Bitcoin (-2.87%), Ethereum(-1.8%), and other altcoins are losing steam in the vicinity of their resistance levels. Notably, the level of $10,000 has a special meaning for traders, so its breakout is becoming so difficult. The majority of the digital currencies lose between 2 and 3%, with the notable exceptions of STEEM( +16.48%), MonaCoin (+1%), and NANO (+5.1%). In the Ethereum-based tokens, there is a mix of red and green assets. On the top cap projects, MKR(-6.73%) is the worst performer, as CRO (+0.93%) still is afloat. Among mid-cap projects, Bitbook Gambling (BXK) is the best gainer, advancing 33.23%, followed by SOLVE (+11.7%), and QNT(+8.12%).
Fig 1 - 24H Crypto Sector Heat Map
The market capitalization of the crypto sector eases $6.57 billion (-2.46%). The traded volume in the last 24-hour cycle was $40.14 billion, 9.45% less than the previous day. Finally, Bitcoin dominance eases a tiny 0.06% and currently is 67.47%.
News Sentiment Analysis
- Ethereum's premier coin mixing service is now permissionless (Coindesk)
- Three bitcoin mining metrics point to uncertainties in a post-halving era (The Block)
- Bitcoin driving institutional interest is a "land-grab" phase: Tuur Demeester (AMBCrypto)
- Bitcoin hash rate continues to fall; will miners return with "profit incentives"? (AMBCrypto)
- Company That Sued FTX and Ripple Now Sets Its Sights on BitMEX (Coindesk)
- Bitcoin Demand Pushes Tether Below $1 for Longest Stretch Since March (Coindesk)
- Uniswap goes live with v2 of its non-custodial exchange protocol (The Block)
- Class action lawsuit filed against Block.one over allegations about its EOS initial coin offering (The Block)
- Bitcoin Halving Aftermath: BTC Transaction Fees On the Rise As Miners Seek Higher Incentives (CryptoPotato)
- Bitcoin and Gold face setbacks as promising vaccine trial curbs safe-haven demand (Bitcoinist)
- Trump says he's been taking hydroxychloroquine to protect against coronavirus, though it's not proven to help (Marketwatch)
- New car registrations in Europe fell 76% in April as coronavirus lockdown hit sales (CNBC)
- South Korea jumps 2%, with Asia stocks getting a boost as hopes of a coronavirus vaccine rise (CNBC)
- India and Bangladesh brace for the strongest storm ever recorded in the Bay of Bengal (CNN)
- Trump threatens to permanently pull funding from WHO and 'reconsider' US membership (CNN)
- Asian markets gain on new hope for coronavirus vaccine (Marketwatch)
- European markets head for higher open as hopes rise that a coronavirus vaccine can be found (CNBC)
Investors' sentiment is positive on the news of hopeful vaccine test results. The Asian markets gain after an excellent US market session with the Dow-30 moving over 900 points (+3.85%). Japan's Nikkei gains currently +1.48%, as Hong Kong's Hang Seng Index jumped 1.83%. Also, The Shanghai Composite SHCOMP advances 0.75% while the Shenzhen Composite moves up 1.08%. South Korea's Kospi surges 2.26%, and Taiwan's Y9999, is up by +1.11%, Singapore STI, also up 1.78%, Malaysia FBMKLCI, gains 0.77% and Indonesia JAKIDX climbs +1.82%. Finally, Australia’s S&P/ASX 200 rose +1.89%.
The European stock exchanges are expected to open higher on Tuesday, following the positive close on Monday, with All European bourses closing with advances of over 4%, fueled by the promising results of Moderna's coronavirus vaccine tests and the easing of the lockdown restrictions around the continent. London's FTSE futures is 19 points higher at 6,067, Germany's DAX is expected to open 43 points up at 11,101, and France's CAC 40 futures sows a 20 points higher opening, at 4,518, and the Italian FTSE MIB future point for a 94 points higher opening.
Fig 2 - Total Market Daily
The total market shows a corrective candlestick, as was expected yesterday. The price still moves near the +1 sigma line of the Bollinger bands, and well in the center of the regression channel, as the RSI drifts horizontally near the 60 level. The technical factors did not change much from their previous values.
- Bollinger bands slope is positive +
- Price above the +1 sigma line +
- Linear regression channel points upward and price in the upper side of the channel +
- Price above its 20- 50- and 200-day SMA +
- 50-SMA crossover to its 200-SMA +
- RSI drifts at the 60 level N
- Price bounce near $271.763B -
Total Market Outlook
The short-term outlook points for another day of choppy market until the resistance of $271.763B cannot be broken. That should be in sync with Bitcoin crossing its $10K mark. The mid-term outlook is still bullish, as shown by most of the technical factors.
Fig 3 - Bitcoin 4H Chart
Bitcoin is creating an ascending triangular structure below its $10,000 key level. The price currently moves in the middle of the regression channel and also touching the Bollinger mean line, as the RSI weakens and is now near the 50 level. The $9,400 level is acting as support, and, currently, $9750 is the resistance to break. Its technical factors are mostly unchanged from yesterday's figures.
- Price above its 50- and 200-period SMA +
- The slope of the Linear Regression Channel is positive +
- The price is moving in the upper half of the regression channel +
- The price moves near the mid-line of the Bollinger bands N
- The Bollinger bands point sideways N
- RSI descending near the 50 level -
Currently, Bitcoin's price is directionless short-term. The underlying trend is bullish, so we expect a break of the triangle to the upside. Buyers should wait for a break of the $9,750 resistance. A break below $9,400 could drag the price to $9,240.
Fig 4 - Ethereum 4H Chart
Ethereum has broken the descending channel to the upside. After touching the mid-line of the regression, channel it is moving sideways, consolidating its past gains. The price is touching the +1sigma line of the Bollinger bands as the RSI retraces slightly from the 70 level. The technical levels keep holding strong.
- Bollinger bands ascending +
- The price touches the +1 sigma line +
- The price above its 50- and 200-SMA +
- The slope of the linear regression channel is positive +
- The price broke out above the short-term descending channel +
- RSI ascending above 70 +
Ethereum is consolidating its gain, but all indicators point to mid- and short-term bullish bias. Therefore, since it is on consolidation mode, we need to be attentive to a strong bullish candlestick that closes above $216 as a confirmation of another upward leg that may challenge the $220 level achieved on April 30. The pivot levels remain the same.
Fig 5 - Ripple 4H Chart
Ripple moves in an ascending channel after the sharp drop made on May 10. XRP is fighting resistance at about 0.20535 and has been supported by its 50-period SMA, as it struggles to move above its 200-SMA. We see that it is making higher highs and lows, So the bias remain slightly upwards, as the RSI has turned down, and is in the middle of the range.
- Linear regression channel has a positive slope +
- Short-term regression channel also with positive slope +
- Price continues making higher highs +
- Price between its 200- and 50-SMA N
- Bollinger bands move sideways N
- RSI descends to the middle of the range N
- The advances are poor and, unlike BTC and ETH, it has not recovered from May's 10 losses -
Ripple continues behaving weaker than its peers. The technical factors are mixed. The mid-term structure is still bullish, but the short-term indicators show no conviction by its buyers. Traders should wait for a break above the current $0.20535 resistance line with a potential target at the top of the channel (about $0.21). Sellers should wait for a move below the bottom of the channel.