2021-05-06 22:15:00

BTC Battles Resistance as Altcoins Siphon Demand

Bitcoin (BTC/USD) Price Outlook:

Bitcoin Price Forecast: BTC Battles Resistance as Altcoins Siphon Demand

Bitcoin is battling resistance slightly beneath all-time highs as other cryptocurrenciescontinue to surge higher. The newfound popularity in altcoins, specifically those like doge, has likely worked to erode some of bitcoin’s popular appeal. While popular culture figures like Elon Musk have touted their Bitcoin belief in the past, the Tesla chairman has since moved on to a coin with a smaller market capitalization and many crypto traders suspect his appearance on Saturday Night Live may spark volatility in some lesser known cryptocurrencies.

That being said, Bitcoin still enjoys an optimistic outlook over the longer term. Months of gains have seen the coin push to record highs time and time again while enjoying mouthwatering returns in the process. Prior headwinds in the cryptocurrency space were centered around acceptance, regulation and practical use cases, which the recent wave of corporate adoption and public embrace have worked to resolve.

Just recently, Goldman Sachs announced new Bitcoin derivatives the bank will offer to Wall Street investors, signaling the latest addition to the considerable wave of corporate adoption. As a result of said adoption, cryptocurrency has become a household term and Bitcoin’s recent dilemma of losing out to a lesser-known and more volatile alternative is rather pedantic when observed in the bigger picture.

Bitcoin (BTC/USD) Price Chart: 4 – Hour Time Frame (January 2021 – May 2021)

Nevertheless, the glimmer of Dogecoin and other emerging cryptocurrencies may continue to steal the limelight, and retail demand, in the days ahead. With that in mind, Bitcoin could struggle with overhead resistance marked by prior highs. $58,200 likely serves as an initial barrier to further gains while $61,650 and $65,000 may serve as secondary and tertiary hurdles.

Over the longer term Bitcoin may look to continue its ascent should it weather the current storm successfully. To do so from a technical perspective would mean staving off lower-lows beneath the $46,750 area as a break beneath the April trough could begin to etch out a broader downtrend.

Unfortunately, surviving the shifting tendencies of retail traders is much more difficult to gauge, so price will have to suffice as an alternative on the fundamental and sentimental fronts. In the meantime, keep up to date on recent price developments and analysis using Twitter by following @PeterHanksFX.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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