Crypto Review for May 26 - Bitcoin bounces as CME Futures expiration nears

The expiration of Bitcoin's futures contracts for May will occur this Friday, and volatility is usually high in the vicinity of the event, as many investors "roll-over the current month's contract by the next one. That means there is a lot of sales in the expiring contract, and purchases in the next month's contract.
Cryptocurrencies are bouncing off from yesterday's lows, and most cryptos advance an average of 1.65% over yesterday's positions. One of the best performers among the top 50 cryptocurrencies continues to be THETA (+17.51%) along with Enjin Coin(+18.5%), and Hedera Hasgraph (+17.67%).
The Ethereum-token sector is led by VEST( +68.45%), followed by ENJ(+18.75%) and THETA, but many tokens show better results than currencies, such as ZRX(+11.8%), ZIL(+14%), CENNZ (+12.95%) and many others.

Fig 1 - 24H Crypto Sector Heat Map

The total market cap advanced 1.68% and now is $246.165 billion, as the volume dropped 5%, to $28.384 billion. The dominance of Bitcoin improved slightly to 66.12%.

Top 10 Performers

Source (CoinMarketCap)

Bottom 10 Performers

Source (CoinMarketCap)

News Sentiment Analysis

Crypto-related news

• Indian Crypto Exchange CoinDCX Raises $2.5M From Polychain Capital, Coinbase Ventures (Coindesk)

• Bitcoin, Gold, are not rising because of major market manipulation (Bitcoinist)

• Number of Countries Seeking IMF Bailout Nears 100 (BeinCrypto)

• Louisiana Might Soon Offers a License to Bring Crypto Business Back (Cointelegraph)

• New Bill Wants to Eradicate Crypto Activity in Russia (NULLTX)

• Telegram Quits Court Fight With SEC Over TON Blockchain Project (Coindesk)

• Swiss Government Supports Blockchain Startups Offering Over $10 Million USD (Coininsider)

• Visa Approves New DeFi-Enabled Crypto Card in EU and UK (Cointelegraph)

Mainstream news

• Stock-market traders brace for 'dogfight' as S&P 500 lingers below its 200-day moving average (Marketwatch)

• Dow futures surge 400 points on hopes of a coronavirus vaccine (CNBC)

• As stark 100,000 deaths landmark looms, Trump pursues his political obsessions (CNN)

• Airbnb hosts are planning to sell off their properties because of the pandemic (CNN)

• Asian shares climb as investors focus on global recovery hopes (Marketwatch)

• European markets head for a higher open on global vaccine hopes (Marketwatch)

• Stock Futures Advance; Oil Jumps, Dollar Dips: Markets Wrap (Yahoo Finance)

Sentiment analysis

Stock investors in Asia lifted the indices over 2 percent, as Japan has resumed its near-to-normal activities, hoping a soon recovery. Europe's bourses also seem to open higher driven by the strong Asian stock market and by the announcement of the beginning of a coronavirus vaccine trial on humans by Novavax. Will this optimism move to the crypto market? As we have seen, many altcoins and tokens are increasing strength, although the sector may be influenced by bitcoin and the soon-to-be May's future expiration.

Technical Analysis

Total Market

Fig 2 - Total Market Daily

The price of the Total Market Cap made a harami on Monday, which is the weakest of all reversal patterns. Thus, it will need confirmation. The action takes place near the -1 sigma line of the Bollinger bands and touching the -2 sigma line of the regression channel. The RSI still shows weakness and is in the middle of the range.

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 descending at the 50 level -

• Price at the bottom of the channel -

Total Market Outlook

There is currently some selling pressure, but the bearish momentum is weak. Also, the price is touching the -2 sigma line of the regression channel, meaning that only 5 percent of the time this happens. That means the current price is well below the consensus price ( the centerline), which is currently $267-5 billion. Thus, we estimate a slightly upward action may arise as the market optimism brings more buyers.

Bitcoin

Fig 3 - Bitcoin 4H Chart

Bitcoin has been retracing its price after the last large candlestick, but this move can be thought of as a reaction to oversold levels, as we can see on the chart's RSI levels. The price is currently supported by the -2 sigma line of the regression channel in confluence with its 200-period SMA. The volume is thinning as investors expect a clue for direction.

Technical Factors

• The slope of the Linear Regression Channel is positive +

• RSI recovering and above 40 +

• The Bollinger bands point down -

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

• The price is touching the lower edge of the regression channel -

• Price below its 50-SMA -

Bitcoin's Outlook

Bitcoin's price is in a critical state. The volume is very thin, and the volatility has shrunk to its maximum. Buyers must wait for a break above its last high ($8,960) Sellers should wait for a drop below the last bullish candle ($8,770).

Pivot Levels

Ethereum

Fig 4 - Ethereum 4H Chart

Ethereum is moving inside a triangular formation. The last retracement of the bearish candlestick has found resistance at the edge of this triangle and is currently heading down. Its price moves below the -1 sigma line of the Bollinger bands and piercing through its 200-period SMA. The RSI is curving down.

Technical Factors

• The slope of the linear regression channel is positive +

• RSI makes a downward hook -

• The price below its 200- and 50-SMA -

• Bollinger bands turning down -

• The price below the -1 sigma line -

Ethereum's Outlook

Ethereum is currently showing selling pressure. The last candlestick has pierced below its 200-SMA, but it is still moving inside the triangular formation and above the bottom of the ascending channel. Sellers must wait for a break below $200 to confirm the entry. Buyers must wait for a break above $206.

Pivot Levels

Ripple

Fig 5 - Ripple 4H Chart

After Monday's corrective movement, XRP's price was rejected twice at the 0.19711 level. Now it is suffering selling pressure, the action below its -1 sigma line of the Bollinger bands and below the -2sigma edge of the ascending channel. The Bollinger bands continue moving down, and the RSI made a downward hook in the middle of the range.

Technical Factors

• Linear regression channel has a positive slope +

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

• RSI made a downward hook -

• Price below its 200- and 50-SMA -

• Bollinger bands move downwards -

Ripple's Outlook

XRP's current action shows weakness, but it is moving near support levels. Also, it touches the lower edge of the regression channel, which means it is too underpriced against the consensus value of the mean line. Thus, buyers must be alert for a reversal action to the upside. The level to observe is $0.197. Also, sellers may bet for a re-visit of the 0.19 level, a short-term move that may happen under the asset's current weakness.

Pivot Points

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