Crypto Review for May 25 - Bad weekend for cryptos brings Bitcoin below $8,800, what's next?

The weekend did not help cryptocurrencies overcome the selling pressure, as most of them continued weak. Bitcoin (-4.58%) dropped below $8,800, Ethereum (-3.37%) still keeps above $200, and Ripple suffered a flash-crash and recovery, ios moving above $0.192. As we see in the Top 10 image, the best performers, Theta Fuel (+60.29%), THETA (+9.53%), and Blockstack (+9.36%), are ranked below 30 in market cap, and only eight of the top ten cryptos show gains in the last 24 hours. Also, the worst performers Hyperion (-13.04%), Numeraise (-11.06%), and OmisGO (-9.97%) are ranked below the 30-rank.

Fig 1 - 24H Crypto Sector Heat Map

The market capitalization dropped to $241.871 billion, a 3.67% drop in the last 24 hours but just 1.7% for the whole weekend. The volume in the last 24 hours went to $32.9 billion, which is 6 billion less than on Friday. Finally, Bitcoin dominance dropped to 65.87%.

Top 10 Performers

Source (CoinMarketCap)

Bottom 10 Performers

Source (CoinMarketCap)

News Sentiment Analysis

Crypto-related news

• Bitcoin: Africa might become the 'leading crypto continent in the next 5 years' (AMBCrypto)

• Louisiana lawmakers advance bill for licensing crypto businesses (The Block)

• Cryptocurrency data and infrastructure providers have raised $286M in funding since 2014 (The Block)

• Ethereum Address Usage Has Surged Despite Price Slump (Beincrypto)

• U.S. sanctions against China tailwind for Bitcoin's bullish moves (Bitcoinist)

• Donald Trump Could Be About To Lose U.S. Dollar Hegemony To China (Forbes)

• Grayscale Accumulates 34% of New BTC as Weekly Investments Tag $30 Million (Cointelegraph)

• Deposited ETH on Exchanges at Four Years High, 10% Has Gone Long (Trustnodes.com)

• Ethereum Now Holds Four Times More Bitcoin Than The Lightning Network (Trustnodes.com)

• Hacker Sells Tens of Thousands of Ledger, Trezor, and Keepkey Users' Info (Cointelegraph)

Mainstream news

• Asian markets mixed as U.S.-China tensions heat up (Marketwatch)

• China will likely face U.S. sanctions over Hong Kong national security law (CNBC)

• Trump suspends travel from Brazil as coronavirus pandemic worsens in South America (CNBC)

• Congress could kick China listings off U.S. stock exchanges, but it won't happen overnight (Marketwatch)

• Report: Brazil's indigenous people are dying at an alarming rate from Covid-19 (CNN)

• Hertz files for bankruptcy (CNN)

Sentiment analysis

With the confirmed Bitcoin's drop below $9,000, there is a division of opinions on what is going to be the next path for the crypto sector. The stock market is mixed also, as US-China is going to enter into another quarrel by the new security bill China wants to impose on Hong Kong. The crypto market seems currently more active on the sell-side, so be prepared for more drops.

Technical Analysis

Total Market

Fig 2 - Total Market Daily

The Total capitalization chart shows another large bearish candle after two days of consolidation. This action has brought the valuation to the bottom of the ascending channel and below its -1 sigma line of the Bollinger Bands. Finally, the RSI shows a descending path and is now placed near the 50-level.

Technical Factors

• 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 +

• Price near the -1 sigma line -

• RSI down below the 50 level -

• Price at the bottom of the channel -

Total Market Outlook

Although the current candlestick is correcting the previous action, the price below the -1 sigma line is an indication of short-term bearish bias. On the other hand, the price touching the -2 sigma line of the regression channel may indicate the drop has ended, and a new leg up should start soon. Traders should look for direction in shorter timeframes.

Bitcoin

Fig 3 - Bitcoin 4H Chart

Bitcoin continued south after some consolidation and now is seen below the -2 sigma line that defines the bottom of the ascending channel. It is also just below its 200-period SMA, as the RSI is close to oversold levels, and the Bollinger bands show downward bias and the price well below the -1 sigma line of the bands.

Technical Factors

• The slope of the Linear Regression Channel is positive +

• The Bollinger bands point down -

• The price below the -1 sigma line of the Bollinger bands -

• The price is below the edge of the regression channel -

• Price below its 50- and 200-SMA, -

• RSI descending near oversold -

Bitcoin's Outlook

All technical factors agree with the price action: the bears have control of the price. We see that it is currently making a weak recovery, but it is likely a test of the $8,500 level.

Pivot Levels

Ethereum

Fig 4 - Ethereum 4H Chart

Ethereum's price was dragged to the bottom of its ascending channel, and, currently, it is slightly over its 200-period SMA. The Bollinger bands are moving sideways, but the price moves on the lower side.

Technical Factors

• The slope of the linear regression channel is positive +

• RSI descending near 40 makes a hook +

• The price above 200-SMA but not above its 50-SMA -

• Bollinger bands point sideways N

• The price near the -1 sigma line -

Ethereum's Outlook

Ethereum's bearish momentum is minimal, so it seems its future path will depend on what BTC will do. Therefore, we should refrain from taking long positions until we see a change in sentiment. The levels to watch are 208 to the upside and $200 to the downside.

Pivot Levels

Ripple

Fig 5 - Ripple 4H Chart

Ripple made a bearish candle on Sunday followed by a hammer with an extremely large lower wick, which shows a mini-flash crash below the 0.17 level on low volume. Now the price moves below the -1 sigma of the Bollinger bands and also below the lower edge of the ascending channel, as the RSI moves back to near oversold levels.

Technical Factors

• Linear regression channel has a positive slope +

• Price below the -1 sigma of the Bollinger Bands -

• RSI descending, near oversold -

• Price below its 200- and 50-SMA -

• Bollinger bands move slightly downwards -

Ripple's Outlook

Ripple keeps being controlled by the sellers. The only positive note is that it found enough buyers after dropping below $0.17 to move it above $0.19 again. That would establish $0.19 as a strong support. If we look at the price formation after the large drop made on May 10, we can see that XRP is moving in a range between 0.19 and 0.207. Thus, if the bottom of this range is not pierced, we could expect another push to the top of the channel.

Pivot Points

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