Double-digit growth was noticed for most of the cryptocurrencies this past week. The bulls were aggressive even though mid-week price action showed a short-lived rebound to local technical support levels as crypto investors took partial profits from the two-weeks surge. Buyers stepped in this past weekend again as several Altcoins and Bitcoin reached attractive price levels, and the bullish trade was renewed. Things point to further strengthening of the crypto market, although some analysts predicted a decent rebound and deep retracement. So far, Bitcoin appreciated more than 90% year-to-date, while this past week’s gain exceeded 11.5%. The market cap was growing steadily, total value breached a significant mark of $250 billion, $142 billion of which belongs to Bitcoin. Altcoins also gained strength in trading volume, the structure of spreads remained the same, while some of the Altcoins soared almost 40% in the last seven days (Binance Coin and Stellar). The second volume-weighted cryptocurrency - Ethereum - printed impressive gains of 34% as its price breached several technical resistance levels, jumping to $280 (mid-week peak) for the first time since September 2018. Ripple added 30% to its price, while Bitcoin Cash and EOS investors were satisfied with 15% appreciation. Litecoin (+7%) and Tether (+1%) were underperforming the overall crypto market. This weekend's close rates, as well as Monday’s price action, should determine further uptrend’s fate. If the sequence of higher highs continued, the bulls would gain more momentum, lifting cryptocurrencies values further north.
Although Bitcoin price bounced off multi-month highs, falling three days in a row, the retracement did not threaten the overall uptrend as 13-days simple moving average held rates from the further slide. Fast RSI oscillator went off the overbought territory, reloading the momentum and bouncing back up on Sunday. Slow MACD trend indicator did not show any sign of a bearish reversal as its lines did not perform the crossover, while the histogram remained in the positive territory. Two threats are still on hands, though. First, the daily close price must appear above the recent peak of $8136.6 in order to avoid the double-top formation. Second, MACD lines have to print another higher high to prevent the bearish divergence. The rest of the technical sentiment is entirely bullish for BTC/USD. Therefore, we’d hold long positions for quite a while until strong reversal signals start weighing on the trend’s direction on the daily timeframe. Shorter timeframes are extremely overbought, but the market players ignore the short-term perspective, targeting further bullish achievements. If and when the blue horizontal static resistance was breached, crypto investors would eye the peak charted in July last year. In that case, take-profit orders should be shifted close to the range of $9937/50 as the round-figure psychological level of $10000 might play a tricky role to those investors who prefer take their money and run.
Ethereum’s local peak (on May 16) allowed us drawing parallel clone of the resistance line from the ascending channel, in which the price stayed since November 2018. A logical rebound happened after that as ETH/USD failed to close the day above the bottom line of the consolidation range which held prices in August - September last year (yellow on the daily chart below). Williams %R oscillator with the period of 13 days charted classic bounce-by-trend continuation pattern, giving a perfect chance to refresh long positions for those traders who missed the initial uptrend. The similar action was noticed on May 9 when the recent bullish trade started (left green arrow in the indicator’s window below the chart). Crypto investors had found the price level of $232.94 as attractive to step in after two-day retracement. As a result, Ethereum edged higher during the past weekend, promising another bullish rally and new local peak. Once the daily close rate appeared above $269.40, the upper band of the resistance range will show the nearest target for the bulls. The upside risk will persist until Williams %R start showing overbought conditions or reversal divergences. Thus, the buy-and-hold trading strategy is still applicable.
Binance Coin had a tough period when its price edged lower to the technical support level around $20 in the previous trading week. However, the bulls gained momentum, adding buying pressure with heavy-volume entries. As a result, BNB/USD had found a support at $20.90 last week, and a long bullish candlestick confirmed the trend’s direction for the nearest future. The weekly result of 42% was the second largest on record. The last time such an impressive rally happened was the week of January 1 2018, when Binance Coin’s price jumped 117%. Two additional technical signals point to further appreciation. First, the rate breached the upper band of the ascending channel (green dotted on the weekly chart below). Second, the bullish breakthrough was charted as BNB/USD breached the resistance curve of the Bollinger Bands indicator, while the spread between lines increased, indicating more considerable volatility. We suggest that the bullish action should continue, while the psychological price levels would determine the speed of strengthening as the technical analysis does not have historical records in this territory.
Bitcoin Cash had filled the gap, which occurred during the plunge in mid-November 2018, according to Coinbase. The profit-taking flows pushed the price lower after the medium-term target has been achieved last Thursday ($452.91 weekly high). However, the Ichimoku Base Line worked well as the support curve, limiting further losses last Friday. The bulls went back to the crypto market on Sunday, following the general market’s sentiment and daily gains exceeded 15%, which was one of the most substantial results among other Altcoins. Ichimoku Cloud trend indicator is exceptionally bullish with the span pointing to northwards continuation, while all lines are in the correct order to proceed the rally. Talking about nearest targets, we’d mention $500.00 as the round-figure resistance where the next profit-taking action could happen. In extension, Bitcoin Cash could surge as high as $626.68, and the highest daily close rate charted on November 6 last year during the bullish retracement.
The main reason for Litecoin’s underperformance was that the price failed to reach the nearest resistance level of $110.90 (weekly peak at $106.90). The lack of further long positions was comprehended as bulls’ weakness, and a significant rebound happened as LTC/USD slid toward $85.30 last Saturday. However, that retracement did not affect the overall technical sentiment as Parabolic SAR remained bullish (dots below the price), and the ADX mainline continued edging higher gradually, indicating strong bullish momentum, while +DI and -DI lines kept the positive surplus. The blue ascending channel is still in play for the bulls, while targets remained the same as per previous trading week. We would not change the trading strategy as it’s too early to mention bearish reversal or any deeper retracements as technical indicators do not have different signals.