BTC has rebounded overnight after bouncing off the $56k support level. I would still carefully monitor the charts over the next few trading days since BTC has lost support at the bottom of the bull pennant. If BTC does start trending up the white trendline and $61k resistance level will be important to monitor for resistance on the way up. The white trendline gives a price target around $60k, but will gradually change over time.
Bitcoin Rebounds After Entering Fear Territory
The crypto fear & greed index has entered fear territory yesterday. The two previous times that the crypto market entered the neutral or fear territory have resulted in strong bullish rallies. Bitcoin has already rebounded from the $56k lows, and is back above $59k in less than 24 hours. I think this sharp price decline has allowed the crypto fear & greed index to have a quick correction, and has created buy demand for crypto around $56k-$60k price levels. I remain bullish on May and I would monitor $60k and $61k price levels on the way up to see if the lost bull pennant support level acts as resistance.
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