Bitcoin recovers from oversold territory: Is this a dead cat bounce?

Bitcoin reached a fresh multi-month low of $59,200 on Friday, following the release of a stronger-than-expected U.S. nonfarm payrolls report. May payrolls significantly exceeded expectations, with 172,000 new jobs added compared to the anticipated 80,000, while the unemployment rate remained steady at 4.3%. After the sharp decline, Bitcoin (BTC/USD) recovered some ground over the weekend.

The world’s largest cryptocurrency rebounded to nearly $64,000 after reaching a demand zone that previously supported a recovery in February. However, the broader outlook remains tilted to the downside amid ongoing geopolitical uncertainties and a hawkish Federal Reserve stance, which continue to weigh on cryptocurrencies.

Bitcoin Enters a Critical Week

As investors prepare for a potentially volatile trading week, attention is focused on the economic calendar for key events that could influence market sentiment and investment decisions. Highlights include the May U.S. CPI inflation report and the University of Michigan consumer sentiment index. These releases are expected to provide insights into the Federal Reserve’s monetary policy trajectory, potentially triggering significant volatility in the cryptocurrency market. Furthermore, several central bank officials are expected to deliver remarks on monetary policy throughout the week, making it essential to monitor live headlines for further insights.

$BTCUSD Technical Outlook

From a technical perspective, the daily chart shows that Bitcoin briefly fell below the $60,000 level, forming a low near $59,000, before beginning to correct losses. If Bitcoin can maintain support above this recent low, there remains potential for a relief rally. In the short term, the immediate resistance level is near $64,000. A break and close above this level could propel the market toward the $65,000–$65,500 range.

Conversely, the bullish outlook would be invalidated if Bitcoin breaks below the $61,000–$60,000 support zone and sustains that level. A return below $60,000 would likely negate short-term recovery prospects and signal continued downside momentum.

 

Warning! This material is not intended as investment advice. Past performance data does not guarantee future returns. Investing in foreign currencies may affect your returns due to their fluctuations. Any transaction in securities may result in both profits and losses. The assumptions and expectations set forth in this material are only estimates that may not be accurate and may change depending on current economic conditions. These statements do not guarantee future returns.