On Sunday evening during quiet trade, Bitcoin made a 7% rally in an hour, reaching new highs. Naturally, Ethereum and Ripple followed him.
After this upswing, however, cryptocurrencies experienced a slight decline before stabilizing. Will this happen again? While some market players may want to take their profits already, digital assets have room to rise and support below.
This morning the total capitalization of all digital assets in circulation decreased to $ 274 billion from $ 273 billion on Tuesday. And the average daily volume of trade fell to 84 billion dollars amid the sluggish market activity.
BTC/USD is range-bound with a bearish bias
Although the enthusiasm of traders is now rising and as I said, BTC has space up, I want to say a few things. Firstly, do not confuse this movement with a new trend. Let the trend tell you when it’s over.
Secondly, this is a pure game with volatility. Volatility expands, then decreases. When Bitcoin reached a peak of all times in 2017, the volatility was extremely high. When the main digital asset hit its lowest level in December 2018, volatility was shrunk. Now it is expanding again.
Third, if this is really a reversal of the trend, then it will obey the laws of a 50% retracement. $ 19,770 is the highest level for all time, and $ 3,160 is the low of December, and given the current bullish momentum, the 50% level of that range is at $ 11,500. For the bulls that should look like a reasonable target.
It is possible that the price will consolidate around 8,500 area before targeting 10,000. A failure of move above $ 8,700 could make Bitcoin deeper into the red territory. A clear break below the morning bottom at $ 8,430 will lead the price to test the first support in the $ 8,350 area.
Ripple’s trend is bullish as long as the price stays above $ 0.40
XRP/USD settles above $ 0.4200 after the technical correction from the recent high of 0.4780 on May 16th. Movement above this maximum should attract new buyers and take the price to the first bull’s goal at $ 0.50.
On the downside, the nearest support is at $ 0.4180 (yesterday low), which breakthrough may trigger further downside momentum for testing $ 0.4000 (the 200-day SMA is located at 0.3970 on the hourly chart).
SMA 200 turned upside after the price of Ethereum consolidates
ETH/USD fell from $ 279.41 on Monday to $ 261 earlier today. The price currently is over 200 SMA, 50 SMA, and 20 SMA. And the fact that the 200-day simple moving average (SMA 200) turned upward for the first time since June 2018 can give the bulls further confidence.
If we look at the Bollinger Bands indicator, however, we will see that external borders are narrowing, indicating a decline in market volatility. In addition, the Relative Strength Index (RSI) is at the border to the overbought area. On the downside, we have immediate support at 245.24 (Sunday low) followed by $ 231.61.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.