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Short-Term Bearish Reversal
BTC: Price: $7,900 | MCAP: $138.92 billion | 24-Hr Volume: $23.81 billion
Short-term trend: Bearish
Bitcoin's short-term outlook has turned bearish, courtesy of Tuesday’s UTC close below the 30-day moving average (MA).
This is due to the fact that BTC created multiple bullish higher lows along that average throughout the rally from $3,500 to $9,097.
Other widely-tracked indicators are also signaling a short-term bullish-to-bearish trend change. For instance, the 14-day relative strength index (RSI) has dived out of the rising trendline representing the rally from December 2018 lows.
Further, the RSI on the 3-day chart has created a bearish divergence. BTC, therefore, risks falling to $7,000 over the next few days.
That said, the ongoing recovery from the 2.5-week low of $7,432 seen yesterday could be extended to $8,000 before a potential drop toward $7,000, as the RSI on the hourly chart has diverged in favor of the bulls.
Long-term trend: Bullish
BTC closed last month with 62 percent gains – the highest since August 2017 – reinforcing the falling wedge breakout confirmed by April's candle.
Further, the 5- and 10-month moving averages have produced a bullish crossover for the first time since September/October 2015.
Therefore, the path of least resistance is to the higher side. The long-term bullish outlook would be invalidated if and when the price finds acceptance below May's low of $5,263.
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Chainlink Enjoys A Brief Bounce On The Day LINK: Price: $1.00 | MCAP: $343.7 million | 24-Hr Volume: $34.4 million
Short-term trend: Cautiously bullish
Given recent bearish developments in the crypto markets, with a mid-sized pullback occurring across the board on most major names, LINK is one of the few crypto in the green today.
Up 11.29 percent over a 24-hour period, prices have touched the 38.2 percent Fibonacci retracement level at $1.00 on a bounce that looks set to retrace unless more bullish volume is seen by today's close of trade.
Long-term trend: Bullish
The trend remains overall bullish thanks in large part to its position above the 200-day moving average, however, it is also a fair distance from the line, hinting at further possible drawdown in the coming days.
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Tumbling Tezos Teases A Truce XTZ: Price: $1.21 | MCAP: $804.09 million | 24-Hr Volume: $10.2 million
Short-term trend: Neutral
April 16 and May 11 have carved out two important former resistances now considered supports on XTZ's current downward trend.
The first significant support at $1.14 marks a previously known area of consolidation in which XTZ broke out bullishly to set a new high for the year at a $1.94 on the Kraken Exchange.
The second support marks a final defense of the bullish market structure as a move below $1.05 would forfeit the significant peak high carved out on May 16 and open up the possibility for further downside risk.
Long-term trend: Bullish
XTZ remains 165.2 percent up since the new year began, however, as previously discussed, a loss of the significant higher highs in its peak prices would ultimately result in further price discovery below the 78.6 percent Fibonacci retracement level on the daily chart.
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“We need a pullback,'' tweeted @KingThies on June 3 and bitcoin’s price nosedived to hit 2.5-week low near $7,430 earlier today.
As of writing, the cryptocurrency is trading near $7,770. The price pullback may not be over yet and a deeper drop to $6.500-$6,300 may unfold over the next week or two, as predicted by @KingThies, if the price witnesses a UTC close below $8,000 on Sunday.
That would confirm a bearish doji reversal or simply a bullish-to-bearish trend change on the weekly chart.
The probability of BTC ending the week below $8,000 has increased with Tuesday’s close below the crucial 30-day price average support – a level which reversed pullbacks over the last four months.
@KingThies is also right in stating a continuation to the upside requires a major positive news, as the cryptocurrency has already rallied more than 120 percent this year and is looking extremely overbought.
Further, the broader market, particularly litecoin is looking exhausted. The world’s fifth largest cryptocurrency led bitcoin and other cryptocurrencies higher in the first quarter with 100 percent gains.
LTC, however, is struggling to pick up a bid even though the supply altering mining reward halving event is just 60 days away.
On Aug. 8, the reward for mining on the litecoin blockchain will be reduced from 25 LTC to 12.5 LTC. The shift means miners will be adding fewer coins to the ecosystem after August, possibly leading to supply deficit. |
@YORK780 is drawing attention to strong signs of bullish reversal on XRP/BTC’s weekly chart.
To start with, the 14-week relative strength index (RSI) is recovering from oversold levels (30). Historically, RSI’s reversal from sub-30 levels has marked major lows in XRP/BTC.
The weekly stochastic RSI and CCI indicator are also flashing signs of bullish turnaround.
Therefore, the cryptocurrency, currently trading at 5135 sats on Binance, could challenge and possibly break above 5579 sats (May 16 high), establishing a bullish higher high pattern. That would confirm a bearish-to-bullish trend change on the daily chart.
It is worth noting that XRP/USD is also looking north with the daily chart reporting a golden crossover – a bullish crossover of the 50- and 200-day moving averages (MAs) – and the bullish crossover of the 100- and 200-day MAs. |
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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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Pullback Continues