Bitcoin(+0.89%) shed $500 (-2.9%) in minutes on heavy volume, on no news in the early morning dragging its price to the $9,400 level and losing most of yesterday's gains. The rest of altcoins has followed the same path, as ETH(0.25%) struggles to go back above the $200 level, Ripple (-0.55%) still keeping its $0.20 level, although moving below yesterday's values. Despite all this, some cryptocurrencies achieved significant advances, such as IOTA (+8.6%) and EOS (+3.21%). On the Ethereum-based token sector, there were also solid performers, such as HEDG(+5.25%), OMG(+32.2%), and VEST(+179.94%).
Fig 1 - 72H Crypto Sector Heat Map
Despite this decline, the crypto sector's market cap has risen by 1.84% and is at $256.270 billion, as the volume went up 27%, to $62.695 billion. Also, Bitcoin dominance still keeps moving up and is now at 67.84%.
News Sentiment Analysis
- Current interest in bitcoin beats two years all-time high (Cryptopolitan)
- Libra Association adds 3 members, including Singapore investing giant Temasek and crypto VC Paradigm (The Block)
- Visa files a patent for 'digital fiat currency' – and the filing points to a central bank use case (The Block)
- Aggrieved Investors Mull Suing Telegram Over Canceled TON Blockchain Project (Coindesk)
- Ethereum has More Bitcoin Locked up Through wBTC Compared to Bitcoin’s LN (Nulltx)
- Market Wrap: Bitcoin’s Price Up 12% Since the Halving (Coindesk)
- Ransomware Gang Demands $42M, or it Releases Trump’s ‘Dirty Laundry’ (Cointelegraph)
- Have crypto-analytics taken on the role of Orwell’s ‘Big Brother’? (AMBCrypto)
- CoinMarketCap updates exchange ranking system to include Web traffic, Binance now ranks first (The Block)
- Illicit bitcoin transactions remain below 1% of the total amount, says Elliptic (The Block)
- After years of calling for a weaker currency, Trump declares ‘strong dollar’ a good thing (MarketWatch)
- European markets seen higher as investors monitor economic data and reopening efforts (CNBC)
- Asian markets inch higher as pandemic worries continue to weigh on investors (MarketWatch)
- Growing tensions over China’s handling of coronavirus could lead to a ‘much worse’ trade war, investor says
- Taiwan chipmaker TSMC's $12 billion Arizona factory could give the US an edge in manufacturing (CNN)
- NYSE to reopen trading floor to a subset of brokers in late May (CNN)
- China’s factory output posts first increase for 2020 but consumption still weak (CNBC)
The cryptocurrency markets have experienced a pullback as investors realized profits, but the upward trend is still strong, with over 12 percent Bitcoin growth following its halving event last Monday. The Asian markets are moving up on Friday, prompted by the news of China's April industrial production. Japan's Nikkei 225 NIK, inched up (+0.61% ) slightly in early morning trading. South Korea’s Kospi gained 0.24%, and Australia’s S&P/ASX 200 XJO, is up 1.08%. Hong Kong's Hang Seng HSI (0.00%) is flat for the session, while the Shanghai Composite SHCOMP advanced 0.12%.
European markets are seen to open higher, with Britain’s FTSE 100 seen around 50 points up at 5,792, Germany’s DAX is poised to gain about 112 points to 10,449, France’s CAC 40 is estimated to climb by approximately 35 points to 4,308, and Italy's FTSE MIB futures point to +70 points opening at 16,815.
Fig 2 - Total Market Daily
The total market chart is correcting Thursday candlestick's top of $269.4B. The retracement found buyers at the bottom of Thursday's price range and currently is moving in the middle of the regression channel, and near the +1 sigma line of the Bollinger bands, as the RSI stopped its upward move.
- Bollinger bands slope is positive +
- Linear regression channel points upward +
- Price above its 20- 50- and 200-day SMA +
- Price rejected near the previous top -
- 50-SMA below its 200-SMA -
- RSI curved downwards at the 65 level -
Total Market Outlook
We see a healthy correction of what has been a 12 percent increment in 3 days. As the weekend approached, many traders may be tempted to take profits. The trend is still healthy, but we may experience some choppiness short-term.
Fig 3 - Bitcoin 4H Chart
Bitcoin experienced a bearish engulfing 4H Candle that went down to $9,240. There, it bounced off of its 50-period SMA, in confluence with the mid-Bollinger line, and headed up again. We also see the price still moving near the +1 sigma line, as the RSI has receded to the 60 level.
- Price above its 50- and 200-period SMA +
- The slope of the Linear Regression Channel is positive +
- The price moves above the +1 sigma line of Bollinger bands +
- The price is now moving in the upper half of the regression channel +
- The Bollinger bands point upwards +
- Price made a bearish engulfing candle at a significant top -
- RSI retreated to the 60 level -
Bitcoin is recovering fast from its early-morning sell-off, and most of the technical factors still show a positive sign. Thus, we continue keeping our bullish bias on BTC.
Fig 4 - Ethereum 4H Chart
Ethereum's pullback in the Early morning brought its price near to the mid-Bollinger line, and below the $200 key level, although it has recovered it currently. Now ETH is moving again near the +1 sigma line and above its 50-period SMA.
- Bollinger bands ascending +
- The price above its 50- and 200-SMA +
- The slope of the linear regression channel is positive +
- The price still inside the short-term descending channel -
- RSI is retraced to below 60 -
Ethereum is still moving inside the descending channel, only reacting to the strength of Bitcoin. It shows signs of recovery, such as the price above its pivot point, but buyers need to see its price above the 208 line at least to start thinking the correction is over.
Fig 5 - Ripple 4H Chart
After its recent drop ripple bounced off from the support area, supported by its 200-period SMA, so currently is moving above it, and above the $0.20 level. XRP's price is approaching its +1 sigma line, which is positive, but it could not still break the $0.2047 level, which is in confluence with its 50-period SMA. The RSI still keeps its positive ascent, though.
- Price above the $0.20 level +
- 50-SMA still above the 200-SMA +
- RSI ascending and above the 50 level +
- Linear regression channel has a positive slope +
- Price has entered into the regression channel +
- Bollinger bands move upwards +
- Price between its 200- and 50-SMA -
Even when the price action does not seem too positive, XRP's technical factors are mostly bullish. Thus, we see the potential to break the $0.2047 level and above its 50-SMA to test the $0.22 level again. But the breakout of the $0.2047 level has to happen first.