Jun 04

Crypto Review for June 04 – Cryptocurrencies shrug off the recent selloff and head north again

Cryptocurrencies are moving up again today following the sharp selloff it did on Tuesday evening. The head of the institutional sales at brokerage Koine, Rupert Douglas, thinks this move was intended as “a shakeout of the weak longs.”
Bitcoin is currently trading at $9,646, 1.33% up, but on low volume. Ethereum (+2.56%) behaves more upbeat, reaching $242. Among the top ten leading currencies, Cardano (+12.07%) is the best performer today, followed by ATOM ( +8.76%), MIOTA( +8.08%), and Monero (+7.64%). In the Ethereum-based sector, HEDGE surges 22.15%, leading the gains among the top capitalized projects, followed by THETA (+13.92%), BAT( +7.94%) and CRO (+5.95%).

Fig 1 – 24H Crypto Sector Heat Map

The sector’s market cap is now $269.630 billion, an increment of 1.78%, as the traded volume has shrunk in the last 24 hours by 43.74%, to $27.094 billion. The Dominance of Bitcoin also dropped to 65.06%.

Top 10 24-hour Performers

Source coinmarketcap.com

Bottom 10 24-Hour  Performers

Source coinmarketcap.com


News Sentiment Analysis


Crypto-related news

  • Coinbase Accused of Deliberately Going Offline Abruptly Whenever Bitcoin Skyrockets (ZyCrypto)
  • Federal Reserve Endorses Ethereum-Backed Alternative To Libor (Forbes)
  • SEC ‘Crypto Mom’ Hester Peirce Tapped for Second Term at US Regulator (Coindesk)
  • Marathon Installs 700 New Bitcoin Mining Rigs as Competition Heats Up (BeInCrypto)
  • Latest Bitcoin Core Code Release Protects Against Nation-State Attacks (Coindesk)
  • Digital Checks Feature Could Give XRP Ledger Even More Utility (Cryptobriefing)
  • Bitcoin locked in DeFi hikes to touch new all-time high (AMBCrypto)
  • Crypto scams are alive and well; CipherTrace reveals $1.4 billion in crypto stolen in 2020 (Cryptoslate)
  • Walmart China Subsidiary Teams Up With VeChain to Trace Food Products (Cointelegraph)
  • Crypto exchange Coincheck says it suffered a data breach, which may have exposed some users’ personal information (The Block)

Mainstream news

  • New York hospitals prepare for a potential second wave of the coronavirus (Marketwatch)
  • Jobless claims: 1.84 million Americans expected to have filed for unemployment benefits (Yahoo Finance)
  • European markets head for lower open amid U.S. protests and economic uncertainty (CNBC)
  • Trump administration to bar Chinese passenger carriers from flying to the U.S. (Yahoo Finance)
  • Europe’s stock-market rally is leaving the U.S. behind as ECB and governments step up, analysts say (Marketwatch)
  • ECB set to scale up stimulus as new data could indicate a need to do more (CNBC)
  • Dow futures edge back as investors await jobless claims report, ECB decision (Marketwatch)
  • Asian markets mixed as Wall Street’s rally continues (Marketwatch)

  Sentiment analysis

Most of the Asian-Pacific stock indices are up or break-even, as Wall Street closed another positive session, with the Dow-30 gaining over 2% and the S&P 500 benchmark climbing 1.5%.

The Nikkei 225 NIK, is modestly up by +0.36%, while Sydney’s S&P/ASX 200 advanced +0.84%. The Shanghai Composite Index SHCOMP is mostly flat (-0.07%) with Hong Kong’s Hang Seng HSI, also flat (-0.07%) among U.S.-Chinese tensions and Beijing’s Security bill to tighten its control over Hong Kong. In Seoul, The Kospi 180721 rose a modest 0.12%, as Jakarta’s JAKIDX went +0.85% up, and New Zealand’s NZ50GR climbed +0.94%.

