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Bitcoin and Ethereum Market Analysis – 06.05.2021

Bitcoin is trying to stage a comeback in order to catch up with the spectacular price action seen in Ethereum and other altcoins. This shows that institutional investors are viewing the current weakness in Bitcoin as a buying opportunity.

We believe that, if Bitcoin (BTC) does not break above $60,000 within the next few days, the momentum signals could weaken “for several weeks, given their still-elevated level.” Such scenario could be part of a normal market cycle and that will not alter the long-term target of $150,000 for Bitcoin.

Although Bitcoin is struggling to find enough momentum to clear the $58,000 level, Ethereum is pushing toward a new high and prompting several altcoins to rally.

Ether (ETH) has been the star performer among major cryptocurrencies in the past few days as its rally has continued unabated. The second-largest cryptocurrency by market capitalization crossed the $3,500 today sending projects market cap to $381.6 billion.

Looking at the BTC daily chart, we see the bulls have pushed the price above the MA-50 today and they will now try to challenge the downtrend line and the overhead resistance at $58,966.53. A breakout of this resistance zone will clear the path for a possible retest of the all-time high at $64,849.27.

Yes, we’re just a little above the MA 50 but not convincingly above; we need to see the $58,966.53 level clearly recaptured, otherwise, the BTC/USDT pair could stuck between $52,323.21 and $58,966.51 for coming days. This the flattish moving average and RSI near the midpoint suggest a balance between supply and demand.

Let’s hope that, the bears will not gain the upper hand to plummet the price below $52,323.21. Such a move will suggest weakness and that could result in a decline to the critical support at $46,985.

Pic.1: The $58,966.51 resistance level must break for the next leg of the rally to continue.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

BTC Weekly chart shows, a recovery at the key level-$56500, even though, the bulls are struggling to sustain the price above $58,000.

Let’s hope, the bears will not make one more attempt to sink the price below the EMA 8. If they succeed, the BTC/USDT pair could start a correction to $52,323.21 and then to $50,460. A bounce off this level could keep the pair range-bound for a few more days.

Alternatively, if the bulls defend the EMA 8, it will signal strength. If the buyers can sustain the price above $58,000, the pair could start a gradual climb to the overhead zone. The next leg of the uptrend may start after the pair rises above $64,849.27.

The sloping of the moving averages is suggesting that, the bulls have the upper hand.

Pic.2: The EMA 8 is still holding on well, indicating a bull market. Source: bitcoin.live

Ethereum
What else can we say. Incredibly strong. We will not chase, rather we will wait for a dip and buy the weakness. $2550 would present a good short term R/R. The uptrend remains intact as we could see from the strong rebound today.

Ethereum is in a momentum-driven uptrend at the moment.

Pic.3: A horizontal resistance level-$2563.0 has been cleared paving way for the next leg of the rally. Source: bitcoin.live

 

Top Takeaways

$BTC $53500 area support / $58,966.53 resistance

$ETH $2550 area support / $3500 area resistance

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service