Security lapses exploited by hackers cost the Binance exchange a loss of about 7,070 Bitcoin (BTC).
The price of Bitcoin continued to soar higher even in the face of this event, as it did not deter speculative adoption. The price surge brings to mind that serious-minded investors can distinguish between the Bitcoin blockchain and the exchange's wallets/storages.
Crypto traders and investors interpreted this as a fear of being wrong by naysayers and forced the price of Bitcoin above the round number of $8000.
This week we'll be taking a look at exciting news and events in the cryptocurrency markets alongside technical price patterns driving the BTC, ETH, XMR prices.
Below, we deploy the Relative strength index to spot the points where the Bitcoin price enters the overbought or oversold territory, and when it exits overbought or oversold territory.
Combining this RSI setup with price action patterns, we get timely and profitable entry and exit points.
BTCUSD (Bitcoin) Technical and Fundamentals
See the break out of RSI level-30 on December 17 ‘18, a sign of the BTC coming out of the oversold area from a weekly chart outlook.
Moving on to April 01 ’19, the RSI again breaks above the level-50, validating an expansion of demand.
BTCUSD: Daily Chart
Looking at the chart above, we see how the Bitcoin price shifts from a bearish trend into a bullish trend. The BTCUSD entered the oversold region as the RSI crossed below the level-30 in combination with triple consecutive bearish accumulation on November 14 ’18.
The BTCUSD exited from the oversold area by a close above the RSI level-30, as well as signaling a regular bullish divergence on December 17 ’18.
A bullish accumulation setup was indicated on the same date building support at 3215.2.
The bulls paused to take profit on February 24, April 11, and a recent one on May 17 ’19.
Major Resistance Levels of Bitcoin (BTC)
19891, 16000, 12000
Major Support Levels of Bitcoin (BTC)
3215.2, 3405.3, 3767.0
ETHUSD (Ether) Technical and Fundamentals
Business tech website ZDNet reported a claim by SRLabs a global hacking research collective on May 17 that only two-thirds of the Ethereum client software running on Ethereum nodes was patched against a crucial security flaw discovered early this year.
ZDNet notes that, should enough malicious nodes flood the network and gain a 51% majority, they could perform double-spends and approve false transactions.
ETHUSD: Monthly Chart
The above monthly chart started with an exit of the RSI overbought zone by a cross below the level-70 on March 01 ’18 after making an all-time high of 886.54.
Following an established low of 83.00, a new bullish accumulation pattern flagged on March 01 ’19 may be satisfactory for a break above of the RSI level-50.
ETHUSD: Weekly Chart
ETHUSD: Daily Chart
Zooming down to the daily chart, the ETHUSD flags a bullish regular divergence pattern on December 17 ’18, as the RSI exits from the oversold area.
Before exiting the oversold region, the pair flags a bullish accumulation setup on December 16, and like a butterfly effect supported a price increase of about 90.68%.
The pair later broke out of a 33day price retracement on February 07 ’19. A break above the RSI level-50 confirmed subsequent retracements and price action patterns on March 05 ’19, April 02 ’19, and April 28 ’19.
RSI overbought levels were confirmed by a breakdown of RSI level-70 on February 24, April 11, and May 18 ’19.
The more recent overbought level on May 18 signals a bearish accumulation setup currently threatened at the moment. Buying into this breakout of bearish accumulation should be done with very low-risk exposure as the pair just came out of the overbought zone.
ETHUSD: H4 Chart
Going way down to the 4hour chart, the Ether price paired against the USD came out of oversold by crossing above the RSI level-30 on April 25 ’19 19:00. From the oversold point, the pair presented chances to scale into the bullish trend on April 29 ’19 19:00, May 06 ’19 03:00, May 10 ’19 19:00, and May 18 ’19 19:00, by a crossover of the RSI level-50.
Just as entry points got signaled, so was profit taking zones in the form of exits of overbought on May 03 ’19, May 07 ’19, May 12 ’19, and the recent one on May 16 ’19.
Critical Resistance Levels of Ethereum (ETH)
1424.30, 742.72, 838.0, 515.28,
Critical Support Levels of Ethereum (ETH)
83.00, 103.20, 148.88
83.17, 102.49, 125.88, 141.0, 159.13, 250.0
Monero (XMR) Technical and Fundamentals
According to a global news report, crypto miners rank in the top three most common malware in April.
Coinhive a popular service used to target unsuspecting computers have closed.
Also on the rise at the moment are multi-purpose trojans that steal private data from databases and backup servers as reported by Check Point.
A new crypto mining malware named Beapy was also detected in April by Symantec, an Americal software company.
XMRUSD: Weekly Chart
The XMRUSD pair came out of oversold on December 17 ’18 by a cross above the RSI level-30.
Coming out of oversold, the XMRUSD continued into a steadily growing bullish trend and the RSI again crossed above the level-50, which indicates an increase in demand for the anonymous crypto as last week closed at 90.405.
XMRUSD: Daily Chart
The bullish Fakey pattern signaled on May 14 ’19 15:00 forced the pair into the overbought territory as shown by the RSI indicator.
Profit taking point was signaled by a cross below the RSI level-70 on May 15 ’19 23:00. Not long after the exit of the overbought region, the pair breaks above hidden bearish accumulation resistance on May 17 ’19 15:00.
The above 1hour time frame starts with a bullish regular divergence of the RSI on May 14 ’19 17:00. A breakout of double bearish accumulation on the same date confirmed the bullish price rally.
An opposite bearish regular divergence in combination with a bearish Fakey pattern was signaled on May 15 ’19 22:00, which led to a price collapse of about 17.9%.
The pair later signaled another bullish regular divergence in combination with a breakout of bearish accumulation on May 17 ’19 16:00.
Above is an update to the 1hour chart confirming the rally following the signaled bullish regular divergence on May 17 ’19 07:00.
Conclusion and Projection
Considering that the analyzed cryptocurrencies are approaching RSI overbought territory from a weekly chart perspective, we look forward to the BTC price attaining the $10,000.00 mark, the ETH reaching $500.00, and the XMR getting to $100.00.
On the other hand, a close below the RSI level-70 from above on the weekly chart will confirm a weakness of the bulls, which could lead to a change in trend, or a ranging market.
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