In Europe, markets are expected to open lower amid U.S. chaotic leadership and economic uncertainty.
London’s FTSE is expected to open 33 points lower at 6,381, Germany’s DAX futures point to a 64 points lower opening at 12,405, and France’s CAC 40 27.5 points lower at 4,990.4, according to IG data.

On the Crypto front, altcoins and other currencies are taking the lead. The market is slightly up on shallow volume, as investors’ confidence was shattered by Tuesday’s sharp selloff, which some investors see as outright manipulation. As Bitcoin’s price jump above $10k is seen as dangerous, investors are focusing on other attractive digital assets.


Technical Analysis


Total Market

Fig 2 – Total Market Daily

The Total Market valuation did a modest bullish candlestick on Wednesday, closing neat the $271.763B resistance line. We still see the market action moving above the +1 sigma line of the Bollinger bands, which is bullish, as the RSI moves sideways.

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 +
  • Bollinger bands move slightly up +
  • Below $271.763B resistance level –
  • RSI sideways below 60 N
Total Market Outlook

There is a slight upward bias in the crypto market, which may translate into suitable individual performances of some interesting assets. The best strategy is to focus on the best performers and ride the wave.


Bitcoin

Fig 3 – Bitcoin 4H Chart

Bitcoin has managed to move up on low volume and currently touched the mid-Bollinger line, as both it 50- and 200-period SMA move below the price with a positive slope. The Bollinger bands move almost horizontally as the RSI recovers slightly.

Technical  Factors
  • The slope of the Linear Regression Channel  is positive +
  • Price above its  50- and 200-SMA and touches its 20-SMA +
  • Price action still above the Pivot level +
  • The prices moving in the lower side of the Bollinger bands –
  • Bollinger Bands expanding but now sideways N-
  • Price below $9,750 resistance –
  • RSI recovery is weak –
  • Low traded volume  –
Bitcoin’s Outlook

The overall market is bullish, but buyers are afraid to invest in Bitcoin at these levels. The thinly traded volume does not give much confidence currently. We still think the market will continue sideways until BTC breaks the $9,750 resistance again. The critical levels are $9,750 to the upside and $9,300 to the downside. The pivot and key levels are mostly unchanged.

Pivot Levels
SupportPivotResistance
8,7959,2719,925
8,14010,400
7,66511,056

Ethereum

Fig 4 – Ethereum 4H Chart

Ethereum continues its bullishness and has recovered most of the losses made during Tuesday’s selloff. The price moves near the +1 sigma line as the Bollinger bands turn up again. We also see a good upward slope in its 50-SMA.

Technical  Factors
  • The slope of the linear regression channel is positive +
  • The price above its 200-, and  50-SMA +
  • The slopes of the 20- 50- and 200-SMA are positive
  • Price continues its upward trend in the upper side of the Linear Regression channel  +
  • Bollinger turning up +
  • Prices moving above its pivot level +
Ethereum’s Outlook

Ethereum’s trend is up, although currently, there is no clear entry setup, as the price is near the $250 resistance level. Above that level, though, traders have clear entries to ride the wave towards the recent top of $289 made in February.

Pivot Levels
SupportPivotResistance
203225253
175276
152304

Ripple

Fig 5 – Ripple 4H Chart

Ripple moved slightly upward, but it found rejection at 0.20676, although it is still above its 50- and 200-period SMA. The price is currently near the mid-Bollinger line, which in this case, is a confirmation of sideways action.

Technical  Factors
  • Linear regression channel has a positive slope +
  • Price above its 50- and 200-period SMA +
  • Prices still above Pivot level +
  • Bollinger bands moving sideways N
  • RSI  slightly up near 50 +
Ripple’s Outlook

Ripple’s outlook is similar to what we already said on Wednesday. The asset is starting to show signs of recovery. A break above its closest resistance of 0.20676 can boost its price and test the $0.215 recent top. On the other hand, the level of 0.2 seems a good support and should not be broken. The pivot and key levels are unchanged.

Pivot Points
SupportPivotResistance
0.180.19710.219
0.1580.236
0.1420.2575