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Bitcoin Update for May 8th, 2021

Since breaking through the last resistance level bitcoin has turned up the spice level. It is now challenging the next resistance level. We should know shortly if bitcoin can break through this resistance level on the first try or if it will be rejected. Also, the $60k barrier sits just above and has proven to be very difficult for BTC to push above. After setting the all-time high back on March 13th at $61,788 (Coinbase) then dropping back below $60k, it took BTC almost a month and multiple rejections before it was finally able to push above it again on the way to the current all-time high. We will also most likely find out over the next few days if bitcoin exits the consolidation phase it has been in for over 2 months or drops back down and continues consolidating.

There really haven't been any huge changes since yesterday other than breaking through one of the resistance levels but we'll look at some charts anyway, first up is the 4-hour chart.

Bitcoin 4-hour Chart

Looking at the chart we can see that bitcoin did push above the resistance level which now flips to support and BTC also challenged the next resistance level but was rejected. As I am writing this BTC pushed up a second time but was rejected again.

Bitcoin Daily Chart

Looking at the daily chart we can see pretty much the same thing. If bitcoin can push above this next resistance level we'll find out how tough the $60k level will be to breakthrough. We should also find out if bitcoin has enough momentum to break out of the consolidation or if it remains range-bound.

Bitcoin Weekly Chart

Looking at the weekly chart we can also see that not too much has changed. The 7 EMA continues to provide very good support and bitcoin is pushing towards the top of the consolidation box. As I said yesterday, the longer-term time frames continue to look very bullish to me. I am very anxious to see if the consolidation continues or if bitcoin has the momentum to break out of it. This being Saturday though, typically the trading volume is lower so I am not sure how much movement we will see.

Ethereum 12-hour Chart

The last chart we will look at is the 12-hour chart for Ethereum. The first thing that I see is just how strong of support the 7 EMA has been since the 25th of April. The next thing that I noticed was that ETH is forming a rising wedge pattern which is typically a bearish pattern. You can see how the candles are becoming smaller as the pattern tightens up, also you can see that the volume has been dramatically dropping as the pattern has progressed. As I said typically rising wedge patterns are bearish formations and in an uptrend can signal a possible reversal. Nothing works 100% of the time so it is possible that ETH breaks out of the formation by moving higher. Even if ETH does break down out of this formation that doesn't mean that it has to be a severe pullback. Well, forget about the rising wedge pattern because as I am writing this ETH just broke out of it to the upside. That just goes to show that although the probabilities of it being a bearish pattern were higher there is always a chance for it to resolve in a bullish manner as it just did.

New Ethereum 12-hour Chart

Here is the updated 12-hour chart showing the breakout. I think that is all I have for today but will continue to watch both Bitcoin and Ethereum closely. I hope you are all enjoying this crazy bull market and staying safe both physically and financially.



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