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Eyes Drop Below $10K
BTC: Price: $10,600 | MCAP: $190 billion | 24-Hr Volume: $27.92 billion
Short-term trend: Pullback
Bitcoin could fall below $10,000 this week as a strong sign of buyer exhaustion have emerged on the weekly chart in the form of “gravestone doji” candle.
The bearish case is supported by the 5-day moving average's (MA) drop below the 10-day MA. Further, the Chaikin money flow index has retreated sharply from 0.39 to 0.19 in the last five days – a sign of weakening buying pressure.
And last but not the least, the cryptocurrency seems to have established a bearish lower high above $12,448 over the weekend.
As a result, BTC could drop into four digits this week and test support at $9,840 (5-week MA). A violation there would expose the May 30 high of $9,097 (Bitstamp prices).
The case for a price retreat into the four digits would weaken if bitcoin jumps above $12,450, invalidating a bearish pattern on the 4-hour chart. That would open the doors to a retest of the recent high of $13,880.
Long-term trend: Bullish
Bitcoin closed last month with 25.89 percent gains, confirming a five-month winning streak, which is the longest since 2017.
With the double-digit gains, the cryptocurrency further cemented the falling channel breakout witnessed in April. The 5- and 10-month moving averages are trending north, indicating a bullish setup. As a result, the path of least resistance is to the higher side.
Also, a number of bullish price drivers are lined up over the next few months, according to Alex Kruger, a prominent technical and fundamental analyst. As a result, investors may view any pullback to levels below $10,000, as just another chance to get involved in the bull market.
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Holo Is So HOT Right Now HOT: Price: $0.00208 | MCAP: $269.2 million | 24-Hr Volume: $47.6 million
Short-term trend: Cautiously bullish
HOT is today's best performing crypto within the top 100 at CoinMarketCap, up 15.97 percent over a 24-hour period after a small rally brought prices back above the pivot point as per Fibonacci retracement theory.
If prices continue to hold above $0.00187 then a case for pushing toward the 23.6 percent Fibonacci level at $0.00232 can be made if its backed by consistent and strong levels of bullish volume.
Long-term trend: Bullish
The trend overall remains bullish despite the crypto market's recent wild fluctuations, thanks in part to bitcoin's drop in price over a short period, from $13,800 down to $10,300 back to the $11,000 level.
If the daily RSI drops below 50 and price falls lower than $0.00167 consider the trend switching to the bears for greater control over the direction of the primary trend.
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Decred Clings On DCR: Price: $31.28 | MCAP: $829.3 million | 24-Hr Volume: $185.8 million
Short-term trend: Pullback
In the short-term the bulls have their work cut out for them after recent market activity brought prices back below $32 to a low of 29.70 before prices rose slightly on today's open, currently changing hands for $31.28.
However, given yesterday's long red candle body, it will be hard to match in equal bullish fashion based on today's current trajectory ruling out the possibility for a bullish reversal from the current pullback. If prices break lower, consider a retest of the 100-day moving average (DMA) (marked blue) at $26.46 and an opening for a shot at a cheaper bid.
Long-term trend: Bullish
The trend remains bullishly bid as long as prices remain above the 100-DMA on the daily chart, with a contention for the long-term trend occurring should it pass and close firmly below.
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The sell-off in Tron's (TRX) bitcoin (BTC) denominated exchange rate ran out of steam over the weekend, as expected by @CryptoPhenom1 and the cryptocurrency is currently changing hands just below 300 sats.
The prediction was based on the bullish divergence of the 4-hour chart relative strength index. A bullish divergence, an early warning of a bear-to-bull trend change, occurs when the RSI creates higher lows as opposed to lower lows on price.
Further, the bullish divergence was accompanied by an uptick in buy volumes (green volume bars).
The bounce from 280 sats, however, is struggling to find acceptance above the psychological resistance of 300.
As per the daily chart, 304 sats (May13 low) is a strong resistance. A repeated failure to beat that level could entice sellers, possibly leading to a retest of the recent low of 267 sats. |
A sustained rise in bitcoin's price will attract mainstream attention and bode well for crytpo industry, Justin Chow, the Head of Business Development and Asia for Cumberland – a DRW Company which is one of the world's largest liquidity providers in cryptocurrencies, said while talking to CoinDeskLIVE last week.
Chow's argument is likely based on legendary trader George's Soros' theory of reflexivity, which states that a two-way feedback loop exists in markets in which investors' perceptions affect that environment, which in turn changes investor perceptions.
For instance, a sustained rise in an asset's price is taken by many as a sign of improving fundamentals. That in turn attracts mainstream attention and more money into the sector, resulting in a further improvement in fundamentals and a bigger rise in price.
This type of a positive feedback loop is often observed in nascent industries like cryptocurrencies and blockchain. Also, it is widely believed that the circular relationship between cause and effect continues until it reaches a breaking point. For instance, internet driven rally in tech stocks ended up in a bubble in late 90s.
The bull market of 2017 did attract mainstream attention. Observers, however, believe it was purely a speculative bubble with very less institutional participation. As a result, the fundamentals barely improved.
This time, however, the institutional participation has gone up, according to Chicago's Mercantile Exchange. |
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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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Buyer Exhaustion