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Cryptocurrency markets have continued their upward surge on May 5, with BTC-USD posting a fresh high at $1623.01 on the Bitstamp exchange, while ETH-USD peaked at $97 on Kraken. The price of bitcoin has been boosted by its highest ever volume in a 24-hour period, surpassing $1 billion.

Some of the top volume bitcoin pairs are XRP-BTC, ETH-BTC, LTC-BTC and XLM-BTC on Poloniex, suggesting that the rise of altcoins strengthens bitcoin’s position as a gatekeeper to the cryptocurrency world.

The chart below shows the 4-hour price action for BTC-USD. On May 4, bulls exerted their control of the market, taking the cryptocurrency to a new all-time high at $1623.01 before dropping below $1500 to $1444.94 and then regaining this psychological level afterward. The price action has dipped back down below $1500 on May 5, but sellers were only able to push the market as low as $1496.07. The higher lows suggest that the uptrend will continue.

Also shown below are the key Fibonacci retracement levels. We see that the 23.6 percent Fibonacci level held as resistance on May 4 and a fractal buy level was formed at $1444.94, suggesting we may see the market extend to the first Fibonacci extension level at $1758.98.

The market currently stands just below the 61.8 percent Fibonacci retracement level at $1538.97, which provides immediate resistance. On the other hand, immediate support is found at $1513.01, the 50 percent Fibonacci level. We could place limit orders on either side of these levels to take advantage of a breakout.

The Ichimoku indicator suggests that we will see sideways price action, as the conversion line (blue) and base line (red) are horizontal. The conversion line provides resistance at $1533.97 and a 4-hour session close back above this level will point to a bullish outlook.

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