May 28

Crypto Review for May 28 – Bitcoin reversal movement brings hopes for further advances

Bitcoin (+3.2%) broke the recent range on Wednesday morning in a bullish movement that brought the asset to touch the $9,200 level. The action also pushed other altcoins up. Litecoin (+2.12%) and Bitcoin S.V. (+2.07) were also seen up, as Ethereum (+1.66%) went as high as $209. Overall, the movement was not extreme, except for Bitpay (+43.6%), DNA (+18.16%, and Hedera Hashgraph (+9.61%).
On the Ethereum-based token sector, we must remark the movement by Enjin Coin( +16.5%) and HEDG (+8.25%) to the long side, as THETA retraced 25.44%, and VEST tumbled 50.3%.

Fig 1 – 24H Crypto Sector Heat Map

The total market cap is currently $251.127 billion, a 2.79% increment from yesterday’s value. The traded volume moved up to $28.449 (+5.47%), and Bitcoin dominance moved up to 66.56% from yesterday’s 65.95%.

Top 10 Performers

Source (CoinMarketCap)

Bottom 10 Performers

Source (CoinMarketCap)


News Sentiment Analysis


Crypto-related news

  • Plaintiffs in Craig Wright case present new evidence that he fabricated his list of Bitcoin addresses and blocks (The Block)
  • South Korean Electronics Giant L.G. Joins Hedera Hashgraph Council (Coindesk)
  • Goldman Sachs: Cryptocurrencies ‘Are Not an Asset Class’ (Coindesk)
  • Grayscale is Now Buying 1.5 Times the Amount of Bitcoin Being Mined (Cointelegraph)
  • Cryptocurrencies make a solid comeback in India despite a hostile environment (Quarz India)
  • Revolut App Reports 68% Increase in Retail Crypto Traders (Cointelegraph)
  • China’s Digital Currency Could Emerge Sooner Rather Than Later (Beincrypto)
  • Ethereum 2.0’s delays fail to hinder positive outlook (AMBCrypto)
  • Coinbase shakes up the crypto prime broker race with its acquisition of Tagomi (The Block)
  • Russia’s Biggest Bank is Buying 5000 Blockchain ATMs That Can Mine Crypto (Cointelegraph)

Mainstream news

  • Dow closes 550 points higher, as investors look past dismal economic data and escalating U.S.-China tensions (Marketwatch)
  • E.U. plans to raise $825 billion for coronavirus relief. Hard-hit countries need help soon (CNN)
  • Stock futures roughly flat after S&P 500’s highest close since early March (Yahoo Finance)
  • Oil drops as surprise U.S. stock build douse demand recovery hopes (Yahoo Finance)
  • European markets head for higher open as U.S.-China dispute continues (CNBC)
  • Asian markets mixed as tensions flare in Hong Kong (Marketwatch)

  Sentiment analysis

The sentiment in the stock markets is one of moderate optimism. While there are signs that the fight against COVID-19 is yielding results, the renewed tensions between the U.S. and China, as well as the new security law that China tries to impose on Hong Kong, are creating uncertainties in the markets. In the crypto markets, the momentum of Bitcoin toward $9200 has attracted buyers, although now the bullish movement has slowed, and a pause has been established. It remains to be seen if the buying strength will generate more upside movement in bitcoin and the rest of digital coins.


Technical Analysis


Total Market

Fig 2 – Total Market Daily

The total market movement made yesterday a bullish candlestick that broke the triangle and closed above the opening of the bearish candle made three days ago. Currently, the price moved to the upper channel of the Bollinger bands as the RSI turned slightly 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 moved above the upper side of the Bollinger Bands +
  • The current movement engulfed the previous large bearish candle +
  • RSI turning up +
  • Price bounced at the bottom of the regression channel +
  • Rejected by $253.162B resistance level –
Total Market Outlook

Almost all technical factors signal a bullish bias, the exception being the rejection from the $253.162B level. The current action can be qualified as consolidation, but the breakout of that resistance level should happen soon, or this upward progress could become a fake move.


Bitcoin

Fig 3 – Bitcoin 4H Chart

Bitcoin created a large bullish candlestick that carried the asset to the range it had on May 24. The impulse was stopped at about $9,300 and spent the rest of the time in a sideways range. The price action is currently shifted to the upper edge of the Bollinger bands, which is seen turning up. Also, the price is now above its 50-period SMA. Also, the RSI went up and is now near 60.

Technical  Factors
  • The slope of the Linear Regression Channel  is positive +
  • RSI up and near 60 +
  • The Bollinger bands turning upwards +
  • The price near the +1 sigma line of the Bollinger bands +
  • The price bounced strongly from the lower edge of the regression channel, breaking the descending trendline +
  • Price above its 50- and 200-SMA  +
Bitcoin’s Outlook

After yesterday’s movement, most of the technical factors have reversed its sign and are now positive. We think the odds of a continuation of the upward action are high. A break above $9,300 would push BTC price towards the next resistance level of $9,750. The pivot levels are kept unchanged.

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

Ethereum

Fig 4 – Ethereum 4H Chart

Ethereum broke the triangular formation to the upside in a movement that went to the range previous to the drop made on May 24, although the progression stopped at $209. With this movement, the price is now moving above the +1 sigma line and above its 50- and 200 SMA. The RSI had a steady progression to the 60 level. The current action is sideways, supported by its 50-SMA.

Technical  Factors
  • The slope of the linear regression channel is positive +
  • RSI  makes an upward hook +
  • The price recovered completely from the drop that started on May 24 +
  • The price above its 200- and 50-SMA +
  • Bollinger bands slightly upwards +
  • The price above  the + 1 sigma line of the Bollinger Bands +
Ethereum’s Outlook

All the technical indicators turned bullish, thus we think Etherum’s movement to the upside has not ended, although it will need to break the $208 resistance level. The next potential resistance points are $216 and $220. The Pivot levels remain unchanged, too.

Pivot Levels
SupportPivotResistance
188203214
177228
163240

Ripple

Fig 5 – Ripple 4H Chart

Ripple made a good bullish candle that broke the descending trendline, but the progression was rejected at $0.20, and now it has retraced a good portion of yesterday’s gains. The price is now below its +1 sigma line but still on the upper side of the Bollinger bands. The RSI is seen retracing its movement and is now located near the 50 level.

Technical  Factors
  • Linear regression channel has a positive slope +
  • The price still on the upper side of the Bollinger bands +
  • RSI made a downward hook –
  • Price below its 200- and 50-SMA –
  • Bollinger bands move sideways N
Ripple’s Outlook

Ripple is still behaving weakly, with sellers fading any good rally. That said, the price is still above the descending trendline, and the sizeable bullish candle made yesterday has not been fully retraced. Thus, we prefer to keep in the sidelines on this asset. Short-term traders may follow what has been profitable on this one: Fade the rallies.  The pivot levels are unchanged from yesterday.

Pivot Points
SupportPivotResistance
0.18480.19640.204
0.1770.2156
0.1660.2232