 
|
Closing On Long-Held Price Support
BTC: Price: $7,900 | MCAP: $140.97 billion | 24-Hr Volume: $23.46 billion
Short-term trend: Cautiously bearish
Bitcoin has dropped more than $700 in the last 24 hours, validating the bearish divergence of the 14-day relative strength index confirmed on May 30.
The path of least resistance, therefore, is on the lower side. Even so, sellers need to observe caution, as the price drop has brought BTC closer to the 30-day moving average (MA), which has consistently reversed pullbacks over the last four months.
The outlook would turn bullish if a potential bounce from the 30-day MA, currently at $7,710, ends up clearing the psychological resistance of $8,500. In that case, a re-test of $9,000 cannot be ruled out.
However, with the weekly money flow index reporting extreme overbought conditions, the bounce from the 30-day MA, if any, will likely be shallow.
If anything, the odds appear stacked in favor of a drop below the 30-day MA, which would imply an end of the rally from lows near $3,500 seen on Feb. 8.
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. As of now, that looks unlikely, but the prospects of a slide to $5,263 would rise if the price finds acceptance below the crucial 30-day moving average support in the next couple of weeks.
Read Analysis
|
|
|
|
|
|
Metaverse ETP Phone Home ETP: Price: $1.25 | MCAP: $88.7 million | 24-Hr Volume: $34.5 million
Short-term trend: Neutral-pullback
Bitcoin's drop earlier today at around 00:10 UTC sent the markets tumbling in the red with a few exception given to certain altcoins including ETP, up 12.17 percent over a 24-hour period and is currently on the defense along a crucial support/resistance flip.
$1.25-$1.22 marks an important region due to prior historical events on Nov. 19, 2018 that saw prices attempt to stabilize at current levels before resuming its downward trend.
Long-term trend: Neutral
The key support resistance flip flies in the face of current overbought conditions on the 2-day RSI, hinting at a short-term pullback and the possibility of forfeiting the hard won support line at $1.22.
If a strong close occurs below that level consider prior supports at $1.08 as the most likely landing pad should prices dip any further on the day.
 |
|
|
|
|
|  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 |
|
EOS Finally Slumps EOS: Price: $6.67 | MCAP: $6.19 billion | 24-Hr Volume: $4 billion
Short-term trend: Neutral-slight bearish
June 2's 13.52 percent drop in value spelled out the bearish conditions as buying pressure all but evaporated, until prices finally reached the 50 percent Fibonacci retracement (pivot point), followed by an immediate bounce and accumulation
This eventually led to a Dragonfly doji being printed on the daily chart.
The Dragonfly doji is typically a bullish reversal candlestick pattern, mainly occurring at the bottom of a downtrend, however, in this case it is appearing toward the end of a short-term pullback in its bullish advance, opening up the possibility for a strong bounce to new highs should the greater crypto markets recover from bitcoin's recent dip.
Long-term trend: Bullish
The long-term trend remains bullish above the aforementioned 50 percent Fibonacci retracement level and is further strengthened by the fact that the RSI has moved firmly away from overbought conditions, lessening the burden on the bulls to consolidate below $6.32.
 |
The bearish view on bitcoin's price detailed by @CoinDeskMarkets has worked to the T.
The leading cryptocurrency fell below $8,000 in the Asian trading hours today and hit a low of $7,732 on Bitstamp. As of writing, the price is sitting just above $7,900.
With the price slide, the bullish exhaustion signaled by last week's Doji candle gains credence. That said, a bearish doji reversal or the outlook as per the weekly chart would turn bearish only if the price ends (as per UTC) below $8,000 on Sunday.
Essentially, a close below $8,000 on Sunday would mean the period of indecision or buyer exhaustion, as signaled by the Doji candle, has ended with victory for the bears. As a result, a deeper price slide to levels below $7,000 could follow the weekly close below $8,000. |
Bitcoin's price rally, particularly the 62 percent gain seen in May, has revved up investor interest in the world's biggest cryptocurrency by market value.
This is evident from the surge in 30-day average tweet volume of bitcoin, which is currently at the highest in 264 days. The tweet volume average has increased 23.5 percent over the last five weeks.
A rise in the 30-day average tweet volume could be considered a confirmation of the bull market. This is because, a rise in the average represents a sustained rise in investor interest, which usually happens when the price is rising.
Indeed, the tweet volume does spike on days when there is a sudden price drop. However, once the bear trend is established, the investor interest dies down. Therefore, the 30-day average tweet volume tends to fall during the bear market.
The 30-day average tweet volume, therefore, is a reliable indicator of the overall market sentiment. |
|
| 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. |
|
| | | | |
$700 Price Drop