- Bitcoin is trading above April highs at $5,650 showing potential for more gains to the upside.
- The bears are present but the bulls are slightly in control.
Yes, Bitcoin retraced from the levels close to $6,000 and tested the levels below $5,700 just before the opening of the session on May 8. The declines caused by the news of Binance exchange being hacked and losing more than 7,000 BTC. Such a hack attack on a large exchange could have sent BTC/USD spiraling massively but the bulls bounced back to show that they cannot be defeated by bad news in the industry.
The all-time market leader is trading at $5,861 on Coinbase after trending up 2% on the intraday charts. Bitcoin is down 0.34% from the same time yesterday. Despite the lower correction, Bitcoin is trading above April highs at $5,650, which means that the digital asset is still in a bullish mode and trend. Besides, trading higher lows and higher highs is still a possibility as long as the focus stays not only on $6,000 but beyond.
Interestingly, Bitcoin still has a long-term bullish bias. Meanwhile, the price has corrected above 21EMA and pushing for a move that could soon touch $5,900 and extend to $6,000. On the downside, the sellers have not shown their presence in the market which means that the bullish momentum could be a temporary situation and Bitcoin close the week below Tuesday lows at $5,569.9 especially if the break above $6,000 does not occur soon enough. Similarly, the hack on Binance exchange although not impactful on BTC/USD could soon catch with the price much later.
BTC/USD 2-hour chart
The 2-hour chart shows Bitcoin having lost the momentum to correct significantly upwards. The bears are present but the bulls are slightly in control. Which means the 21EMA support is still in danger at $5,800. The RSI is still slopping upward above the trend line but has not been able to re-enter the oversold since May 3. The MACD in the same range is moving horizontally at +26.16 to show that the price is likely to move sideways above $5,800 support and the upside capped at $5,900 in the sessions to come until Thursday 7.
Bitcoin Key Technical Indicators
EMA21 2-hour: $5,813.75
RSI 2-hour: About upward sloping trendline – bullish incline.
MACD 2-hour: +26.16 (horizontally ranging).
Support areas: $5,800, $5,700 $5,600
Main support zone: $5,000 – $5,100.
Resistance levels: $5,900 and $6,000.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige