Bitcoin, Polkadot, Bitcoin Cash Price Analysis: 06 May
Many of the market’s altcoins like Polkadot and Bitcoin Cash, at press time, were refusing to follow Bitcoin’s lead to trade sideways and consolidate on the charts. With ETH climbing to a new ATH and the altseason well and truly in flow after BTC’s market dominance fell again, such contrarian price actions are likely to be even more frequent in the short term.
While the rest of the market has surged in the time being, Bitcoin, the world’s largest cryptocurrency, has traded within a $10,000-channel range for the past two months. While the king coin did register an ATH of close to $65k back in April, at the time of writing, it was well below the same, valued at just under $59,000.
The king coin’s on-chain metrics and trading volumes have remained healthy, however, with many in the community expecting greater highs from the crypto once BTC breaches the aforementioned range.
While the mouth of Bollinger Bands was closing in to suggest that price volatility may fall soon, Chaikin Money Flow registered an uptick that saw it move above zero.
The cryptocurrency was in the news a few days ago after Tesla sold some of its Bitcoin holdings to prove its liquidity, a move that fueled quite a stir in the community.
At the time of writing, Polkadot was ranked 8th on CoinMarketCap’s charts, with its position on the same superseded by the performances of other alts such as Cardano and Dogecoin over the past few months. Unlike Bitcoin, DOT has been on an uptrend somewhat since the market-wide depreciation event over the 24th and 25th of April. In fact, the last 7 days saw DOT climb by 19%.
Parabolic SAR’s dotted markers were observed to be under the price candles, a sign of the bullishness prevailing in the DOT market. Something similar was pictured by Awesome Oscillator’s histogram, with the same expected to head above the half-line soon.
As highlighted by a recent analysis, if the present breakout continues, the next targets for DOT would lie at the $40 and $42-levels.
Bitcoin Cash [BCH]
Until a few days ago, Bitcoin Cash’s price action was destined to mimic BTC’s. This changed recently, however, with the fork coin surging by almost $500 in a 24-hour window. On the back of the said hike, BCH also climbed to touch levels unseen this year.
At the time of writing, corrections had started to set in despite an uptick in trading volumes being seen.
While the MACD line registered a sharp divergence from the Signal line on the charts, Relative Strength Index was dipping towards the equilibrium zone after a brief foray into the overbought zone.
As was the case last time, right now, it’s still difficult to ascertain if the crypto will be able to sustain its press time price action.