BITCOIN / U.S. DOLLAR
Price Analysis
After a flaming week, the foremost cryptocurrency Bitcoin (BTC) strikes a significant resistance of $9.5K. BTC manifests a rally of $2K in just a week, its price hiking from $7500 to $9440. Ten days to the halving event, could this be a FOMO or is Bitcoin really firing its engine?!
The momentum of Bitcoin advanced after breaking its 200-day MA (moving average) zone of $7800-$8000 and also riving up through the bullish triangle at $7800, in the 4H chart. BTC maintained its support level at $7600 since this week's beginning.
The yellow line representing 200-day MA
Blue dotted lines representing Bullish Triangle
The upsurge ended at a significant resistance band of $9.2K - $9.5K which acted as support throughout July - September in 2019 and February - March in 2020.
If BTC begins to retrace, $8200 - $8400 zone will act as the immediate support followed by $7800 level and then $6400 - $6600 zone at the lower levels.
We can clearly see a strong rejection from the $9400 - $9500 zone to a straight $1000 drop in price, indicating selling. Observe a major key price point of $8400 serving as notable support due to a small compression between $8400 - $9000 where $9000 is acting as the immediate resistance, forming a new implicit range.
Indicators
To take a bullish move, BTC needs to hold the price of $8600 including tests of $8400 as well. A very clear $9000 breakthrough is required from where it got rejected yesterday. Lower key support levels to eye on falls between $8200 - $8350.
The total market capitalization crossed $220 Billion with resistance levels of $235, $246, and $260 which got rejected from $260 Billion. Bitcoin ranked first on CoinMarketCap, shows a similar pattern with support at $235 and resistance of $246 and $260 Billion, but is currently around $165 Billion.
The Moving Average Convergence Divergence (MACD) histogram shows a super positive bull move above the 0 line.
The Relative Strength Index (RSI) indicates an overbought condition of the cryptocurrency as it's hanging around 75% constantly. BTC can retest and might show some downtrend for the short term, as it had surpassed key levels in a short duration of time.
After a gradual increase in the trading volume, calmer volume levels can be seen since yesterday.
Traders to keep in mind about the last Bitcoin Halving where BTC peaked before the event but eventually crashed once the Halvening was done, moreover like a sell-the-news style correction.
ETHEREUM / U.S. DOLLAR
The launch of Ethereum 2.0 will bestow a fully proficient Proof of Stake platform, triggering a bull run for Ether. Its demand will increase once 30% of Ethereums supply gets locked up. Currently, 4.7 Million Ethers are issued annually on the Ethereum network. According to ETH founder Vitalik Buterin, even if everyone participates, the maximum issuance of ETH will be reduced to only 2 Million a year because of the Proof of Stake protocol.
Price Analysis
Ethereum is swinging in its ascending channel as shown. The bulls found it difficult to sustain above the resistance line since 30th April, ETH still not able to break the resistance.
The second-ranked cryptocurrency on CoinMarketCap is trying its best to breakthrough the ascending channel to successfully suppress the active bears.
ETH/USD is likely to see its resistance levels at $250 and $289 once it breaks $227. An uptrend will renew from its next support of $210 and $200. If not, the price will fall to $186, its 20-day Exponential Moving Average (EMA).
Indicators
The momentum of MACD is decreasing while it is still above the 0 line.
RSI can be seen swinging towards the overbought region, but Ethereum still appears to be bullish with the ascending channel.
