Bitcoin Price Pumps and Holds at $6.3K

In a day of remarkable Bitcoin (BTC) price action, the leading crypto hangs in midair following pump after pump. Defying reasonable expectations, the crypto refuses to budge despite having entered a dense and potentially hostile region of resistance.

10 may bitcoin pa(source: TradingView.com)

The composition of the resistance zone, above red, took nearly a year of retesting to break on the downside. It is thus difficult to believe that it will be quickly broken now. (Not financial advice; anything is possible, especially with Bitcoin!)

We can see on the hourly chart below (Kraken chart) that Bitcoin is trending well above its moving averages; and also that volume is clearly dropping during the dramatic price rises of the past couple of days - suggesting that a correction is possible.

10 may bitcoin pa(source: TradingView.com)

Having said that, however, strength on the Relative Strength Index (RSI) is still holding up remarkably well. On the hourly (below) and 4H charts, strength has held and risen, respectively, on the latest two price pumps. Incredibly, this may suggest that Bitcoin can maintain its current position above $6,000.

10 may bitcoin pa(source: TradingView.com)

It may now be time to start eyeing altcoins. Alts have been thrashed, as is typical, during the Bitcoin mini-bull rally of the past couple of weeks, and their extremely depressed prices present juicy buying opportunities - if such buys are carefully timed.

btc10may4.png(source: TradingView.com)

Bitcoin dominance, a key indicator for the altcoins’ prospects, is approaching a key resistance at about 61%. If we see this resistance hold, it might mean some reinvigoration for altcoins. At least one popular altcoin, BAT, has rebounded hard in the last days, exploding as much as 32% against Bitcoin (so, even more versus USD).

10 may bitcoin pa(source: CryptoCompare)

Things look good on the whole.

 

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.