May 27

Crypto Review for May 27 – Bitcoin and leading cryptos without direction

Cryptocurrencies are moving slightly up this morning, although losing value compared to 24 hours earlier. Bitcoin (-0.63%) moves somewhat below $9,900, while Ethereum (-0.92%) continues moving in the $202 range after recovering from a plunge below $200 it suffered on Tuesday afternoon, while Ripple (+0.2%) continues moving near the yesterday’s values. Among the Ethereum-based tokens, VEST (+21.34%) and MATIC (+20.68%) lead the gains, and UBT (-7.92%), ENJ (-5.96%), and OMG (-6%) the loses.
Among the projects with capitalization over 150 million, HEX (12.63%), a token described as a Certificate of Deposit and launched in December 2019, is the best performer in the last 245 hours, followed by 0x (+4.06%) and Metaverse Dual (+4.04%). TAGZ5 (-13.7%), TNC Coin (-6.46%) and OmiseGO (-6.46%) show the worst performance.

Fig 1 – 24H Crypto Sector Heat Map

The total market cap is currently $245.140 billion, at a rate of 0.49% less than yesterday’s value, and the traded volume in the last 24 hours continues to decrease. At $25.602 billion, the traded volume dropped by 14.63%. Finally, Bitcoin dominance descended slightly below 66%, to 65.95%.

Top 10 Performers

Source (CoinMarketCap)

Bottom 10 Performers

Source (CoinMarketCap)


News Sentiment Analysis


Crypto-related news

  • Massive Bitcoin Futures and Options Will Expire Friday (BeInCrypto)
  • Bitfury announces institutional investor program for mining farms (The Block)
  • IMF Official: CBDigital currencies to open the door to greater innovation in retail payments (Coindesk)
  • Ripple’s Partner MoneyGram Teams Up with Ride-Hailing Giant Uber (U Today)
  • Long Bitcoin if U.S. bond yields fall, top analyst asserts (Bitcoinist)
  • EMusic Launches Token to Help Artists Earn More (Cointelegraph)
  • India’s Central Bank Denies Prohibiting Financial Institutions from Servicing Cryptocurrency Exchanges (BeInCrypto)
  • Ethereum-based Transactions for Tether Reach a new High (Nulltx)
  • $1 billion burnt by Bitcoin network every year for proof-of-work! (AMBCrypto)
  • Calibra, Facebook’s digital wallet subsidiary, has rebranded as Novi (The Block)

Mainstream news

  • The Dow Rose 530 Points Because a Coronavirus Vaccine Could Cure the Economy (Barron’s)
  • With over 35 million people filing for unemployment since March, $1,200 stimulus checks are only a Band-Aid for Americans (Marketwatch)
  • European markets head for positive open, but U.S.-China tensions weigh on sentiment (CNBC)
  • Asian markets mixed as tensions flare in Hong Kong (Marketwatch)
  • Oil finishes higher with supply cuts and pickup in demand lifting U.S. prices by more than 3% (Marketwatch)
  • Stock market news live updates: Stock futures little changed after S&P 500 closes at the highest level since early March (Yahoo Finance)

  Sentiment analysis

The coronavirus vaccines’ announcements and the reopening of the economic activities are pushing the stock markets to Early March levels and drive crude oil prices above $30. However, cryptocurrencies still seem to be digesting the significant gains made during the recovery from the lows made in March. The traded volume continue descending. Thus, we expect a choppy session, unless a large volatility surge pushes the digital currencies out of the doldrums.


Technical Analysis


Total Market

Fig 2 – Total Market Daily

The Total Market Cap movement made yesterday a small body that closed at the high of range of the previous bullish candle. The market action is making a triangular formation with higher lows and lower highs, a classical consolidation formation. The RSI is also flat in the middle of the range as the volume has dried up.

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 above the 200-SMA +
  • Price near the -1 sigma line –
  • RSI flat at the 50 level N
  • Price at the bottom of the regression channel  -+
Total Market Outlook

The short term bias is slightly negative, but the price in the lower edge of the ascending channel mean prices are cheap compared to fair value prices represented by the linear regression line (white dotted line). On the other hand, futures and options expirations will happen next Friday, and that event may create choppy market conditions. Thus, caution is due for the rest of the week.


Bitcoin

Fig 3 – Bitcoin 4H Chart

Bitcoin is moving sideways following the drop made on May 24. The 4H chart shows that yesterday tried to break below the recent lows, but it found buyers before that level, possibly creating a double bottom. On the other hand, we see the price still moving in the lower side of the descending Bollinger bands and just touching the lower edge of the ascending linear regression channel, and below its 200-period SMA. We see the RSI slightly improving, even when the price is not.

Technical  Factors
  • The slope of the Linear Regression Channel  is positive +
  • RSI improving 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- and 200-SMA   –
Bitcoin’s Outlook

There is no current direction. The short-term bias is still bearish, but volume and momentum are lacking. We think today’s action may be characterized by the bears fading the rallies and the bulls buying the dips.

Pivot Levels
SupportPivotResistance
82859,1159,540
7,86010,368
7,02510,795

Ethereum

Fig 4 – Ethereum 4H Chart

Ethereum continues moving inside the triangular formation after a failed attempt to break it to the downside. The price is near the mid-line of the Bollinger bands, which move just slightly downwards. It is also just under the 200-period SMA, as the RSI made another hook and is in the middle of the range.

Technical  Factors
  • The slope of the linear regression channel is positive +
  • RSI  makes an upward hook +
  • The price recovered completely from the last bearish candle +
  • The price below its 200- and 50-SMA –
  • Bollinger bands slightly downwards –
  • The price near the mean line of the Bollinger Bands n
Ethereum’s Outlook

Ethereum is gaining strength. The fact that it has recovered from the sharp drop below $200 made on Tuesday indicates buying interest. We think Bitcoin’s slight bearishness drags the asset. The last three bottoms also show that $196 is an excellent support. Thus, if the market recovers slightly, this one will move fast to the upside. Pivot levels remain unchanged.

Pivot Levels
SupportPivotResistance
188203214
177228
163240

Ripple

Fig 5 – Ripple 4H Chart

Ripple has been making a bottoming area above the lower edge of the ascending regression channel. The day started with near 1 percent surge that approaches its price to the $0.197 recent top. The price is trying to cross to the upper side of the Bollinger bands, as the RSI hooks up.

Technical  Factors
  • Linear regression channel has a positive slope +
  • RSI made an upward hook +
  • Lower edge line (blue) acting as support +
  • Price below its 200- and 50-SMA –
  • Bollinger bands move downwards –
Ripple’s Outlook

XRP’s price moves under its 50-SMA and below its last top of $0.197. Therefore, even though the last action is positive, it may have a limited progression, as the 50-period SMA is just slightly above that level. Thus the reward/risk factor is lousy. That said, if the market improves, buying at these levels with a target at $0.2067 will bring a better reward ratio, betting for a leg to touch the upper side of the range. Pivot levels remain unchanged.

Pivot Points
SupportPivotResistance
0.18480.19640.204
0.1770.2156
0.1660.2232