Jun 08

Crypto Review for June 08 – Cryptocurrencies bounce back after weekend’s bearish drift

Cryptocurrencies are moving above the levels made on Friday, following a Sunday in which prices were continuously dropping, following Bitcoin’s sharp bounce from its 200-hour SMA. Bitcoin(+0.88%) is currently moving back above $9750 level, Ethereum( +0.72%) moves near $244, and Ripple (-0.16%) is holding above its $0.20 level. The best performer among the top 20 capitalized cryptos is Tron ( +5.03%). In the Ethereum-based token sector, BNT(+31.98%), VEST (+36.35%), and MKR (+15.42%) are the best performers, as HEDG (-5.01%) is still retracing its large gains of the previous week.

Fig 1 – 24H Crypto Sector Heat Map

The total market capitalization is currently $272.172 billion, 0.73% up. The traded volume in the last 24 hours was $27.981 billion, which shows a 35% increase over Sunday’s amount. Bitcoins’ dominance remains stable at 65.28%.

Top 10 24-hour Performers

 

Source coinmarketcap.com

Bottom 10 24-Hour  Performers

Source coinmarketcap.com


News Sentiment Analysis


Crypto-related news

  • Bloomberg Report Predicts Bitcoin (BTC) at $20K by Year-End (Sludgefeed)
  • Stablecoins’ rising demand to attract increased regulation (AMBCrypto)
  • FATF Meeting Scheduled to Discuss VASPs Compliance With Travel Rule (Cointelegraph)
  • Investors Turn Bullish as Bitcoin Exchange Reserves Drop to 1-Year Low (Cointelegraph)
  • Why Nasdaq Setting A New All-Time Could Be The Boost Bitcoin Needs (Newsbtc)
  • Ransomware Attack Exposes 1.5TB of Stolen Aerospace Data (Cointelegraph)
  • Cryptojacking Attempts Sees Massive Surge In 2020 (Coininsider)
  • Chinese Communist Party’s new blockchain book casts Libra as a threat to its currency system (The Block)

Mainstream news

  • German industrial production dropped a record 17.9% in April (Marketwatch)
  • Dow futures rise as stock market aims to add to rally headed into Fed week (Marketwatch)
  • European markets head for mixed open. The focus remains on pandemic and protests (CNBC)
  • OPEC, Russia to extend record oil cuts to end of July (Yahoo Finance)
  • Asia stocks mostly rise as U.S. jobs data bounces unexpectedly; oil prices up after OPEC+ output cut extension (CNBC)
  • Oil prices extend gains on OPEC+ cuts, record China imports (Reuters)

  Sentiment analysis

The stock market sentiment is quite positive, after the surprising U.S. jobs report, OPEC+ oil cut extension announced on Saturday. The Asian-Pacific markets are mostly up.
Japan’s Nikkei 225 is up +1.37%, as Hong Kong’s Hang Seng Index HSI, +0.05%, is mostly flat for the session. The Shanghai Composite SHCOMP, rose 0.27% and the smaller-cap Shenzhen Composite is flat at 0.07%. South Korea’s Kospi is also flat with a loss of -0.08%, and Taiwan’s Y9999, rose 1.14%. Singapore’s STI is also up by 1.23%, and Indonesia’s JAKIDX, lead the gains in the Pacific markets with a +2.55% gain. Markets in Australia are closed for a holiday.

European markets are expected to open lower, as U.K.’s FTSE 100 futures are 45.3 points lower, at 6,443, German’s DAX 30 futures are 96 points lower, at 12.756, France’s CAC 40 futures contract is 30 points low, at 5,162, Italian FTSE MIB futures show 125 point drop, at 20,190. Finally, the Spanish IBEX 35 futures contract shows a decline of 75 points at 7,811.

The crypto market seems encouraged by the recent spike up, but it is currently rangebound. We should watch Bitcoin’s levels as this asset is currently the key to the crypto market direction.


Technical Analysis


Total Market

Fig 2 – Total Market Daily

The Total market made a spinning top on Sunday, with a large lower wick that shows buyers are buying the dips. Currently, it continues moving following the +1 sigma line a, as the RSI moves horizontally.

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 +
  • RSI sideways N
Total Market Outlook

Although the underlying trend is bullish, as evidenced by the technical factors, short-term, the market is still moving without direction. Thus, traders should rely on the individual condition of the assets to make trading decisions.


Bitcoin

Fig 3 – Bitcoin 4H Chart

Bitcoin moves sideways after the sharp spike made on Sunday afternoon. The big picture shows Bitcoin creating an ascending triangle that started on May 07. The ascending triangle is making higher lows, and the upper edge is, not surprisingly, the 10,000 level. After Bart Simson’s pattern created last week, the price is drifting sideways.

Technical  Factors
  • The slope of the Linear Regression Channel  is positive +
  • Price above its 20-, 50- and 200-SMA +
  • Price action at the Pivot level N
  • Bollinger Bands horizontal N
  • RSI hook up +
  • Prices move on the lower half of the regression channel –
  • Low traded volume  –
Bitcoin’s Outlook

Bitcoin’s technical factors show a bullish trend, although, as said, short-term, the price is moving sideways on low volume. This critical state can be solved by a sharp move up above $10K or a drop below $9,300. The levels to watch are $9,800 to the upside and $9,400 to the downside.

Pivot Levels
SupportPivotResistance
9,1309,75010380
8,50011,000
7,88011,625

Ethereum

Fig 4 – Ethereum 4H Chart

Ethereum is creating a consolidation at the top of the trading range after a sharp bounce made on Sunday. The price is held by the regression line (dotted) and moves currently above the +1 sigma line of the Bollinger bands. We also see the RSI making a hook to the upside.

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

Ethereum’s outlook is bullish. Currently moves slightly sideways as the overall market is held by Bitcoin’s inability to step up. Still, Ethereum is below three resistance levels, 247, 250, and 253; thus, the reward/risk factor of a trade is inadequate.

Pivot Levels
SupportPivotResistance
228240257
212270
200285

Ripple

Fig 5 – Ripple 4H Chart

Ripple continues moving sideways in a tight range after a recovery below $0.20 made on Sunday. The price moves in the middle of the wholly shrunk Bollinger bands as the RSI drifts sideways in the middle of the range.

Technical  Factors
  • Linear regression channel has a positive slope +
  • Prices below Pivot level –
  • Bollinger bands  shrunk and moving sideways N
  • RSI  sideways near 50 N
Ripple’s Outlook

Ripple’s volatility is minimal; thus, it is untradeable at the moment.

Pivot Points
SupportPivotResistance
0.19470.20460.2135
0.18630.223
0.17640.2315