Bitcoin has surged close to its all-time high, invigorating market bulls and drawing widespread investor interest.
Key points:
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Bitcoin maintains recent gains, edging closer to its historic high of $109,588.
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BlackRock’s Bitcoin ETF experiences strong inflows, sustaining a 19-day streak of demand.
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Several altcoins show resilience, breaking out of significant basing patterns.
Bitcoin (BTC) has made a pivotal move, crossing the significant $100,000 mark this week, a clear signal that the buying interest is robust. Traders are eager to sustain the 10% increase seen over the past week as the weekend approaches.
This surge is bolstered by consistent inflows into BlackRock’s spot Bitcoin ETF (IBIT), which recently reached $1.03 billion in a notable 19-day inflow streak according to data from Farside Investors.
Crypto market data daily view. Source: Coin360
This rally isn’t limited to Bitcoin; numerous altcoins are also witnessing upward movement, prompting analysts to declare the potential onset of an “altseason.” However, skepticism remains as many altcoins have yet to recover fully from previous highs.
As we consider whether Bitcoin can break its all-time high and sustain its position, it’s imperative to analyze the charts of various cryptocurrencies that may show upward momentum shortly.
Bitcoin Price Outlook
Bitcoin is steadily approaching the all-time high of $109,588, illustrating that bulls are not rushing to take profits.
BTC/USDT daily chart. Source: Cointelegraph/TradingView
The recent rally has pushed the relative strength index (RSI) into overbought territory, indicating a potential consolidation or correction ahead. Expected pullbacks should find support between the $100,000 mark and the 20-day exponential moving average ($96,626). A rebound from this support zone could significantly enhance the chances of breaking above $109,588.
The momentum is crucial for bulls, as the pressure mounts. Should bears try to reverse the trend, successfully pushing below the 20-day EMA could lead to a drop towards the 50-day simple moving average ($88,962).
The upward trajectory is not without challenges; bears are likely to defend the $107,000 to $109,588 range fiercely. Should the price decline from this resistance zone, the 20-EMA is anticipated to act as a robust support level. A bounce here would suggest the continuation of bullish momentum, increasing the probability of a break above the historic high.
Conversely, sellers must maintain pressure beneath the $100,000 threshold to weaken bullish sentiment, opening the path to $93,000 and potentially to $83,000.
Ether’s Resurgence
Ether (ETH) witnessed a significant increase, climbing from $1,808 on May 8 to $2,600 by May 10, reflecting robust buying activity.
ETH/USDT daily chart. Source: Cointelegraph/TradingView
This uptrend has pushed the RSI into overbought territory, suggesting a possible minor pullback or consolidation phase. Initial downside support exists at $2,320, followed by $2,111. If the price maintains strength from these levels, the ETH/USDT pair could target $2,850 and subsequently $3,000.
A shift in the bullish outlook could occur if prices fall below $2,111, which might confine the price range to between $1,754 and $2,600, causing traders to reassess their positions.
The bulls did manage to push prices above the $2,550 resistance, but sustaining those levels remains challenging. They have held their ground like a bulwark against bearish pressure, anticipating further upward movement. A rebound from the current 20-EMA level and a breakthrough past $2,609 could catapult prices toward the $3,000 mark.
A deeper correction might materialize if the asset continues its downward trend below the 20-EMA, potentially dragging prices down towards critical support at $2,111.
Dogecoin Market Trends
Dogecoin (DOGE) surged past the $0.21 resistance level on May 10, indicating a potential shift in market dynamics.
DOGE/USDT daily chart. Source: Cointelegraph/TradingView
This upward movement has faced resistance around $0.26, leading to speculation of another test of the breakout level at $0.21. A strong rebound from this key level would signify a shift in investor sentiment from selling on rallies to buying on dips, consequently heightening the chances for a rise to $0.31.
In a defensive effort, buyers would need to keep prices above the 20-day EMA ($0.19) to forestall a drop. A breach below this mark could see DOGE fluctuating within a broader range of $0.26 to $0.14.
DOGE/USDT 4-hour chart. Source: Cointelegraph/TradingView
Should the price pull back from $0.26, it has immediate support at $0.22, followed by $0.21. A strong bounce from any of these levels would suggest ongoing bullish sentiment. Bulls would likely attempt to regain control by pushing the price higher than $0.26, continuing the upward trend started earlier.
A substantial drop below $0.21, however, would denote panic selling, likely driving the price down towards the 50-day SMA.
Conclusion
In summary, Bitcoin’s rapid ascent is substantiated by commendable inflows indicating renewed investor interest, while altcoins are showing initial signs of strength. Sustaining this momentum could pave the way for new price records in the cryptocurrency space. To stay updated, investors should monitor critical support and resistance levels across major cryptocurrencies as market dynamics evolve.
