BITCOIN / U.S. DOLLAR
Bitcoin, the world's largest cryptocurrency, has been a beneficial asset to investors and traders and has performed pretty well even during this COVID-19 pandemic. As lockdown limitations are being lifted by economies, we can expect more bullish sentiment in the market with an increased liquidity flow in cryptocurrencies.
Price Analysis
Bitcoin remains in the uptrend still swinging between $9300 - $9900 range. On Monday, 18th May 2020, BTC hiked to a high of $9944 and made a low of $9450 before consolidating around $9700 level. Bulls are struggling to break the $10,000 psychological resistance but were successful in breaking the previous resistance of $9500. If bears continue to strongly mount themselves at the $10,000 level, the price of Bitcoin can expect a dip to the Basis (middle line) of Bollinger Bands and then to the 20-day exponential moving average (EMA).
Key points to watch out for:
If bulls maintain the upside momentum and are able to break the immediate resistance of $10,000, a rally to $10,600 resistance level can be seen.
If bears don't give up the $10,000 level, BTC will drop to the $9200 - $9300 support, followed by $9000.
If bulls fail to buy these dips, BTC's price might sink to its 50-day moving average (MA) of around $7700 - $7900 support range.
Indicators
The market capitalization of Bitcoin rose to $178.7 Billion with a trading volume of $41.8 Billion on Monday, 18th May. Both the moving averages, 20-day EMA, and 50-day MA are sloping up in the daily chart.
The deceleration of moving average convergence divergence (MACD) is slowing down to nil and the MACD line has overlapped the signal line, indicating a bullish trend to be seen. The relative strength index (RSI) is above the 60 level, at 62 indicating bulls are in command.
ETHEREUM / U.S. DOLLAR
Price Analysis
Ethereum, the second-largest cryptocurrency, is developing an upward price momentum as it broke its crucial $200 resistance level again. The price of Ether crossed above the downtrend line on Sunday, 17th May, and continues to trade much above it on Monday, 18th May 2020. ETH reached its expected resistance and made a high of $217 on Monday. The bears seem to uphold the middle line of the ascending channel.
Ethereum faces heavy resistance between the $215 - $230 range. If bulls can successfully break above the middle line of the ascending channel, $217 level, traders can expect ETH's price to rally towards the resistance line of the ascending channel, at $245 level. The channel breakout will lead ETH to hike to the $288 level.
Key points to watch out for:
If bulls maintain this upward price momentum, the immediate resistance will be seen at $220, followed by a $227 resistance level.
If bears take over, ETH will test its 20-day EMA at $199, followed by the support line of ascending channel at $189-$191 support level.
Further below, if bears take command, ETH will drop below its 50-day MA, to $176 level. Strong support can be seen between the $168 - $175 range.
Indicators
The market capitalization of Ethereum can be seen around $23.8 Billion with a $17 Billion trading volume on Monday, 18th May.
MACD witnesses a slowed down deceleration with the MACD line trying to cross above the signal line, indication bulls have the upper hand. The relative strength index (RSI) at 60 also shows a bullish trend.
