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07.05.202608:35 Forex Analysis & Reviews: Trading Recommendations for the Cryptocurrency Market on May 7

Relevance up to 02:00 2026-05-08 UTC--4
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Bitcoin has pulled back from a high around $82,800 and is currently trading below $81,000. Ethereum has also dropped significantly amid profit-taking, falling below $2,350.

Exchange Rates 07.05.2026 analysis

Against the backdrop of this upward movement, the crowd's positive sentiment toward Bitcoin has surged to a four-month high, leading to significant FOMO (Fear Of Missing Out) among speculative players. However, historically, this is a warning signal, as such peaks of optimism have often preceded corrections. Traders, fearing that they are missing out on profits, are actively buying, which pushes prices up but simultaneously creates conditions for increased volatility and profit-taking by larger players.

At the same time, BTC is beginning to test an important resistance level — its 200-day moving average. This technical indicator often serves as a barrier to growth, and a successful breakout would be a significant signal for the market. However, given the elevated FOMO, there is a risk that buying at this peak of enthusiasm could lead to losses if prices fail to hold above this critical level.

Traders and investors should also closely monitor developments in the Middle East, as they are currently driving bullish momentum in the market. If the situation worsens, pressure on risk assets, including the cryptocurrency market, will sharply increase.

As for the intraday strategy in the cryptocurrency market, I will continue to act based on any significant pullbacks of Bitcoin and Ethereum, anticipating further development of the bullish market in the long term, which has not disappeared.

For short-term trading, the strategies and conditions are outlined below.

Bitcoin

Exchange Rates 07.05.2026 analysis

Buy Scenario

Scenario #1: I plan to buy Bitcoin today at the entry point around $81,200, with a target price of $81,900. At $81,900, I intend to exit my positions and sell immediately on the rebound. Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome indicator is above zero.

Scenario #2: Buying Bitcoin can be considered at the lower boundary of $80,700 if there is no market reaction to its breakout back towards $81,200 and $81,900.

Sell Scenario

Scenario #1: I plan to sell Bitcoin today upon reaching the entry point around $80,600, targeting a decline to $79,900. At $79,900, I will exit the sell positions and buy immediately on the rebound. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is below zero.

Scenario #2: Selling Bitcoin can be considered at the upper boundary of $81,200 if there is no market reaction to its breakout back towards $80,600 and $79,900.

Ethereum

Exchange Rates 07.05.2026 analysis

Buy Scenario

Scenario #1: I plan to buy Ethereum today at the entry point around $2,334, with a target price of $2,353. At $2,353, I will exit my positions and sell immediately on the rebound. Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome indicator is above zero.

Scenario #2: Buying Ethereum can be considered at the lower boundary of $2,318 if there is no market reaction to its breakout back towards $2,334 and $2,353.

Sell Scenario

Scenario #1: I plan to sell Ethereum today upon reaching the entry point around $2,318, targeting a decline to $2,299. At $2,299, I will exit the sell positions and buy immediately on the rebound. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is below zero.

Scenario #2: Selling Ethereum can be considered at the upper boundary of $2,334 if there is no market reaction to its breakout back towards $2,318 and $2,299.

Miroslaw Bawulski
Analytical expert of InstaForex
© 2007-2026

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