BITCOIN / U.S. DOLLAR
Price Analysis
Bitcoin's price has been rejected again after the bulls pushed it above the $10K psychological resistance yesterday. The same thing happened in February this year, after which Bitcoin fell drastically to a $4000 low. But the price kept moving in an uptrend since then and gained an increasing momentum since May 2020. Yesterday was the 5th time that the price got rejected from $10K - $10.5K resistance range since the month of May. But the continuous upsloping of both moving averages, 20-day EMA, and 50-day MA is a strong positive sign. Also, bulls are continuously buying the dips and not letting BTC fall below its 20-day exponential moving average (EMA), as seen in the daily chart below. Bitcoin made a high of $10,012 and closed at $9898 on Wednesday, 10th June 2020.
The price is trending along with the upsloping 20-day EMA.
Key points to watch out for:
If bulls successfully sustain the increasing momentum, we can expect BTC to retest $10,500 before rallying to higher levels.
If bears try to win the battle and push BTC below its 20-day EMA at $9570 level, the basis (middle line) of Bollinger Bands will be tested at $9520, followed by the symmetrical triangle support at $9100 and 50-day MA at $9000.
Indicators
The market capitalization of the largest cryptocurrency has reached $181.6 Billion with a trading volume of $25.7 Billion on Wednesday. Bitcoin's market dominance was 64.7% yesterday.
The moving average convergence divergence (MACD) has a decreased deceleration with the MACD line overlapping the signal line. This indicates that the bulls still have the upper hand.
The relative strength index (RSI) has sloped up to 57.9 indicating some bullish divergence.
ETHEREUM / U.S. DOLLAR
Price Analysis
Ethereum gained a similar momentum like Bitcoin yesterday. The price of Ether stood at its immediate resistance of $250 high on Wednesday, 10th June 2020. The bulls failed to push the price above $250 but did not let ETH fall below $241 and closed the day's candle at $248 level. The battle between the bulls and bears seem to grow stronger, with bulls commanding the market. Ethereum is trading well within the ascending channel. Both the moving averages, 20-day exponential moving average (EMA), and 50-day moving average (MA) are sloping upwards with increasing momentum. The traders and investors are looking forward to higher levels as bulls make their way through the positive market sentiment.
Key points to watch out for:
If bulls successfully sustain this increasing momentum, the next resistance will be seen at $253, followed by ETH testing $266 before rallying towards $278.
If bears take control, first the support line of the ascending channel will be tested at $237 level. If ETH falls out of the ascending channel, it will test its 20-day EMA at $232, followed by the basis of Bollinger Bands at $229.
Further below, Ether might test its upper trend line at $218 level before declining towards its 50-day MA of $212.
Indicators
The market capitalization of the second largest cryptocurrency remains to be around $27.5 Billion with not much change in the trading volume of $8.7 Billion on Wednesday. Ethereum's market dominance was 9.8% yesterday.
MACD has slightly decreased its acceleration with the MACD line almost nearing the signal line but still above it, indicating bulls are still positive.
RSI also shows positive bullish divergence by sloping up at 63.
