Price analysis 5/7: BTC, ETH, BNB, DOGE, XRP, ADA, DOT, BCH, LTC, UNI
May 7, 2021. Summarized by summa-bot.
Compression ratio: 17.4%. 2 min read.
Altcoins continue to rally higher and Bitcoin's repeat tests of the $58,000 level signal that bulls are building momentum.
Bitcoin is facing stiff resistance near the downtrend line but a positive sign is that the bulls have not allowed the price to sustain below the 20-day exponential moving average ($56,036).
If the bulls drive the price above the downtrend line and the $58,966. 53 resistance, the BTC/USDT pair could pick up momentum and challenge the all-time high at $64,849. 27.
On the contrary, if the price turns down from the current level and breaks below the 20-day EMA, the pair could drop to $52,323. 21.
However, after the recent run-up, the price is trading way above the 50-day simple moving average ($2,289), implying that the pair is over-extended in the short term.
If the bears sink and sustain the price below the 20-day EMA ($579), the short-term traders may rush to the exit.
Contrary to this assumption, if the price rebounds off the 20-day EMA, the bulls will try to resume the uptrend.
On the contrary, if the price turns down from the overhead resistance, it will suggest that traders are closing their positions on rallies.
The bullish momentum may weaken if the bears sink the price below the 20-day EMA ($0. 39).
Contrary to this assumption, if the price turns down and slips below the 20-day EMA, it will suggest that supply exceeds demand.
The bears tried to pull the price down today but the long tail on the candlestick suggests strong buying near the breakout level at $1. 48.
A strong bounce off this support will indicate demand at lower levels and the bulls will make one more attempt to propel the pair to $48. 36.
The bears tried to pounce on the opportunity and sink the price below the 20-day EMA ($38. 68) today.
Conversely, if the price again turns down from $45, the UNI/USDT pair may consolidate in a tight range for a few days.