For a month now, the cryptocurrency markets have been developing significant ascending momentum.
As a result, we’ve been wondering what the next big thing is.
It was not until this week that we learned the upwards momentum was finally extended when the price of Bitcoin quickly surged to new highs near the $6,000 mark before it settled slightly lower again.
Despite the inability to break above the $6,000 line, Bitcoin remained bullish for the entire past week. The price traded to a new 2019 high.
The technical indicators are flashing bullish signals, which makes it very likely for the coin to reach the $6,000 mark.
If this happens, it will signify another victory for the bulls that had not repeated for almost six months.
November 14, 2018 is the last time Bitcoin reached that prefix.
As usual, Bitcoin had gone through typical volatility, all of which we are going to cover in the following text.
Still #1, Bitcoin reached a dominance of 56.3 percent this week and a market cap of $104.3 billion. This week, the total market cap reached $185.3 billion.
Bitcoin Price: Weekly Chart
Since last week’s price analysis, we think it’s safe to say things have changed. In the bigger picture, such variations may not be considered drastic changes, but still represent a bear defeat another week in a row.
This weekly Bitcoin price chart is an excellent opportunity to display and understand the successes the bulls achieved in the past seven days.
Looking at the market charts, it is clear that Bitcoin’s price corrected lower sharply and endured minor falls.
Starting from last Wednesday, May 1, the price of Bitcoin was found at $5,374.
That ultimately made the lowest point of this week. From then on, the price was only seen rising up.
While we were wondering whether the Bitcoin bulls would be successful at guarding the existing levels of support, they reached for new, higher ones.
With the start of the weekend, Bitcoin’s price surged rapidly and breached the resistance that lied at $5,800.
On Friday, Bitcoin was found at an exact price of $5,864 against the U.S. Dollar.
It was a small but significant victory that the level of resistance found at $5,500 was already surpassed, and we expected the bulls to only keep pushing up.
During the weekend, the price was mainly stable, fluctuating and retesting lower support levels again.
On Saturday, May 4, the price fell to $5,665 but it was not critical. The bulls gained traction soon and the price started rising all over again.
The weekends, as we already know, are the best time for trading, and even though the price was below the $5,800, Bitcoin remained well bid.
On Tuesday, May 7, Bitcoin bulls pushed their hardest and managed to bring the coin above the $5,900 line.
As mentioned before, this is something we have not seen in a while. Tuesday’s price of $5,955 against the U.S. Dollar makes the highest point of this week.
This success made us curious about whether Bitcoin will finally reach $6,000 and on to higher positions.
At the time of writing, Wednesday, May 8, Bitcoin has a price of $5,876, which only means the bulls failed to reach another milestone.
Due to this, the coin settled at an already-familiar lower region.
In short, we can say that Bitcoin had a good week this time around. Even though the price did not reach the $6,000 target, it still improved a lot.
Over the past seven days, the bulls overcame the biggest resistance they had for weeks now, found around $5,800.
At the same time, new levels of support are currently being formed at a much higher rank, around the $5,700 line.
Bitcoin Price: Daily Chart
Displayed on the daily chart, Bitcoin’s price shows a lot of turbulent movements.
While last week’s daily chart showed a progressive course, this week we can actually spot the number of fluctuations the price of Bitcoin went through.
The daily volume, another week in a row, is not significant; therefore, a breakout is not expected in neat time soon.
The daily chart’s RSI is again bullish and now faces resistance at level 74. It previously tested level 70 support and strived for higher levels.
About to produce a crossover, the Stochastic RSI is expected to enter the overbought territory.
Bitcoin Price: 4-Hour Chart
Within smaller time periods, there was a break spotted on the BTC/USD pair chart.
It was seen below the connecting bullish trend line with a support level near $5,840.
Spiking even below the $5,700 line, the pair had a 100 hourly simple moving average.
The 76.4 percent Fibonacci retracement level of the last wave was tested starting from $5,563 low finishing at $5,962 high.
The relative strength index for the BTC/USD pair on an hourly basis showed it is moving gradually higher. This signifies a potential of break above level 50.
The hourly MACD (Moving Average Convergence Divergence), although having a few positive signs, is currently placed in the bearish zone.
As of now, followed by $5,560, the major support level is at $5,740.
The major resistance levels can be found at $5,840, $5,900 and $5,600.
The technical indicators are forward-looking, and the rapid upwards surge strengthens the case for a potential bull run.