May 21

Crypto Review for May 21 – Bitcoin’s $500 dip drags the Crypto sector and prolong its sideways consolidation

Bitcoin (-2.53%) dropped over $500 on Wednesday, after several attempts to move beyond $9,800, dragging the whole sector with it. Ethereum (-1.55%) went back below $110 and Ripple(-1.52%) found support above $0.20. The best performers were THETA( +28.5%), Unibright( +10.74%) and Hypercash (+5.89%).
On the Ethereum-based token sector, the top projects are mostly positive, with the already mentioned Theta leading the gains, with LEO(+2.67%), HEDG(+2.47%) and LINK(+1.18%) following it. If we look for the mid-capitalized, WAX(+15.62%), UBT(+20.98%), and ENJ (+5.65%) are the best movers.

Fig 1 – 24H Crypto Sector Heat Map

The total market cap went to $257.87 billion (-2.82%), the traded volume of the last 24 hours dropped to $36.55 billion (-9.5%), and Bitcoin dominance descended slightly to 67.07%.

Top 10 Performers

Source (CoinMarketCap)

Bottom 10 Performers

Source (CoinMarketCap)


News Sentiment Analysis


Crypto-related news

  • IBM Takes 7% Stake in Trade-Finance Blockchain Network We.Trade (Coindesk)
  • Are XRP Payments the Next Revenue Stream for WordPress Site Owners? (Nulltx)
  • US Lawmaker Proposes Legislative Groundwork for National Blockchain Strategy (Coindesk)
  • European Central Bank caught up with DLT; will it be used for CBDCs? (AMBCrypto)
  • Why is Cambodia eager to launch its own DLT-based digital currency? (The Block)
  • Nvidia Faces a Lawsuit Over its Crypto Mining Revenue (Nulltx)
  • Bitcoin-Backed Ethereum Token Forced to Shut Down Over Shoddy Code (Beincrypto)
  • Researchers in Philippines Track Crypto Use By Terrorists (Cointelegraph)
  • Overstock Airdrops 4.37m Security Tokens to Shareholders (Cointelegraph)
  • Someone just moved a block of bitcoins first mined in February 2009 (The Block)

Mainstream news

  • Dow futures head lower ahead of final flourish of earnings for the week, jobless claims and a fresh dose of Powell (Marketwatch)
  •  Asian markets little changed as Japan reports plunge in exports (Marketwatch)
  • Global coronavirus cases surpass 5 million, Johns Hopkins data shows (CNBC)
  • European markets head for lower open ahead of euro zone data (CNBC)
  • World Bank: Pandemic could force 60 million more people to live on less than $2 a day (CNN)
  • Senate passes bill on oversight of Chinese companies, Alibaba shares move lower (CNBC)

  Sentiment analysis

The cryptocurrency sector is experiencing the fight between those who think $10K is the ceiling of Bitcoin valuation and those who don’t. The result is a sideways action and a choppy market. This situation could last further. Currently, traders sell the rally and buy the dip.

On the mainstream finance, THe US stock exchanges went up on Wednesday, with the Dow ending 369 points higher (1.52%), the benchmark S&P 500 up 1.66%, and the tech-heavy Nasdaq up 20.7%. Early Morning Asian markets are slightly down, as Japan reported the worst plunge on its exports in a decade.  Japan’s Nikkei NIK inched down 0.20%, followed by Hong Kong’s Hang Seng Index HSI, -0.58%. The Shanghai Composite SHCOMP also descends 0.58% while the Shenzhen Composite slides 1.01%. South Korea’s Kospi gains +0.60%. Also, Taiwan’s Y9999 is up +0.92%, Singapore STI is flat (-0.03%, and Malaysia’s FBMKLCI, rose 0.92%. Australia’s S&P/ASX 200 XJO, also followed the descending path (-0.40%).

The European Index futures point for a lower opening ahead of Eurozone’s Flash Purchasing Managers’ Index (PMI) figures, which might reveal the extent of the inactivity of the region due to the restrictions imposed in the last two months. London’s FTSE futures are 31 points lower at 6,038, Germany’s DAX futures is 87 points lower at 11,157, France’s CAC 40 is expected to open 36 points lower at 4,461, and Italy’s FTSE MIB futures is 160 points lower at 17,045.

 


Technical Analysis


Total Market

 

Fig 2 – Total Market Daily

The total market cap created a bearish engulfing candle on Wednesday, although with a large lower wick. The price settled above $253.16, which may act as support. The price moved below the +1 sigma line, as the RSI went below 60.

Technical  Factors
  • Bollinger bands slope is positive +
  • Price below the +1 sigma line  but still in the upper side of the Bollinger Bands N
  • 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 +
  • RSI drifts below the 60 level –
  • Price created an engulfing candle –
Total Market Outlook

The engulfing candle and the weakening of the RSI shows a possible short-teem retracement of the market, with a possible target at the bottom of the ascending channel.


Bitcoin

Fig 3 – Bitcoin 4H Chart

The large bearish candle made on Wednesday moved BTC price below the -1 sigma line and the 50-period SMA. Then the price has bounced off slightly but keeps moving below these indicators. The price also went below the regression line (dotted), and the RSI moved down below the 50 level.

Technical  Factors
  • The slope of the Linear Regression Channel  is positive +
  • The Bollinger bands point down –
  • The price is moving in the lower half of the regression channel –
  • Price below its 50-SMA, -1 sigma and the regression line  –
  • RSI descending below the 50 level –
Bitcoin’s Outlook

Although the primary trend is still bullish, the short-term technical indicators show a shift in the trend. We have to observe if the $9,400 level holds. If it does, this move will just be a sideways correction, but if it does not, it may trigger more selling pressure and a test of $9,240 and $9,000. The pivot levels remain the same.

Pivot Levels
SupportPivotResistance
86009,27010,335
7,53411,000
6,86012,080

Ethereum

Fig 4 – Ethereum 4H Chart

Ethereum’s retracement drove its price to its $208 support, which marks the lower side of the range it is making in the last days. The price went below the -1 sigma line as the RSI descends to the middle of its range. The chart shows that the price stills is above its 50- and 200 SMA.

Technical  Factors
  • The price above its 50- and 200-SMA +
  • The slope of the linear regression channel is positive +
  • Bollinger  bands flat  N
  • The price below the -1 sigma line –
  • A large bearish candle on strong volume –
  • RSI  descending near 50 –
Ethereum’s Outlook

As with the case of Bitcoin, Ethereum is now touching its $208 support. If it holds, it may start another move to the top of its range ($215). If it breaks, ETH may visit the $200 level. The pivot levels are unchanged.

Pivot Levels
SupportPivotResistance
185197.5219
163232
150254

Ripple

Fig 5 – Ripple 4H Chart

Ripple made a large candle that brought it to the bottom of the short-term channel in which it is moving. After the subsequent bounce, it is weakening again, moving below the -1 sigma line and the RSI descending. The price now is below both the 200- and the 50-SMA.

Technical  Factors
  • Linear regression channel has a positive slope +
  • Short-term regression channel also with positive slope +
  • Price below its 200- and 50-SMA –
  • Bollinger bands move sideways N
  • RSI  descends below the middle of the range –
Ripple’s Outlook

Ripple’s action is weak, but the selling momentum is still not too high. We think it will move down to test the $0.197 level again. If the level holds, it will continue a sideways movement. If it breaks, it may continue south to visit the $0.19. The pivot levels remain the same as in the previous days.

Pivot Points
SupportPivotResistance
0.18840.1970.2105
0.17530.2195
0.16620.2326