Last week, the total crypto market capitalization broke out of overbought area coming from a high of 281.2 Billion USD to 224.8 Billion USD, showing a decline in demand for cryptocurrencies and possible correction of the bullish price gains across the crypto market.
Let’s take a look at the technical price patterns driving a few of the top cryptocurrencies as well as recent fundamental drivers in the space.
BTCUSD (Bitcoin) Technical and Fundamentals
Based on a report by Independent on June 05, Oliver Isaacs, a bitcoin price analyst, believes that the price of the BTC will hit $25,000 around 2019.
He believes the price is on the increase based on geopolitical, regulatory, and technological drivers. The trade war between the U.S and China draws the attention of investors to the use of Bitcoin as a hedge on investment.
Tim Draper also noted the increase in mainstream adoption from companies such as Amazon, Microsoft, Starbucks, now accepting crypto payments.
Draper went further to project that the price of Bitcoin will hit $250,000 by the Year 2023.
SFOX analysts hold a more pessimistic position, sighting the current price growth as fear of missing out.
BTCUSD: Daily Chart
The Bitcoin price entered overbought territory on May 02 ’19, indicating an increase in buying pressure, then later followed by a breakout of bearish accumulation resistance on May 08 ’19, setting support at 6201.5.
After a 45.13% increase in the price of the BTC, the paired exited the overbought region on May 16 ’19 to later complete a 58.1% increase from the initial entry of the overbought zone.
A regular bearish divergence pattern and an exit of the overbought territory was signaled on May 30 ’19, setting resistance at 9109.0. The bulls still hold on to possibilities of a bullish hidden divergence setup for an upward surge in the price of the BTC.
BTCUSD: 4HOUR Chart
Taking a step lower to the 4hour time frame, we notice a dark cloud cover candlestick pattern signaled on May 30 ’19, with established resistance at 9109.0.
On May 31 ’19 16:00 the price decline was opposed by a breakout of bearish accumulation resistance for a retracement of the bearish trend, before resuming the bearish trend on June 03 ’19 04:00 following a break of critical support.
The bearish trend entered and exited the oversold area by a breakout of the Relative Strength Index (RSI) level-30 on June 05 ’19 00:00. Later on June 10 ’19 08:00, the pair triggered a breakout of double bearish accumulation on June 10 ’19 08:00, forming a double bottom price pattern with the support of 7501.5.
BTCUSD: 1HR Chart
Intraday traders from the 1hour time frame enter a long position on June 04 ’19 23:00 after the pair exited oversold territory.
A triple bottom chart pattern signaled in combination with a regular bullish divergence setup on June 10 ’19 06:00 forcing the crypto pair into a sudden price increase of about 5.14%.
Critical Resistance Levels of Bitcoin (BTC)
9109.0, 8352.3, 6102.0
Critical Support Levels of Bitcoin (BTC)
8005.0, 8265.0, 7501.5, 7497.9
7501.5, 7455.0, 7497.9, 7611.3
ETHUSD (Ether) Technical and Fundamentals
According to a report published on June 06, by Binance research, Ethereum developers make up a high number of decentralized Finance app builders.
The central pivot of the DeFi ecosystem is made up of lending and borrowing platforms that support blockchain assets.
Tokens such as MakerDao (MKR) and Stablecoin Dai (DAI) are the significant blockchain assets used on DeFi.
ETHUSD: Monthly Chart
Ether (ETH) exits overbought after making a height of 1424.30 on January 01 ’18 at the beginning of the 2018 crypto winter. The price decline continued after a bearish accumulation pattern on July 01 ’18 and October 01 ’18.
The crypto winter ended after a bullish accumulation and broke above RSI level-50 on March 01 ’19 and May 01 ’19.
ETHUSD: Weekly Chart
The crypto winter ended after a breakout of bearish accumulation resistance on December 17 ’18 that was later followed by a bullish accumulation pattern on March ’19 with support at 130.55.
Last week closed bearish after a double bullish accumulation pattern on May 27 ’19 with support established at 229.70. The price decline shows a slight weakness in the bullish trend.
ETHUSD: Daily Chart
From a daily time frame perspective, the ETHUSD signaled a bullish Fakey pattern on March 05 ’19, setting support at 125.88, after the upbeat swing exited overbought on February 24 ’19.
The bullish trend was built up of a breakout of bearish accumulation resistance on April 02 ’19 with support at 141.0, and double bullish accumulation on April 28 ’19. Profit taking opportunities were presented after the Bulls exited overbought area on April 11 and most recently on May 30 ’19 for a 105.5% price increase.
A regular bearish divergence pattern signaled in combination with an exit of overbought on May 30 ’19 with resistance set at 289.42, initiating a retracement that may prepare the price for a bullish swing.
ETHUSD: H4 Chart
Critical Resistance Levels of Ethereum (ETH)
1424.30, 515.28, 242.62
170.00, 187.98, 289.42
Critical Support Levels of Ethereum (ETH)
83.00, 130.55, 148.88, 229.70, 289.42
125.88, 141.00, 148.88
231.00, 229.70, 226.01
MONERO (XMR) Technical and Fundamentals
Cybersecurity firm Trend Micro recently announced a malware called BlackSquid that targets and infects web servers in a published blog post on June 03.
There are three ways this malware infects a system. They include a website hosted on an infected server, removable/network drives.
XMRUSD: Monthly Chart
Monero (XMR) had its fair share of the crypto winter after the last phase of the price decline was signaled by a series of four bearish accumulation candlestick patterns on October ’18.
The price decline came to an end after a bullish close above the bearish accumulation resistance of 57.00 on April 01 ’19, with established support at 38.50.
The RSI oscillator creeps above the level-50 showing a further increase in the bullish trend and a possible projected price target of 150.00.
XMRUSD: Weekly Chart
December 17 ’18 was an important date in the crypto market as significant cryptos exit oversold on December 17 ’18, marking an end to the crypto winter and the beginning of a bullish trend.
The bullish trend was reinforced by a breakout of bearish accumulation resistance of 56.80 on March 25 ’19; and another breakout of hidden bearish accumulation on May 06 ’19 (60.106).
A bearish Fakey pattern was signaled on June 03 ’19, setting up resistance at 99.00.
XMRUSD: Daily Chart
From a daily time frame, the XMRUSD enclosed in an ascending channel built from a bearish and bullish divergence setup on May 30 ’19 and June 10 ’19.
The crypto pair is set for an upbeat swing after setting support at 81.206 and 81.98 respectively.
Critical Resistance Levels of MONERO (XMR)
449.18, 150.0, 379.90, 142.71, 131.03, 124.99, 57.0
97.00, 98.98, 99.00
Critical Support Levels of MONERO (XMR)
38.50, 50.373, 60.106
65.545, 77.51, 85.652
Conclusion and Projection
The cryptocurrency market continues to maintain a generally bullish outlook, even in the face of declining total market capitalization.
We look forward to furthering price rally after a clear bullish trigger on the 4hour and daily time frames.
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