BITCOIN / US DOLLAR
Price Analysis
Tuesday was a positive day for Bitcoin, continuing its parallel move across the x-axis. The upward trend line is hitting on the upper boundary and we expect to move towards this for the next days. Before the recent boom, there were two patterns in late-March and early-April, the Head and Shoulders pattern. This pattern often indicates that the price will move upwards, something that happens over the next month after the patterns appeared. You can see the Head and Shoulders pattern on the red circles below.
In the current period, the prices are moving at a horizontal channel from $ 8,500 to $ 9,200. A horizontal channel is an indicator of sharp moves in the short-term period. The moves could be either upwards or downwards and we have to seek other signals for more trustworthy results.
In the 3 weeks, the positive trending line is at the point of the current while the Bollinger Band Average is moving around $ 8,000, a bearish indicator for the moment. Also, an inverted triangle appeared over the last days, showing that there is resistance on $ 9,000 and it is possible for a downward move in the upcoming days.
Indicators
The indicators for Bitcoin price show that the momentum is on the positive side as the MACD index is moving away from the baseline and had sustained a positive signal for almost a month. The momentum is an important factor for trading on day to day basis but there should be concerns about the duration of the momentum and the change to negative returns at any moment.
On the other side, the RSI index enters the overbought area, showing that we expect a downward move from day to day to move inside the boundaries. Taking into consideration the horizontal channel and the RSI index, we believe that there is a chance for a downward move in the next days.
ETHEREUM / US DOLLAR
Price Analysis
The positive trend line is also continuing in Ethereum price, moving between the channels. The Upper Triangle pattern appeared in abstract forms in early-April and late-April while in the current period, there is a hint for another pattern. The three patterns showing that momentum was built over the last month, making us believe that the trend will not last for much longer. The next days will show if there would a decisive move for the market.
Indicators
The MACD and RSI index is on hold positions are the MACD is near the baseline, without much divergence. Besides, the RSI index is on the upper side of the overbought area but without a clear signal on shorting Ethereum. While the momentum is slightly positive and there is no clear signal for any sharp reaction, we expect stability and calmness over the next days, waiting for an announcement or an event that might spark the price and deliver results on the trading block.
