Will Altcoin Profits Flow Into Bitcoin? (May 6 Forecast)
Bitcoin rallied on Wednesday, breaking a bearish two-day streak and rallying up to $58K before closing the daily candle around $57K. This is a bullish reaction and very much needed as BTC needed to find support at the 50 Day EMA else face jeopardizing the short-term uptrend.
(May 5, 2021 8:30PM EST)
Short-Term:
Bitcoin recovered nicely on Wednesday, bouncing off the 50 Day EMA and putting in a higher high relative to yesterday's bearish candle. This is exactly the sort of candle we needed to maintain this short-term technical uptrend; now we need continuation. Another bullish candle and higher high would be ideal, as it looks like Bitcoin may be looking to make another move up to $60K in the near-term.
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. May has proven to be a very bullish month for ETH as well as some other altcoins of note, which is great for the larger crypto space, however these altcoin rotations are typically short-lived and usually precede a retracement while capital rotates back into BTC, lifting its price back up. This is our primary view going forward.
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However, if BTC were to fall below the 50 Day EMA again, then this would, of course, be bearish and break the short-term uptrend, sending us back down to the low $50,000s to retest support, and possibly slip lower. While I think the downside is limited given the myriad of bullish fundamentals and the overarching technical uptrend, the possibility remains and we can't rule it out entirely.
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RSI has recovered a bit and risen to about 53 on the daily chart, putting in a slightly higher high as we look to be in a re-accumulation zone following the mid-April selloff.
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Support: 50 Day EMA around $53,760, then $50K.
Resistance: $60K, then $70K, $80K, then $100K.
[](Buy Bitcoin here.)
Posted Using LeoFinance Beta