Bitcoin price sets new May high above $29.5K as traders eye breakout

Bitcoin (BTC) eyed a reclaim of further lost ground on May 5 as $30,000 remained in play. 

BTC price action rebounds from stocks slump

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it spiked to $29,529 on Bitstamp - a new May high.

The pair had dipped with United States equities at the Wall Street open the day prior, but the weakness was short lived as $29,000 support returned.

Ongoing market jitters from the U.S. banking crisis, now impacting several regional banks, continued to shape observer sentiment.

What are we drinking this weekend, left or right bank? pic.twitter.com/Mp2yXcI2Fa

— Arthur Hayes (@CryptoHayes) May 4, 2023

“100% of all regional banks in the United States 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 Chair Jerome Powell said the US banking system was stronger than ever.”

Financial commentary resource, The Kobeissi Letter, considered the potential for the fallout to continue to ripple outward.

"Today is the first day since March that markets are taking the banking crisis seriously," it argued as stocks and crypto fell.

"S&P 500 is down over 100 points from its high this week while regional banks are at fresh lows. At first, it appeared the crisis was isolated. Perhaps this isn’t as isolated as it seemed."

After the Federal Reserve raised interest rates this week, market expectations nonetheless pivoted to predicting an end to the hiking cycle. According to CME Group's FedWatch Tool, the next rate decision, due in mid-June, will not result in another shift higher.

Trader: $32,000 "best case" for Bitcoin

When it came to BTC price action, traders eyed the potential for a closer rematch with $30,000 and higher.

Related: BTC price may need a $24.4K dip as Bitcoin speculators stay in profit

$BTC / $USD - Update

Playing around with ideas at the moment on #Bitcoin .. Now i do not use these sort of trend lines often, but i cannot ignore this one as coincides nicely with the range high i am looking for us to hold

Best case we tap range $32,000 and dump pic.twitter.com/1J7JfGzCvg

— Crypto Tony (@CryptoTony__) May 5, 2023

Popular trader Alan, known as Trader Tardigrade, was optimistic over upside continuation which could mimic its breakout from late 2020.

“Bitcoin has entered the phase of ‘Storing of power,’” he told Twitter followers alongside a comparative chart.

“This is for the preparation of the incoming Bull Run.”

On shorter timeframes, fellow trader Ninja set more conservative levels to return as support.

“Bulls should hold above $28.9-$29k...the quicker they reclaim above $29.2k the better,” he wrote in part of fresh analysis.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.