Bitcoin Recovers Amid High Inflows: Highlighting Key Resistance Levels and Altcoin Breakouts
Summary:
Bitcoin experienced a wave of fluctuation last week and managed to close above $64,000 from a week's low of $56,500. The market sentiment continues to be optimistic with substantial inflows observed in Bitcoin exchange-traded funds. The report also analyzes crucial resistance levels for Bitcoin and altcoins, pointing out that Bitcoin could rise to $80,000 if it manages to surge past the 50-day SMA. It assesses the liveliness in the venture capital investment and currency indexes, besides providing insights into the price action of altcoins like Ether, BNB, Solana, XRP, Toncoin, Dogecoin, and Cardano.
Last week, Bitcoin (BTC) experienced a wave of fluctuation. From a week's low around $56,500, it managed to close above $64,000, a nominal rise of about 1.5% from the preceding week. This reveals that the overall market sentiment continues to be optimistic, with purchasing activity at lower BTC price points. Farside Investors report net inflows into the spot Bitcoin exchange-traded funds of $378 million, recorded on May 3. Notably, the Grayscale Bitcoin Trust ETF saw its first inflow since its launch in January, valued at $63 million. Though too early to draw conclusions, these aggressive purchases might signal an end to consistent selling in the GBTC.
Coin360 data on daily cryptocurrency market performance offers insight into venture capital investment. Exceeding $1 billion in March and April consecutively, VC funding, which has been buoyed by Bitcoin's recovery in 2024, has not seen the likes of such numbers since October and November of 2022. This report will also analyze crucial resistance levels for Bitcoin and altcoins based on chart movements.
Analysis of the S&P 500 Index price reveals a struggle for bears to maintain the index below moving averages, which hint at consistent buying at reduced levels. A price kept above a 50-day simple moving average (5,131) could signal that the correction phase has ended. Strong selling from bears is expected to meet a rally to the all-time high of 5,265. A sharp downward turn from 5,265 could lead to a range-bound index for a couple of days.
The U.S. Dollar Index (DXY) fell from the 106.50 overhead resistance on May 1, reflecting strong defense from bears. The pull towards the 20-day EMA (105.43) on May 2 by the bears was further dragged to the 50-day SMA (104.56) the next day.
Bitcoin managed a surge above the 20-day EMA ($63,556) but was held back from surpassing the 50-day SMA ($65,937). Bitcoin, currently within the $56,500 to $73,777 range, may attempt to surge past the 50-day SMA, which could result in augmented buying and push BTC to $73,777. If that support collapses, the next leg of the uptrend could rise to $80,000.
Ether (ETH) broke past the 20-day EMA ($3,143) on May 6, indicating strong selling. attempt to drag the price to the critical $2,850 support level. If the price is able to cross the current level resistance line, it could signify a likely trend change, leading to a rise to $3,730.
BNB (BNB) crossed the moving averages on May 3, indicating a bull-controlled market eyeing the $635 resistance. If they can break the $635 resistance, the price could climb to $692. The bears will have to manage to hold the price under $495 to take back control.
Solana (SOL) has been trading within a range of $126 and $162 for several days. If it crosses the 20-day EMA, the price can rally to the $162 resistance.
XRP was pushed above the 20-day EMA ($0.53) on May 6 by bulls, indicating a possible end to the correction phase. If the price crosses the 50-day SMA ($0.56), the price can rise to $0.67.
Toncoin (TON) exceeded the moving averages on May 3, showing that lower levels are enticing significant purchases from bullish investors. The price might reach between $6.13 and $6.49.
Dogecoin (DOGE) faces resistance at the 50-day SMA ($0.17). If price maintains above the 20-day EMA, bulls can aim at the 50-day SMA. If successful, the price can rise to $0.21, otherwise, it could fall to $0.12.
Cardano (ADA) faced resistance at the 20-day EMA ($0.47) again on May 6. If the price crosses the 20-day EMA, it could rise to $0.57.
Published At
5/6/2024 10:30:00 PM
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