We eventually came to the close of April and the long-awaited breakout of bearish resistance is signaled at the opening price of May’19. By this, a bottoming is established on the monthly chart and the bulls have a strong hold on the Bitcoin price. Come along as we identify interesting price setups and news announcements in the industry.
Market strategy firm Fundstrat Global Advisors says bitcoin price may pull back soon, in a Bloomberg report. He advises investors to buy the dips upon correction.
Robert Sluymer an analyst for Fundstrat in a comment to traders said that although bitcoins current strength marks the beginning of a longer bullish trend, the accrual phase is not over.
From the analyst circle which includes Tom Lee, this week expressed his optimism on the coming year stating that 2020 should see bitcoin standing in new momentous highs of over $20,000. This comes in the wake of bitcoins November collapse of which Sluymer had foreseen the trouble ahead while warning of the difficulty of bitcoins technical robustness.
BTCUSD: Daily Chart
If you've seen the weekly chart of the BTCUSD, you will notice the consecutive bullish closing candles.
The daily chart, however, signals the weakness of bears as the bulls signal hidden bullish divergence on 29 March '19.
Towards the last days in April, the daily chart shows expanding and rising channel, built from opposing bearish and bullish divergence patterns on 25 and 28 April respectively. The most recent move being the bullish divergence is responsible for shooting the Bitcoin price beyond the $6000.00 point.
BTCUSD: 4-HR Chart
A view from the 4hour chart reveals weakness on the part of the bears as they give way to buying pressure in the form of a breakout of bearish accumulation on 27 April '19 11:00 and 01 May '19 19:00.
Upon hitting the $6000.00 round number, the pair began to show resistance as the pair broke below bullish accumulation support on 03 May '19 and bearish accumulation on 04 May '19 23:00.
The Bitcoin price is held in a range while the MACD descends, indicating a strong presence of bulls.
Critical Resistance Levels of Bitcoin (BTC)
Critical Support Levels of Bitcoin (BTC)
3939.0, 5055.0, 6190.0
5577.5, 5714.10, 5301.0, 5351.0
5577.5, 5714.1, 5863.4
ETHUSD (Ripple) Technical and Fundamentals
Justin Drake a researcher for Ethereum said that by June end, the developers' team expects to prepare code specifications for zero. He also added that simplifications of code were coming through “which is great and the procedure of fine combing is also for finding these final bugs”.
The Beacon chain or Phase zero is the title of the first shift of the Ethereum network from proof of work POW to POS consensus algorithm. The shift is part of major network evolution to Ethereum 2.0 set to initiate a new block validation system where the key role on block proposals belongs to validators in place of miners. Phase zero’s first pre-release was in January.
The second major piece of the Ethereum network update sharding signifies a major feature that breaks up transaction processing between smaller groups of nodes to boost the capacity of the blockchain. Etherum core developer Hudson James of late announced the funded third-party audit of the Application Specific Integrated Circuit (ASIC)-resistant PoW algorithm ProgPow. In past meetings held by developers, a recurrence and smaller hard forks were being considered for implementation.
ETHUSD: Weekly Chart
The above weekly chart illustration reveals the price of Ether in an expanding and descending channel.
The upper and lower bound of the channel are formed by bullish and bearish divergence patterns, with the lower bound signaled on 17 December '18 and upper still tentative.
A dead cross of the MACD will confirm the bearish hidden divergence, while a price close above the current resistance level will show an increase in bullish sentiment.
ETHUSD: Daily Chart
Following a threat of bearish divergence on the weekly chart, the daily chart shows deep price retracements while maintaining an upward trend.
The most recent pattern is the bullish hidden divergence setup on 28 April '19, which is confirmed by double bullish accumulation patterns and serving as a continuation of the bullish trend.
Critical Resistance Levels of Ethereum (ETH)
181.21, 176.76, 171.60
Critical Support Levels of Ethereum (ETH)
83.0, 103.2, 130.55
102.49, 143.83, 148.88, 159.13
157.18, 148.88, 161.01, 163.79, 165.56, 167.86, 166.15
Binance Coin (BNB) Technical and Fundamentals
Margin trading functionality has recently been added as updates to the Binance API for nine trading pairs.
According to a Reddit user, the isMarginTradingAllowed flag is now enabled for BTCUSDT, BNBBTC, BNBUSDT, ETHBTC, ETHUSDT, TRXBTC, TRXUSDT, XRPBTC, and XRPUSDT.
The initially added variable to the API is “isSpotTradingAllowed,” while the other is “isMarginTradingAllowed.” The variable names hint that Binance is implementing margin trading functions.
BNBUSD: Daily Chart
Above, the daily chart of the BNB coin shows the pair enclosed in a channel, which is an indication of the overbought nature of the altcoin on a weekly and monthly chart perspective.
Ranging between April 13 '19 and May 04 '19 May 04 '19 the channel was built from opposing bullish and bearish divergence setups, with the bearish divergence being the current pattern.
BNBUSD: H4 Chart
Also showing bullishly overbought is the 4hour chart as the bulls advance towards the previous all-time high.
Bearish sentiment was initialized by bearish accumulation on April 20, followed by a rejection of bullish pressure on April 22.
The bulls later scooped up intraday oversold prices following a bullish hidden divergence pattern was confirmed by a bullish accumulation setup on April 24 ’19 07:00.
From this point, the pair starts a range which is suitable for swing trading.
Critical Resistance Levels of Binance Coin (BNB)
25.329690, 244489665, 24.9868163
25.8297807, 25.2033104, 24.1357094, 25.1911331
25.5089678, 25.38228040, 26.0156864, 26.6645550
Critical Support Levels of Binance Coin (BNB)
19.7833474, 21.07560, 22.3080690
8.5216040, 15.6316457, 16.342920
Conclusion and Projection
Trading with a protective stop cannot be overemphasized as the cryptocurrency market has bottomed across major currencies. HODLing bitcoin and altcoins on exchange platforms, on the other hand, maybe a safer alternative to trade cryptocurrencies at this point.
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