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Мarket data is provided by the HitBTC exchange.
Bitcoin has been crossing every overhead resistance with ease. A few months back, the question troubling analysts was where Bitcoin would bottom out, but now the analysts are wondering how long the recovery can last.
Noted Bitcoin bull Galaxy Digital CEO Michael Novogratz expects a new high within the next 18 months. VC investor Tim Draper is even more bullish as he anticipates Bitcoin to garner 5% of the entire market share of the world by 2023.
While companies are expanding their crypto operations to attract more customers, PayPal thinks it is too early to participate in the crypto sector, according to the firm’s CFO John Rainey. Facebook has taken advantage of this and has attracted a lot of talent from PayPal. According to sources, Facebook might launch its FB Coin in the third quarter of the year.
The United States Securities and Exchange Commission (SEC) is reviewing an application by Crescent Crypto Index Services for launching a portfolio of Bitcoin and Ether under the “XBET” ticker on the New York Stock Exchange. While the SEC has not cleared any exchange traded funds (ETFs) to date, they have exuded confidence that an ETF might get the green light in the future if it meets the proper requirements.
Bitcoin (BTC) has picked up momentum after breaking out of the critical overhead resistance of $5,900. This shows some short covering and buying by the traders who are feeling left behind. Both the moving averages are sloping up and the RSI is in the overbought zone, which shows that the bulls are firmly in the driver’s seat.
However, we anticipate a stiff resistance in the $6,480–$6,700 zone. Therefore, traders can book 50% profits on the existing long positions at the current levels and trail the stops on the rest to $5,800.
Contrary to our expectation, if the BTC/USD pair breaks out of the overhead resistance zone, it can rally to $7,500 but we give this a low probability of occurring. The pair will weaken if it slides and sustains below the critical support of $5,900 and the 20-day EMA. We expect the cryptocurrency to form a higher floor between $4,255 and $4,914.11 in the next fall.
Ethereum (ETH) has been holding above the 20-day EMA for the past two days but the bulls have failed to secure a strong bounce from this level. This shows a lack of demand at higher levels. However, both the moving averages are trending up and the RSI is just above the midpoint. This shows that bulls have a minor advantage.
The ETH/USD pair will pick up momentum on a breakout above the $190.54–$198.62 resistance zone. The target level to watch on the upside following the breakout is $225 and above it $256.
Our bullish view will be invalidated if the bears sink the pair back into the triangle. If the 50-day SMA gives way, the digital currency can drop to the trendline of the ascending triangle. When a breakout of a bullish pattern fails to pick up momentum, it can be a bull trap. Therefore, we suggest traders trail the stops higher on the existing long positions from $146 to $160.
Ripple (XRP) continues to trade in the lower half of the $0.27795–$0.33108 range. The bulls are trying to scale the 20-day EMA. If successful, the digital currency can move to the 50-day SMA and above it to $0.33108.
Conversely, if the XRP/USD pair reverses direction and dives below $0.27795, it can retest the yearly low of $0.24508. The pair will show signs of a possible reversal if it breaks out and sustains above the $0.33108–$0.37835 resistance zone. We expect the digital currency to pick up momentum and rally to $0.45 and above it to $0.565 if it sustains above the zone.
Bitcoin Cash (BCH) has been trading above the 20-day EMA for the past few days. The 20-day EMA is flat and the RSI is just above 50. This suggests a range-bound trade between $255 and $335.62.
A consolidation after a sharp rally is a positive sign. We also like the way the bulls quickly bought the dip to the 50-day SMA. However, the BCH/USD pair will turn positive on a breakout and close (UTC time frame) above the range. The target to watch on the upside is $424.02. On the other hand, if the pair breaks down of the $255–$227.70 support zone, it can slide to $166.98.
Litecoin (LTC) has been holding the moving averages for the past few days. Both the moving averages are flat and the RSI is close to the midpoint. This points to a consolidation in the near term.
The bulls will now try to propel the LTC/USD pair to the overhead resistance of $91. A breakout and close (UTC time frame) above $91 will complete a cup and handle pattern that has a target objective of $158.91. We will wait for the price to sustain above $91 before recommending a long position in it. Our neutral to bullish view will be invalidated if the pair turns down from the current levels and plummets below the $66.47–$60.198 support zone.
The bulls are struggling to defend the uptrend line of the rising wedge. A breakdown of the uptrend line will be a negative sign that can sink EOS to $3.20 if the intermittent support levels of $4.4930 and $3.8723 fail to hold.
Contrary to our assumption, if the bulls keep the EOS/USD pair above the uptrend line of the wedge, it will again move up to $5.50. The 20-day EMA is flattening out and the RSI is hovering between 40 and 60. This points to a probable consolidation in the short term. We should get a clear picture within the next few days. Currently, we are neutral on the pair.
Binance Coin (BNB) plunged below the uptrend line of the wedge on May 9. It now has a target objective of $15. The 20-day EMA has started to turn down and the RSI is in the negative zone. This shows that the bears have the upper hand in the near term.
The bulls are presently trying to propel the price back above the uptrend line of the wedge. Any pullback will face resistance at the moving averages. But if the BNB/USD pair scales above the moving averages, it will indicate that the markets have rejected the breakdown, which is a positive sign. We do not find any reliable buy setup in the cryptocurrency; hence, we are not proposing any trade in it.
Stellar (XLM) is looking weak as it continues to drop towards its next support of $0.08. The 20-day EMA is sloping down and the RSI is close to oversold territory. This shows that the bears have the upper hand.
Any pullback will face resistance at the 20-day EMA and above it at the 50-day SMA. The XLM/USD pair will signal strength if it sustains above the 50-day SMA. Until then, every pullback is likely to be sold into. We will wait for the pair to stop falling and indicate a turnaround before recommending a trade in it.
Cardano (ADA) broke down of the critical support at $0.063230 on May 9. This is a negative sign. With this fall, the digital currency has broken down of the 61.8% Fibonacci retracement of the recent rally. If the bears sustain this breakdown, the next stop is $0.053581 and below it $0.040. The 20-day EMA is sloping down and the RSI is in the negative territory, which suggests that the bears have the advantage in the short term.
Currently, the ADA/USD pair is trying to climb back above $0.063230. If successful, the bulls will attempt to rise above the moving averages once again. The pair will complete a reversal pattern on a breakout and close (UTC time frame) above $0.094256 that has a target objective of $0.161275. We will wait for the digital currency to sustain above $0.094256 before suggesting a long position in it.
After failing to sustain above the moving average, Tron (TRX) plunged close to the first support at $0.02094452. The bulls have defended this support since mid-January. Hence, a break of this level will indicate weakness and can drag the price to the critical support of $0.0183.
On the contrary, if the TRX/USD pair rebounds sharply from $0.02094452, the bulls will again try to scale above the moving averages and push the price to the top of the range at $0.02815521. The pair will signal a trend change if it sustains above the range. As the breakout follows an extended stay in the range, we expect the next uptrend to surprise on the upside. Hence, we will retain our existing buy recommendation.
Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.