After the bulls managed to break above the key resistance around $8,800 earlier this week, the BTC price has been consistently moving upward. The price is now hovering at $9,300 as bulls aim for the $9,400 resistance.
If the price moves beyond this resistance, odds are high we could see Bitcoin rallying all the way up to $10,000 (and possibly to somewhere around $10,500). On the flip side, failure to break above $9,400 could cause Bitcoin to lose some momentum and retreat back to the mid-$8,000s.
On that note, let’s quickly go through our Bitcoin analysis for May 6 and figure out the odds that Bitcoin is gearing up to kick off yet another upward move.
Bitcoin Analysis for May 6
In the short-term, the Bitcoin price is trading either in a symmetrical or descending triangle. While the former is neutral, the latter is a bearish pattern.
However, even though the symmetrical triangle is considered a neutral pattern, the fact that it is occurring after an upward move would make a breakout likely.
- The Bitcoin price is trading either in a symmetrical or a descending triangle.
- There is strong resistance at $9,150.
- The price is trading inside a very short-term ascending channel.
Sub-Saharan Africa Sees Record Bitcoin Trading Volume, Exchange Sign-Ups
With the next Bitcoin halving only four days away, sub-Saharan Africa is witnessing a record increase in trading volume on peer-to-peer Bitcoin exchanges.
According to Paxful CEO Ray Youssef, multiple countries including Nigeria and Ghana posted new records in user signups on the region’s P2P exchanges. Strikingly, the gains in the weekly p2p trading volume are now much higher than the records posted during the ‘crypto boom’ of December 2017.
Traders Flock to Bitcoin Futures but US Retail Investors Still Excluded
A surge in open interest in BTC futures often indicates that a trend is set to continue. Recently, the trend has been upwards, with Bitcoin once again surpassing $9,000 following the BTC price crash in mid-March.
Unfortunately, U.S. retail traders are seemingly losing out on this sizeable opportunity as they’re not legally permitted to trade cryptocurrency derivatives.
Crypto Price Analysis May 6: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, XTZ, LINK
- For ETH, the most likely move would be a retest of the descending support line and the closest minor support area at $192, followed by a breakout.
- XRP is likely to continue its upward momentum until it reaches the $0.235 resistance area once again.
- Things are looking somewhat uncertain for BCH. The main resistance area is found at $275 whereas the closest support area is around $245. It is hard to predict at this juncture whether the price will break out or break down from here.
- The BSV price is expected to increase towards the resistance line of its current ascending channel.
- The LTC price is expected to continue to decline.
Bitcoin Could Hit $115,000 by Aug 2021, Says Pantera Capital CEO
Bitcoin’s much-debated stock-to-flow model (S2F) is once again back in the limelight after Pantera Capital CEO Dan Morehead used it to predict the BTC-USD pair at $115k by Aug 2021. Looking at previous rallies and supply reductions, Morehead concluded that the reduction in supply is only 40% greater than in 2016. Therefore, a 40% price increase would put BTC prices at a peak of $115,212 in August 2021.
As BeInCrypto previously reported, not everyone is convinced about the accuracy of the S2F model when it comes to predicting Bitcoin’s future price movements.
Bitcoin Generated More than 50% of Cash App’s Quarterly Revenues
Square reported a Q1 adjusted net loss of $0.02 per share, while Wall Street analysts were expecting earnings of $0.13 per share.
Despite that setback, however, the Cash App continues to knock it out of the park, with gross profits climbing 115% year-over-year. That staggering figure made it virtually impossible not to notice Bitcoin’s rising influence.