 
|
Buying Pressure Strongest Since December
BTC: Price: $8,800 | MCAP: $155.96 billion | 24-Hr Volume: $28.49 billion
Short-term trend: Bullish
Bitcoin closed well above the May 16 high of $8,390 on Sunday, confirming an upside break of the pennant – a continuation pattern that usually accelerates the preceding bullish move.
This type of breakout is often followed by a move upwards of roughly the length of the pennant’s “pole” (the height of the preceding bull move) – in this case from $5,562 to $8,390).
BTC, therefore, has scope to rally at least to $10,000 (psychological resistance) in the near-term. On the way higher, the cryptocurrency may encounter resistance at $9,442 – the 38.2 percent Fibonacci retracement of the sell-off from the December 2017 high to December 2017 low.
It’s worth noting that prices are currently up more than 65 percent on a month-to-date basis. Pullbacks due to profit taking are usually observed following such stellar rallies. As a result, the possibility of BTC revisiting the former resistance-turned-support zone of $8,390–$8,000 before rising to $9,442 cannot be ruled out.
That said, the bullish case would weaken if prices fall back below $8,000 in the next day or two.
Long-term trend: Bullish
Bitcoin closed well above the June 2018 high of $8,500 last week, validating the previous week's sharp from the previous week's bounce from the 5-week moving average (MA).
The four-week winning run is backed by five-month highs on the Chaikin money flow index – that is, buying pressure is currently the strongest since mid-December.
Further, the cryptocurrency is trading well 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 on April 2.
The longer run bullish outlook would be neutralized if the price finds acceptance below the 200-day MA, currently at $4,531.
Read Analysis
 |
|
|
|
|
|
Crypto.com's Bullish Breakout MCO: Price: $7.03 | MCAP: $112.09 million | 24-Hr Volume: $40.09 million
Short-term trend: Pullback MCO has enjoyed a 25 percent rise in value over the last 24-hour period and is one of today's best performing crypto assets as per CoinMarketCap data after breaking from a bullish pattern on the daily chart.
The 161.8 percent Fibonacci extension zone, also known as an area for taking profit, has been reached and since then price has retraced slightly, hinting at exhaustion as per the long-tailed wick topside. Should prices dip, expect a retest of former resistance at $6.20
Long-term trend: Bullish
Current market structure and momentum for MCO are hinting at a continuation in its price rise over the next couple of months, seen by a bullish market structure and the level of investor interest that has been increasing overall ever since the new year began.
 |
|
|
|
|
|  We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets. Create an account on StockTwits and then subscribe! Subscribe Here |
|
Down, Down, Down TFUEL: Price: $0.0175 | MCAP: $65.7 million | 24-Hr Volume: $102.1 million
Short-term trend: Neutral-Bull potential Newly listed TFUEL, the crypto that provides GAS to the Theta network, is down 19.41 percent over a 24-hour period delaying a potential falling wedge breakout on the hourly chart.
The previous hourly candle shows a small bounce from $0.01651 while it struggles to find acceptance above $0.018, leading to a continuing downward trend making up the falling wedge.
Long-term trend: Bearish
Until the trend changes from lower highs and lower lows to higher highs and higher lows on the larger timeframes then consider price action to be bearish long-term.
 |
Having witnessed a bull flag breakout on Friday, bitcoin jumped to $8,400 over the weekend, as anticipated by @CoinDeskMarkets.
The bullish move did not happen immediately in a sense that prices remained in the range of $8,000-$8,200 on Saturday and for a better part of Sunday before picking up a strong bid and rising to $8,400.
In fact, the cryptocurrency rose well past the June 2018 high of $8,500 and clocked 12-month highs above $8,900 earlier today.
The sharp rise in BTC has boded well for broader markets. For instance, litecoin and EOS are up 13 percent each at press time. Ethereum's ether token has also gained 8 percent on a 24-hour basis.
Litecoin, in particular, could continue to outshine other cryptocurrencies as the its blockchain is set to undergo mining reward halving in August. The process aim to curb inflation by reducing rewards for mining on the blockchain by half is repeated every four years and tends to put a strong bid under the cryptocurrency at least a few months in advance. |
The 30-day correlation coefficient between BTC/USD and USD/CNH (offshore Yuan exchange rate) is currently at 0.92, having hit a high of 0.95 last week.
After all, USD/CNH picked up a strong bid at 6.67 on April 18 and jumped to a high of 6.9490 on May 17. During the same time frame, BTC/USD rallied from $5,200 to $8,400.
It is worth noting that correlation does not mean causation, meaning just because two things correlate does not necessarily mean that one causes the other.
In this case, however, speculation is doing the round that hot money outflows from China has entered the bitcoin market.
While there is now way to prove that, many believe the BTC rally may have been fueled at least in part by the Chinese money.
After all, the US President Trump's sudden re-escalation of trade war with China last month caught both the Chinese officials and investors off guard. The Yuan dropped sharply and the currency fears may have forced the Chinese investors to pour money into bitcoin.
If that is true, then BTC could see even bigger surge if and when the USD/CNH pair rises above 7.00, as that could lead to more panic among the Chinese and global investors.
Experts believe the People's Bank of China (PBOC) would do everything to defend that levels, as a rise above 7.00 may further invite criticism from Washington.
The officials have already sprung into action. For instance, a senior Chinese official warned speculators against shorting the Chinese currency. Such threats, however, may not work for long and the USD/CNH pair will likely rise above 7.00 if the trade war continues to escalates.
Also, USD/CNH rising above 7.00 could actually put pressure on the Trump administration to soften its stance. So, China may eventually allow USD/CNH to rise above 7.00, possibly leading to more hot money inflows into cryptocurrency markets. |
|
| 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. |
|
| | | | |
One-Year High