasts for rate cuts this year. Rising energy prices and geopolitical tensions in the Middle East are adding to inflation pressure, bolstering the case for higher rates to remain in place for longer.
Even so, Bitcoin stayed above $80,000 and preserved its upward momentum. While higher rates typically weigh on risk assets, that correlation has weakened recently.
Some in the market see Bitcoin being reevaluated as an inflation hedge. Others interpret the move as tracking the broader rally in equities.
In the short term, key technical resistance levels are in focus. Some analysts identified $81,500 as near-term resistance and the area around $84,000 as the key zone for determining whether the rally has further room to run.
CoinDesk said Bitcoin is nearing the upper end of its rising channel and has reached a critical technical juncture. A break above that range could play a major role in determining the next direction of prices.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
