Crypto Market Update for May 7th, 2021

Not a lot has changed over the last 24 hours, bitcoin is still struggling with the same resistance level and most of the altcoin market looks very bullish. Even in this bull market though it can seem like the market is bi-polar, one day everything is surging higher and the next everything is dumping. The volatility was one of the hardest things for me to get comfortable with when I first got into crypto, I still don't love the big down days but I now realize that it is just part of being in the crypto space.


Okay, as I said not much has changed since yesterday, and we can see that looking at the 4-hour chart. Yesterday bitcoin was rejected once again from the resistance level at just over $58k but overnight bounced off of support near $55,200 and is now pushing higher, and looks like it will try one more time to breakthrough.


Bitcoin 4-hour Chart


Looking at the daily chart we can see the same thing, mostly sideways price action which I feel will continue for some time. I would love it but I just don't feel like bitcoin is going to rocket higher at least in the short term. As I mentioned in yesterday's update I feel that this bull market could go on at least through the summer so there is really no hurry for BTC to take off here. I still feel this is a very healthy consolidation.


Bitcoin Daily Chart


Ethereum Weekly Chart


Ethereum is looking very strong and has actually outperformed bitcoin percentage-wise. Looking at the weekly chart we can see just how strong it looks, all of the moving averages are moving upward at an extremely steep angle and both indicators look extremely bullish. With the move higher over the last 2 weeks, ETH does look a little overextended above the 7 EMA and may need to cool off or pull back soon. I would consider any decent pullback though as a great opportunity to add more ETH to your position. I should add that this all is just my opinion and not financial advice, everyone should do their own due diligence and make their own investing decisions.


ADA (Cardano) Weekly Chart



Many altcoins have been on a tear lately with bitcoin consolidating. This typically does happen whenever bitcoin takes a breather, other times when bitcoin is surging many of the altcoins become stagnant or even experience large pullbacks. One altcoin that I believe will ultimately do very well is Cardano (ADA). As you can see by the weekly chart ADA has been in a very long period of consolidation after making a nice run higher over several months. It now appears as though the long consolidation may be coming to an end as ADA has broken out and set a new all-time high at $1.74. I have set a conservative price target from the breakout at $2.24, my feeling though is that before this bull market is over ADA will go much higher. As I said earlier I expect this bull market to last several more months and I believe what we will see is the market move in waves with bitcoin leading the market higher, then taking a break allowing the altcoins to lead the market. I can envision at least 2 or 3 of these waves before the bull market comes to an end.


That's all I've got for now, I hope you are all taking advantage of this opportunity to improve your financial situation. This bull market won't last forever so we need to make the most of it while it is here.


Cheers!

BigskyCrypto

info@bigskycrypto.com







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