Crypto review for May 20 - Bitcoin at a critical level: Will it break out or fail?

Cryptocurrencies have advanced slightly, with Tezos (+5%), ZCash (+18.68%), NANO(+18.7%), and STEEM(+25.5%) being the best performers in the last 24 hours. Still, the main coins moved marginally up, as Bitcoin(+1.34%) is facing resistance levels. On the Ethereum-based tokens, OmiseGO(+18.85%), and THETA( +15.84%) are leading the most capitalized projects, followed by LINK(+4.53%), CRO/+4.05%) and MKR(+2.93%).

Fig 1 - 24H Crypto Sector Heat Map

The market capitalization is currently $264.281 billion, 0.12% higher than on the previous 24-hour cycle, with a traded volume of 37.854, 5.7% less than on Tuesday. Finally, Bitcoin dominance is marginally down, at 67.36%.

Top 10 Performers

Source (CoinMarketCap)

Bottom 10 Performers

Source (CoinMarketCap)

News Sentiment Analysis

Crypto-related news

• Square Unveils Bitcoin Auto Payments Tool (Coindesk)

• Bitcoin Mining Difficulty Drops by 6% In First Adjustment After Halving (Coindesk)

• A Former Coinbase Lawyer Is About to Become Acting Head of US Bank Regulator (Coindesk)

• Litecoin and Atari team up in anticipation of the Atari Token's launch (The Block)

• Bitcoin: North America may see its biggest mining pool in Texas (AMBCrypto)

• Bitcoin's trillion-dollar market might not need high degrees of market adoption (AMBCrypto)

• Academic super-computers targeted by malicious crypto miners: report (The Block)

• AT&T Loses Bid to Dismiss $1.8M Crypto Theft Lawsuit (Cointelegraph)

• Post-Halving Reality: Average Bitcoin Transaction Fee Rises to $4 (Newsbtc)

• South Korea: Central Bank Conducts Research Into Global Adoption of CBDCs (Btcmanager)

Mainstream news

• Dow ends 390 points lower after report cast doubt on Moderna's coronavirus vaccine candidate (Marketwatch)

• Dow futures gain as investors watch for earnings from Target, Lowe's and Fed minutes (Marketwatch)

• Two-thirds of fund managers say stocks are still in a bear market (Marketwatch)

• European markets head for mixed open as positive sentiment falters (CNBC)

• Asia Pacific stocks mixed as China keeps benchmark lending rate unchanged (CNBC)

Sentiment analysis

Crypto investors continue moving the market capitalization higher, on hopes of Bitcoin breaking up the 10K barrier, although there are similar selling pressures. The US mainstream markets dropped yesterday with the Dow Jones Industrial Average easing 1.58% at the end of the session. The Asian session is seen mixed, with the Nikkei up +0.79%, while Hong Kong's Hang Seng Index slipped 0.1%. The Shanghai Composite SHCOMP, retreated 0.57%, and the Shenzhen Composite 399106, is dropping 1.03%. Also, South Korea's Kospi is up +0.45%, and Taiwan's Y9999 moves up by +0.43%, Singapore STI, drops 0.96%, Malaysia FBMKLCI, virtually flat at 0.10%, and Indonesia's JAKIDX, descents -0.23%. Finally, Australia's S&P/ASX 200 XJO, had a modest +0.24% gain.

European stock sessions are expected to be mixed and choppy, as the US market retreated. London's FTSE futures contract is 33 points lower at 5,974, Germany's DAX futures is 57 points lower at 11,036, while France's CAC 40 futures point to a 20 points lower opening, at 4,443, and Italy's FTSE MIB is seen 76 points lower at 16,985.

Technical Analysis

Total Market

Fig 2 - Total Market Daily

The Total market cap outlook did not change much since yesterday. The valuation is making small bodies near the top of the range as it approached the $271.763B level. The price still moves near the +1 sigma line of the Bollinger bands and its regression line ( white dotted line), as the RSI still moves sideways above 60.

Technical Factors

• 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 near the 60 level N

• Price bounce near $271.763B -

Total Market Outlook

The market is making a triangular figure, which shows indecision. The technical factors show an underlying bullish sentiment, so we think this triangle can be resolved to the upside.

Bitcoin

Fig 3 - Bitcoin 4H Chart

Bitcoin is still moving in the vertex of the triangular formation, making higher lows but unable to break above the resistance line. We can see the price still moving near the +1 sigma line and above its regression line (dotted). The RSI also drifts sideways. The technical indicators haven't changed.

Technical Factors

• 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 -

Bitcoin's Outlook

Bitcoin is facing stiff resistance near $9,800, which seems to desperate some buyers, but that would mean, the breakout is near, and it will soon break above this level and challenge the $10K once more. The key levels remain the same.

Pivot Levels

Ethereum

Fig 4 - Ethereum 4H Chart

Ethereum is consolidating the gains made on Monday in a sideways movement that resembles a triangle or pennant. The price moves on the upper channel of the Bollinger bands, and below the linear regression line (dotted), as the RSI retraced and is now near the 60 level. The technical factors do not differ much from yesterday's values.

Technical Factors

• Bollinger bands ascending +

• The price near 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 drifting near 60 N

Ethereum's Outlook

Most of the technical factors indicate a mid-term bullish trend, but the price is consolidating the gains made on Sunday and Monday. We think the asset is ready to break this range, but traders must wait for it to actually break out, since it is not unusual an initial breakdown, shrugging off the weak hands before resuming the trend. The level to watch is $216. The Pivot point and S/R levels remain the same.

Pivot Levels

Ripple

Fig 5 - Ripple 4H Chart

Ripple is also creating a triangular formation, as its price is making higher lows and lower highs. Its price is touching the 1+ sigma line and also the middle of the short-term mid-line of the ascending channel, as the RSI moves sideways. Most of the technical factors are unchanged, as the price action is constrained inside a small range.

Technical Factors

• Linear regression channel has a positive slope +

• Short-term regression channel also with positive slope +

• 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's Outlook

As is happening with highly correlated assets, XRP is moving in a range with its buyers waiting for the market to push the price upwards. The resistance line to break is still 0.20535. The Pivot levels remain as yesterday's.

Pivot Points

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