OK, I have seen many opinions on anchoring and I have come to the conclusion that your hand shouldn't be touching any part of the guitar while playing, but what about the elbow, I usually rest it on my guitar. Should my arm be completely off or I can rest my elbow and just keep my hand off? Also, I find it kind of difficult to alternate pick fast when I am not resting my palm on the bridge. Thanks.
I rest my upper forearm on my guitar. But I also play with it not resting on the guitar. I suggest learning to play many different ways.

You simply must anchor to palm mute right? learning to alternate pick without anchoring Is difficult. Iv been there.

It takes alot dedicated practice and very slow movements to train your muscles. but all in good time.

strumming, sweep picking, and chord picking all need to done without having to anchor.

Alot of mindless exercises arnt going to help you. make sure your 100% focused. Its better to put in 100% for 10 minitues. then 50% in 30 minutes.