Bitcoin (BTC) Price Analysis – May 6
Another price level has been set for Bitcoin after surpassing the critical $5600 which has now become a support level. A drop below the mentioned support could send BTC price to around $5400 and below. Meanwhile, $ 6000 lies ahead for the bulls.
BTC/USD Long-term Trend: Bullish (1D chart)
Resistance levels: $6000, 6200
Support levels: $5200, $5000
Moving higher, Bitcoin is now clearly revealed above the daily 200-day moving average (pink) as the 50-day moving average supported the price action. The market is forming a higher high, higher low pattern.
A lower low is likely at $5200 support. Beneath this support lies $5000. On a higher high, the next key resistance levels are $6000 and $6200.
However, buyers are gaining control of the market. If they eventually lose control of this market, BTC may run a correction to a tight area of $4500 – $4400 before the bullish rally continues. Otherwise, we may see a more positive move in future trading.
As of now, Bitcoin is still maintaining a bullish sentiment. There’s a need for a slight pull-back for the market to refuel a bull-run.
BTC/USD Medium -term Trend: Bullish (4H Chart)
Looking at the 4-hours chart, Bitcoin remained in a bullish trend. Last week, the market went up by 5% above the initial April high; BTC price jumped and recorded a new price at around $5840 on Bitstamp.
After touching the mentioned price, the leading cryptocurrency has been hovering between $5600 and $5800 in the last three days of trading.
While consolidating, a big move is around the corner as Bitcoin may switch price to another level which is yet unknown. As revealed on the RSI, the most likely move is bearish which could test quick support levels of $5400; testing the blue 50MA and possibly $5200; where the pink 200MA lies.
And if rally furthers, the ultimate target would be $6000. However, the bullish momentum is supported by the 200MA against a bear spike.
Please note: Cryptovibes.com is not a financial advisor. Do your own research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.