Can Bitcoin Continue the Recovery? A Bullish Start to May Suggests it Can…

Bitcoin sees green in a relatively range-bound start to the day. A move through to $5,700 levels would bring $6,000 into play near-term…
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Bitcoin gained 0.54% on Wednesday. Following on from a 2.18% rally on Tuesday, Bitcoin ended the day at $5,629.5.

Following April’s 35% gain, it’s another positive start to the month, in what was a trend-bucking day on Wednesday.

A bullish start to the day saw Bitcoin strike an intraday high $5,655 before easing back. Coming up against the first major resistance level at $5,657.17, Bitcoin eased to a late afternoon intraday low $5,577.5.

Steering well clear of the first major support level at $5,496.67, Bitcoin recovered to $5,600 levels late in the day.

For the bulls, it was the first hold onto $5,600 levels by the day’s end since 18th November.

Elsewhere,

Across the top 10 cryptos, joining Bitcoin in the green was Bitcoin Cash ABC, which rose by 0.8% on the day. The rest of the top 10 saw red.

Leading the way down were Cardano’s ADA and  Ripple’s XRP, which slid by 2.36% and 2.35% respectively.

Not far off was EOS, with a 1.71% loss on the day.

The losses came off the back of a relatively bullish end to April, which saw a number of the majors make double-digit gains on Tuesday to wrap up the month.

Leading the way through April was Bitcoin Cash ABC, which rallied by 57.5%. Bitcoin and Binance Coin also impressed, with gains of 35% and 30% respectively.

Bucking the trend through the month was Stellar’s Lumen which fell by 3.93%.

The sizeable gains saw Bitcoin Cash ABC hold onto the number 4 spot by market cap, with Binance ending the month at number 7.

On the news front, it was a relatively quiet day as the bulls and the bears looked to forecast Bitcoin’s next move.

Increased activity and chatter of the likes of NASDAQ and Fidelity looking to enter the cryptosphere are certainly supportive of the more bullish forecasts. The positive start to the month suggests that $6,000 could be around the corner. There is the issue of the SEC and the Bitcoin ETFs to consider, however…

This Morning,

At the time of writing, Bitcoin was up by just 0.07% to $5,633.2. Moves through the early hours saw Bitcoin fall from a morning high $5,647 to a low $5,611.1 before finding support.

A relatively range bound start to the day saw Bitcoin steer clear of the major support and resistance levels. Key through the morning was a hold onto $5,600 levels.

For the day ahead

A hold above $5,620 levels through the morning would support another run at the first major resistance level at $5,663.83. Following a positive start to the month, support from the broader market would be needed, however, for Bitcoin to take a run at $5,700 levels.

Barring a broad-based crypto rally later in the day, Bitcoin will likely be pinned back to $5,600 levels on the day. The second major resistance level at $5,698.17 would likely cap the upside on the day.

Failure to hold onto $5,620 levels could see Bitcoin hit reverse later in the day. A fall through the morning low $5,611.1 would bring the first major support level at $5,586.33 into play.

Barring a crypto meltdown, Bitcoin would likely steer clear of the second major support level at $5,543.17 on the day.

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