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Bitcoin Analysis for May 3rd, 2021

Bitcoin this morning looks to be continuing the recovery from the low set on April 25th although on the short-term time frames there are some indications that momentum may be waning a bit. Looking at the 4-hour chart you can see that each successive bounce BTC has made has decreased in size as BTC is struggling through an area of heavy volume congestion. There is a high volume node sitting right about at $59k, if BTC can push through this we should see another nice surge higher.

Bitcoin 4-hour Chart

You can also see this by looking at the daily chart, BTC is moving through an area of heavy volume congestion (Resistance). It has actually pushed above the point of control (the highest volume node) so now that area should act as support if BTC drops back down there.

Bitcoin Daily Chart

Looking at the daily MACD indicator we can see that it is moving upward from an extremely low point, which was from the price low set on April 25th. So far the daily momentum is looking good but I will be watching for signs that indicate it is diminishing.

Bitcoin Daily MACD Chart

Bitcoin Weekly Chart

Zooming out to the weekly time frame I like that BTC has regained the 7 EMA. We can see that the pattern has flattened out into what I believe is a consolidation pattern. Consolidation patterns can act as a continuation pattern or a reversal pattern, it all depends on which way the price breaks. I'm hoping that the break will be to the upside but we will just have to wait and see.

Bitcoin Monthly Chart

Zooming out even further to the monthly time frame, I have to say that I am not a big fan of last month's candle. I may be wrong but to me, it looks like a reversal candle. Now that doesn't necessarily mean that this is the peak of this bull market it could just mean that we might see BTC pull back a little more here. It could just indicate a pause and some sideways price action also. BTC is extended above the 7 EMA quite a ways so a little pull back or sideways pause is reasonable in my opinion.

Bitcoin Dominance vs Altcoin Dominance

I also want to add that altcoins as of late have really been ripping higher and stealing the spotlight from bitcoin. As you can see in the chart above altcoin dominance (green) has been on the increase while bitcoins dominance (orange) has been falling. Unless bitcoin really has peaked for this bull market cycle I would expect a bounce in the bitcoin dominance and a drop in the altcoin dominance. At this time I don't really believe we have seen a cycle price peak for bitcoin so I am still expecting the BTC dominance bounce.



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