Bitcoin closed higher on Wednesday, May 5 as the crypto bulls pumped up the price action 7.96% to $57,436, paring the decline seen on May 4. In line with technical analysis, Bitcoin is expected to strengthen near the North American session or on Friday before Saturday Night Live. Elon Musk is scheduled to host the show on May 8.
Musk has been pumping up DOGE on Twitter and has even dubbed himself "The Dogefather". The meme-inspired cryptocurrency ranks fourth in terms of capitalization with a market cap north of $80 bln. We believe it is safe to assume that the market will remain bullish ahead of this event.
Bitcoin currently holds a market share of 46.17%, with downside potential of 42%. Altcoins may continue to rise in price against Bitcoin and the dollar. If the BTCUSDT pair grows faster than altcoins to USDT, Bitcoin’s share will increase. That’s not so bad compared to a scenario whereby the share rises due to the collapse of altcoins.
BTC needs to gain a foothold above $60,000. Based on intraday charts (up to H1), resistance levels are currently at $58,600 and $62,400. In case of an unexpected pullback below $52,355, the sustainability of the rally will be called into question. Given the recent liquidity and thin volumes, the downside scenario should not be ruled out.
Bottom line: on Wednesday, bitcoin advanced 7.96% to $57,436 and looks set to extend the rally up to the psychologically important $60,000 level. The Saturday Night Live to be hosted by Elon Musk could trigger new upward momentum. The next resistance levels are at $58,600 and $62,400. In case of an unexpected pullback below $52,355, the rally will be called into question.