Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Binance Coin, Bitcoin SV, Stellar, Cardano: Price Analysis May 31
Most major cryptocurrencies have pulled back. Can they spring back up or will they spend some time in a range?
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Market data is provided by the HitBTC exchange.
Michael Novogratz, founder and CEO of cryptocurrency merchant bank Galaxy Digital, believes that the adoption of the blockchain technology by mainstream technology companies and interest by Wall Street firms helped start the rally. He now expects Bitcoin to remain range bound between $7,000 and $10,000.
Bitcoin has seen a massive run in 2019. When the price is appreciating so much, it is unlikely that many people would spend their Bitcoin. Research by Chainalysis suggests that only 1.3% of economic transactions for Bitcoin came from merchants in this year.
Considering the high volatility, Susquehanna’s Bart Smith believes that Bitcoin investment is “certainly speculative.” However, we believe that with the right strategy, the risk in trading cryptocurrencies is no greater than trading in equities or any other traditional asset class. What do the charts project for major coins? Let’s find out.
Bitcoin (BTC) spiked up above $9,000 on May 30 but quickly reversed direction and fell to a low of $8,034.31 within a few hours. Currently, the bulls are attempting to hold the price above $8,000. The trend remains bullish as both the moving averages are sloping up and the RSI is in the positive territory. But the negative divergence on the RSI warrants caution.
If the BTC/USD pair rebounds from the current levels and rallies above $9,053.12, it can reach the next overhead resistance of $10,000. However, if the bears sink the pair below the 20-day EMA, it can slide to the next support at $7,413.46. The digital currency will lose momentum if this support also breaks.
After the quick fill and stop loss hit on our trade recommendation, we will play it safe and avoid suggesting short-term positions. We will wait for a reliable buy setup to form before proposing a trade.
Ethereum (ETH) spiked on May 30 and reached the overhead resistance zone of $300–$322. As expected, it quickly turned around and plunged to the 20-day EMA. The bulls are currently attempting to hold the price above the 20-day EMA. If successful, another rise to the overhead resistance zone is probable.
Though both the moving averages are sloping up and the RSI is in the positive zone, the negative divergence on the RSI is giving a warning signal.
A breakdown of the 20-day EMA can sink the ETH/USD pair to $225.39. If this support also breaks down, the fall can extend to the 50-day SMA. We do not spot a bullish pattern at current levels.
Ripple (XRP) attempted to scale above the overhead resistance zone of $0.45–$0.47919 on May 30 but failed. This resulted in a quick drop to close to the 20-day EMA. Currently, the bulls are attempting to keep the digital currency above the 20-day EMA, which is trending up. If successful, we might see another attempt to push the price above the overhead resistance zone and towards the target objective of $0.60.
On the other hand, if the XRP/USD pair plummets below the 20-day EMA, it can dip to the $0.37835–$0.35660 support zone. A breakdown of this zone is likely to signal an end of the recovery. Therefore, traders can keep the stop loss on the long positions at $0.35.
Bitcoin Cash (BCH) is in an uptrend. It has been trading above the 20-day EMA and below the resistance line of the ascending channel for the past few days. A breakout of the channel is likely to propel it to $638.99.
The RSI has formed a large negative divergence, which is a bearish sign. If the BCH/USD pair breaks down below the 20-day EMA, it can slip to the 50-day SMA. Below this support, a dip to the support line of the channel is probable. We will wait for a reliable buy setup to form before recommending a trade in it.
EOS triggered both our proposed buy level and the stop loss within a few hours. It thereafter plunged to the support of $6.8299 where buying emerged. Currently, the bulls have again pushed the price above the channel. They will now try to scale the overhead resistance at $8.4790. Above this level, a rally to $9 and above it to $9.60 is possible..
Both the moving averages are sloping up and the RSI is in positive territory. This shows that the bulls are in command. Our bullish view will be invalidated if the EOS/USD pair reverses direction from close to $8.4790 and breaks down of $6.8299.
The spike in Litecoin (LTC) stalled at $120.1518. Hopefully, traders would have closed 50% of the long positions around these levels, as suggested in the previous analysis. The trend remains up as both the moving averages are sloping higher and the RSI is in the positive territory. We are keeping a close watch on the negative divergence on the RSI.