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Teasing Pullback
BTC: Price: $7,700 | MCAP: $138 billion | 24-Hr Volume: $23.36 billion
Short-term trend: Cautiously bullish
Bitcoin jumped nearly 13 percent on Friday, marking a strong follow-through to Friday's long-tailed daily candle (a sign of dip demand).
The short-term outlook, therefore, remain bullish. The cryptocurrency, however, has charted a head-and-shoulders pattern on the hourly chart and is currently trading below the neckline support of $7,848, having dived out of the rising wedge pattern earlier today.
As a result, a rally to $8,500 may not happen immediately and prices could slide to $7,200-$7,500 range inn the next 24 hours.
That said, the outlook would turn bearish if and when the price finds acceptance below the historically strong support of the 30-day moving average (MA), currently at $6,239.
Long-term trend: Bullish
Bitcoin is looking strong, having registered double digit gains for three consecutive weeks.
The leading cryptocurrency by market value closed last week with 17.5 percent gains, having rallied 22.16 percent and 10.62 percent in the preceding two weeks respectively, according to Bitstamp data.
Notably, prices bounced up sharply from the 5-week moving average (MA) last week and closed on a positive note, reinforcing the bullish view put forward by that ascending average.
There have also been two bullish crossovers in the last week: one of the 5- and 100-week MAs, and another of the 10- and 50-week MAs, suggesting the path of least resistance is to the higher side.
Further, the cryptocurrency has found acceptance above the historically strong resistance of the 50-week and 100-week moving averages, validating the bearish-to-bullish trend change signaled by the violation of bearish lower highs pattern seen on April 2.
Also, supporting the longer run bullish case is the two-week MACD histogram's positive turn, the first since February 2018. Further, the 14-week relative strength index (RSI) is holding well above the key resistance range of 53.00–55.00.
The longer run bullish outlook would be neutralized if the price finds acceptance below the 200-day MA, currently at $4,468.
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DASHing Upward To Take A Break DASH: Price: $167 | MCAP: $1.4 billion | 24-Hr Volume: $522.2 million
Short-term trend: Bullish
DASH continues to perform exceptionally well throughout the month of May after a dead cat bounce shook investors from April 22 to May 13, followed by a breakout to new yearly highs at $177.83 on the Binance exchange.
The double top on the RSI also means that the extent of the pullback could last for the entire trading day leading into tomorrow with another attempt to push higher in the middle of the week.
Long-term trend: Bullish
So long as DASH can maintain a series of higher lows and higher highs on each subsequent pullback then a strong case for continuation can be made for the bulls provided volume levels within the entire market steadily grows as the month transitions from May to June.
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Crypto.com Enters Profit Taking Mode MCO: Price: $4.79 | MCAP: $75.8 million | 24-Hr Volume: $13.4 million
Short-term trend: Neutral-bearish
The current 4-hour bearish engulfing candle for MCO has meant a loss of control over price action in the short-term for the bulls as they attempt to recover May 17's losses.
If the bulls can retain the higher low here while the RSI remains the same, then an opportunity to scale back above $5.01 will be presented, courtesy of an exaggerated bullish divergence should levels hold.
Long-term trend: Bullish
Given its current bullish market structure since the new year began, MCO looks set to resume its upward trend provided the rest of the market favors a bullish outlook heading toward the monthly close (11 days).
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Last week, the US Securities and Exchange Commission delayed its verdict on a bitcoin exchange traded fund (ETF) application from Bitwise Asset Management, exercising its right to extend a self-imposed deadline by an additional 45 days.
The regulatory authority is widely expected to do the same with VanEck bitcoin ETF proposal on Tuesday, May 21.
Put simply, the bar of expectations has been set low and so as stated by @Josh_Rager is right in stating that an expected outcome, i.e. a delay will likely have a minimal impact on bitcoin’s price.
A rejection, however, may yield a notable price pullback. On the other hand, if the ETF is approved, then BTC could rise above $10,000 in just couple of days. |
@jchervinsky put out a series of tweets on Sunday explaining why he feels the US Securities and Exchange Commission (SEC) is more likely to reject and not approve VanEck bitcoin ETF proposal on Tuesday, May 21.
One of the main reason, according to @jchevrinsky, is that the bitcoin market is showing no signs of maturity. The cryptocurrency has recently been very volatile with investors associating Friday’s crash with spoofing – an illegal form of market manipulation, in which a trader places a large buy or sell order with no intention of executing.
For instance, a trader named Red5point1 explained on Reddit how a sell wall of $22 million on Bitstamp kept moving down below market value every time the prices dropped.
Also, investigations related to fraud and manipulation have ramped up. The SEC, therefore, has little room to come out in favor of BTC tomorrow. |
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| Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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Flashing Red