Jun 02

Crypto Review for June 02 – Bitcoin soars past 10K for the first time since Feb 18. Analysts expect more upsides

In the last hour of Monday’s session, Bitcoin (+5.8%) broke $9,750 and then $10,000, closing at $10,226, for the first time since February 19. All its altcoins and cryptocurrencies followed this move. Bitcoin Cash moved to $261.38 in a 7.8% move. Also, bullish was seen Litecoin (+5.51%), reaching $48.75. Similarly remarkable were Monero (+7.1%), Tron (+5.23%), NEO (+7.23%) and VeChain (+14.9%). In the Ethereum-based token sector, HEDG( +35.38%), NEXO (+22.42%), and LRC (+18.27%) were by far the best performers, but numerous projects had a great session driven by Bitcoin’s bullishness.

Fig 1 – 24H Crypto Sector Heat Map

The market cap is now $278.854 billion, +7.09% higher than 24 hours before; the traded volume in the last 24 hours was $42.850 billion, +36.47% higher than on the previous 24-hour cycle. Finally, Bitcoin dominance moves slightly up, to 65.81% from the previous value of 65.53%.

Top 10 24-hour Performers

Source coinmarketcap.com

Bottom 10 24-Hour  Performers

Source coinmarketcap.com


News Sentiment Analysis


Crypto-related news

  • ‘Financial Surveillance’ or ‘Blockchain Analysis’? Human Rights Foundation Debates Elliptic (Coindesk)
  • JPM Subsidiary Chase Bank Will Refund Crypto Users $2.5 Million (OkCoin)
  • Western Union makes takeover offer to MoneyGram (The Block)
  • Internet Archive faces legal complaint from major publishers (The Block)
  • Bitcoin Erupts Past $10,000 After Consolidation: $90 Million Liquidated on BitMEX (NewsBTC)
  • Bitcoin’s S2F model one step closer to Gold’s (AMBCrypto)
  • Elwood Global becomes largest blockchain ETF with $95.4 million in total assets (The Block)
  • Chinese Chip Maker With a Hand in Crypto Mining Plans $2.8B IPO (Coindesk)
  • Brave browser adds 1.5 million monthly active users in April and May (The Block)
  • Ripple’s ODL in Australia records new ATH (AMBCrypto)

Mainstream news

  • Dow futures retreat as Trump threatens to use troops to end fresh civil unrest (Marketwatch)
  • Asian markets mostly rise, following Wall Street’s lead (Marketwatch)
  • Trump threatens to deploy military as George Floyd protests continue to shake the U.S. (CNBC)
  • Moody’s cuts India’s rating to lowest investment grade with negative outlook (CNBC)
  • U.S. companies issue shares at the fastest rate ever, selling the rally (Yahoo Finance)
  • Asia stocks make cautious gains as China worries slow recovery rally (Yahoo Finance)
  • European markets head for higher open against the backdrop of U.S. unrest (CNBC)

  Sentiment analysis

Bitcoin’s break above $10K is the confirmation of a new upward leg in the crypto market, as the stock markets around the globe continue upbeat, shrugging off the recent civil unrests in the USA, the U.S.- China trade war and the recent coronavirus outbreaks.
The Asia-Pacific markets are all in the green with Nikkei 225 up 1.19%, Hand Hong Kong’s Hang Seng gaining 0.62%. South Korea’s Kospi moves up 1.08%, as Australia’s S&P/ASX 200 is mostly unchanged (+0.27%), similarly to the Shanghai Composite SHCOMP (0.09%). Jakarta’s main index JAKIDX is the best performer today with a 2.61% jump, and Singapore’s STI is also quite bullish with a 1.68% advance.


Technical Analysis


Total Market

Fig 2 – Total Market Daily

The Total Market Cap shows a large bullish candlestick that broke above the last high of 271.763 and went up to be rejected at the 287.882 level. With this move, the price went beyond its +1 sigma line, and the RSI continued its progress up above the 60 level. The action now went to above the mean regression line of the channel. The current candle seems to create a consolidation to the previous one.

