BITCOIN / US DOLLAR
Price Analysis
May 7th was a great day for Bitcoin traders as the BTC / USD pair surge over 10 %, hitting $ 10,000 breakpoint. As we mentioned in the previous days, we expect a sharp move of the price that may break channels. The channels broken by that was two.
The first channel was the upward trending channel, which broke on the upper side, creating new situations that will be examined in the next days. The second channel was the horizontal channel between $ 8,500 and $ 9,200, which absorbed powers for both sides. This time the power released on the positive side, creating profits for many traders.
There was another feature which was broken in the last days. $ 9,200 was a severe resistance, both for upward and downward trends. It is worth noting that in early-March when Bitcoin price bounds after a severe drop, the last upward resistance was at $ 9,200, the same as this time when the price stops its momentum trend around that price, where now the resistance broke. In the next days, we will discuss more the resistances and how they affect day-to-day trading.
In the short-term diagram, we can also observe the two horizontal channels, that both broke on the upper side, making profitable those strategies. The two rises were accompanied by the corresponding volume, much higher than other days, as we can observe in the diagram below. Volume is a safe indicator, showing us if a sharp move in any asset's price creates trustworthy or trustless signals for trading.
Indicators
The indicators continue to move in the previous mood without many changes. MACD index continues its momentum and strays away even more from the previous days. While the momentum index shows a clear positive signal, the RSI index is moving clearly in the overbought area, showing that any time the momentum could break and lead to a bearish period for Bitcoin. We expect a continuous momentum over the next and an immediate correction after that will refresh the RSI index between the normal boundaries.
ETHEREUM / US DOLLAR
Price Analysis
Ethereum didn't follow Bitcoin surge and remain stable over the last day, creating a horizontal channel that could break, as we told before, either on positive or negative sides. The volumes are rather low respecting previous sessions, showing that a large volume the next days will show the direction for the market.
Indicators
MACD and RSI indexes didn't show any signal regarding positive or negative trends. MACD index remains positive but in decline, showing that there is no powerful momentum at this moment that could move the trend in a certain direction. Also, the RSI index is between the boundaries for many sessions, showing relative stability in the price movement. What we expect is a clear move, breaking the horizontal channel in the next week, as the weekends are probably calm and stable most of the time.
