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Bitcoin and Ethereum Market Analysis – 10.05.2021

After rallying more than 100% in early 2021, Bitcoi seems to be struggling to turn the $58,000 level into support. The repeat tests of the $58,000 signal that bulls are building momentum as some Altcoins continue to rally higher. Though, still holding-on strongly, it remains in the range-bound and short-term traders view this as buying opportunities.

Bitcoin’s market dominance has fallen to just below 45% compared to around 70% at the start of the year, while the total cryptocurrency market capitalization now stands at a record USD2.4 trillion.

This nice consolidation of BTC may last more than expected as bears continue to aggressively push back at key overhead resistance levels. Notwithstanding, BTC is giving no hint of a deeper reversal under $56,000 key level.

The swing from Bitcoin to other coins – alt-coin season – is one of the best things we see, as Ethereum (ETH) continues to print fresh highs and eats into Bitcoin’s market dominance.

BTC daily chart, shows a bull trend up to 4-year cycle high in place even though there’s a stiff resistance from the bears trying to break the critical support at the 50-day MA. However, today’s Doji candlestick suggests the bulls are struggling to sustain the momentum at higher levels.

From the cycle point of view, we have a cycle high that is right translated and consolidating nicely. The chart shows a 15-20% reversal in every cycle of the last two; so expect a continuous consolidation on a short term frame.

The positive sign is that the bulls have not allowed the price to sustain below the 50-day MA ($56,036). This indicates that traders are buying on every minor dip.

The BTC/USDT pair has formed an inverse head and shoulders pattern that may complete on a breakout and close above $60,000. This bullish setup has a target objective at $72,000. If the bulls sustain the momentum and clear the hurdle before it, the uptrend may start the next leg.

Be patient here, the bulls still have so much to offer.

Pic.1: The BTC/USDT pair has formed an inverse head and shoulders pattern that may complete on a breakout.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

BTC weekly chart, shows BTC consolidating in every cycle low on a short term frame. The bulls are trying to resume the uptrend that could push the price to an all-time high.

In that regard, the critical indicator to watch is the EMA 8, which should hold Bitcoin’s price from dropping further. As long as BTC sustains above $56,000 area, the uptrend is intact and the massive run is likely to continue after this nice consolidation.

The EMA 8 is sloping up in the present cycle high, indicating that bulls still have a lot to offer. If you cannot handle your emotional state in an open position like this, please stay off. Stay strong, this is all about how you handle your positions and emotional state.

The bulls are still holding sway here.

  Pic.2 BTC consolidating in every cycle low on a short term frame. Source: bitcoin.live

Ethereum

Ethereum continues to make new higher highs with little seemingly in its path before $4,000. I wrote last week that ETH remains bullish, with the caveat of a period of a level of caution, but the move higher just continues unabated.

Ethereum looks unstoppable as it continues its stellar run.


 Pic.3 ETH in stellar run and a centimeter away from hitting $4k-ATH. Source:bitcoin.live

Top Takeaways

BTC – Waiting in consolidation
ETH – Breakout uptrend, looks strong – Biggest trade this year

🔴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