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Bitcoin and Ethereum Market Analysis – 13.05.2021

Bitcoin witnessed a sharp dump to $46,980.0 of nearly 7% in an hour after Tesla suspended its support for payments in BTC. This has made some investors to guess whether to buy the dips or close their positions in anticipation of further decline. Traders who were caught off guard through the announcement should keep a close watch on the strength in the recovery as that will provide an insight about the next possible move. From the day’s highest to lowest point, the price of Bitcoin dropped by almost 15% against the U.S. dollar in less than 24 hours.

Long-term, I’m still very bullish on Bitcoin and don’t believe that this announcement will significantly impact price or adoption. The Bitcoin’s dip below $50,000 was another good bullish buy-the-dip opportunity, a wonderful signal that, we should expect more rallies that could take BTC to clear more all-time highs.

The Altcoins indicator- Ethereum is trying to fend-off the bears after a rebound to sustain the bullish momentum in what I see as relative strength.

BTC daily chart shows, the bulls failed to hold the key level of daily MA 50 for the first time since the 10k area. However, the rebound suggests that buyers are attempting to stall further decline at $50,060. If the rebound sustains, the bulls will again try to resume the uptrend but they are likely to face stiff resistance between $58,825.84 and $61,849.27. A breakout of this resistance zone will suggest that the current fall was only a pullback to shake out the weak hands.

On the other hand, the failure to sustain the rebound or build upon the bounce in the next few days will indicate that demand dries up at higher levels. That is likely to invigorate the bears who will then try to assert their dominance and break the $46,460 support to cause damage.

Pic.1: The longest red candle shows that, the bulls failed to hold the key level of daily MA 50 for the first time since the 10k area.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

BTC weekly chart shows, a bit of volatility in the last one week, an outside bar indicating that, the bulls ran into resistance. The long red bar is a big force suggesting some indecisions and consolidations going on. BTC/USD’s technical posture was weakened, with the weekly EMA 8 being breached.

In that regard, the critical indicator to watch is the weekly EMA 8 resistance which should hold Bitcoin’s price from dropping further.

We have different possibilities to mentally prepare ourselves of any possible outcome. I still give it to the bulls.

Pic.2: A bit of volatility in the last one week indicating stiff resistance from the bears. Source: bitcoin.live

Ethereum
ETH/USD pair has done a little bit of shake-off here, after the price rebounded sharply and rose above the area support level at $3550 and that is very significant.

Ethereum pretty dip to our low entry level at $3550, rewarded patient buyers once again. For now, let’s see if $4000 area resistance can hold.I don’t see the bears breaking the $3550 support as the bulls are still strong here.

Pic.3: The chart shows a rebound off the area support level at $3550. Source: bitcoin.live

Top Takeaways
$BTC 47k area support EMA 8 resistance
$ETH $3550 area support $4000 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