Technical  Factors
  • Linear regression channel points up +
  • Prices above the +1 sigma side of the Bollinger Bands +
  • Prices above its 20- 50-  and 200-day SMA +
  • 50-SMA above the 200-SMA +
  • RSI up above the 60 level +
  • Bollinger bands move upwards and expand +
  • Rejected at $287.88 resistance level –
Total Market Outlook

The technical factors and price action shows a bullish trend. The short-term outlook is of consolidation, as the current levels are slightly overbought.


Bitcoin

Fig 3 – Bitcoin 4H Chart

Bitcoin made a sharp move up in the last hour of yesterday’s session, breaking the $9750 resistance level and passing through $10,000 as if there was no resistance. Then, the price was rejected at the $10,400 level. The current action is of consolidation of the previous move. That is quite normal after a 6 percent move in less than one hour. In the chart, we can see that the price is overextended, well above the +1 sigma line, and the sizeable bullish candle possibly touched the +3 sigma, which is definitively overbought. We also see the RSI reaching the 80 level, and now receding. The price action

Technical  Factors
  • The slope of the Linear Regression Channel  is positive +
  • Prices move now in the upper side of the channel +
  • Price above its 20-,  50- and 200-SMA  +
  • Bollinger Bands expanding and its mean line heading up +
  • The price well above the +1 sigma Bollinger line +
  • Price above psychological 10K level +
  • RSI strong, although near overbought N
Bitcoin’s Outlook

Having broken the $10K level is very positive for bulls if it is held above it for the coming day. The next hours will be a fight of buyers against profit takers and sellers. If buyers succeed in keeping the 10K level, the continuation of the trend is granted. The level to watch to the upside is $10,250. The next target to break is $10490.

Pivot Levels
SupportPivotResistance
8,8009,2759,930
8,14010,400
7,67011,050

Ethereum

Fig 4 – Ethereum 4H Chart

Etherum followed Bitcoin’s lead and advanced to over $250. The price moves now above the +1 sigma line, and the RSI is making a hook above 60. The chart shows that $250 is the last top made before March’s 10 market meltdown; thus, it can be considered a significant level. We observe, also, that the action is approaching the +2 sigma edge of the ascending linear regression channel.

Technical  Factors
  • The slope of the linear regression channel is positive +
  • The price  made a new higher high +
  • The price above its 200-,  50-, and 20-SMA +
  • Bollinger bands upwards  +
  • The price above  the + 1 sigma line of the Bollinger Bands +
Ethereum’s Outlook

Ethereum is making a strong consolidation after the bullish candle. The current upward momentum of the market makes us think that the $250 level will be broken soon. That can be the signal to add longs with a price objective of $278, the minor top made on February 24

Pivot Levels
SupportPivotResistance
203225254
175276
152304

Ripple

Fig 5 – Ripple 4H Chart

Ripple also followed Bitcoin’s lead and made a bullish candle, but the price was stopped near the last top of 0.21350. Now it is creating a consolidation near the top of the previous candle, moving above the +1 sigma line. The Bollinger bands point upwards, and the RSI made a hook up near the 50 level, which is positive for the asset. Another useful detail is that now the price moves above its 200-period SMA, and the 50-period SMA seems to be creating a crossover with the 200-SMA soon.

Technical  Factors
  • Linear regression channel has a positive slope +
  • The price above the +1 sigma line of the Bollinger bands +
  • Price above its 50- and 200-period SMA +
  • Bollinger bands heading up +
  • RSI  hooking up +
Ripple’s Outlook

Ripple’s upward momentum is growing. Also, it is still a bit undervalued compared to its historical regression value. Thus, we think that Ripple, following the current bullishness of the market, will continue its upward path towards $0.22 and $0.2265.

Pivot Points
SupportPivotResistance
0.180.19710.219
0.1580.236
0.1420.2575