BITCOIN / U.S. DOLLAR
Price Analysis
Bitcoin begins the last week of this month with bearish momentum. On Monday, the 25th of May 2020, bulls struggled to push Bitcoin above the $9000 level but could only make a high just below it, at $8960. The price went to a low of $8600 but closed at $8900 level. BTC broke below the line of the uptrend. It's currently trading below both, the basis of Bollinger bands and its 20-day exponential moving average (EMA). The fall below its 20-day EMA line has initiated this bearish momentum. We can see the EMA flattening and slightly sloping down in the daily chart below.
BTC/USD 1-Day chart with BB, MA, and Uptrend line
On the downside, we can see that BTC's price has tested the range of $8500-$8700 a lot of times in the month of May. This acts as a strong support area for Bitcoin. If this support range does not hold strong, we can expect the price to decline downwards below the lower Bollinger band.
Key points to watch out for:
The immediate target for the bulls is to push BTC above its 20-day EMA and the crucial resistance of $9000. If bulls are successful in the same, BTC might struggle in the $9100-$9400 range facing the next strong resistance at $9500 level.
If bears continue to mount themselves strongly at $9000 level, the next immediate support can be seen near the lower Bollinger band around $8500 level. If bulls fail to sustain the same, Bitcoin will decline towards its 50-day moving average (MA) of $8200, facing the next support just below it at $8100 level.
Indicators
The market capitalization of the largest cryptocurrency Bitcoin has reduced to $163.7 Billion with a $31.3 Billion trading volume on Monday. Bitcoin's market dominance also reduced to 65.4% yesterday.
MACD has picked up an increased deceleration with the MACD line diverted much away below the signal line. This indicates the upper hand of bears.
The relative strength index (RSI) fell below 50 and is indicating a bullish divergence at 49.
BTC/USD 1-Day chart with MACD and RSI
ETHEREUM / U.S. DOLLAR
Price Analysis
Ethereum has bounced out of the ascending channel and also fell below its 20-day EMA as the month enters its last week. The price of Ether slightly recovered on Monday, the 25th of May closing above its 20-day exponential moving average (EMA) at $204 just below yesterday's high of $205. ETH made a low of $198 taking the support of the uptrend line. The bulls have defended the uptrend line thrice this month, making it a strong support level as can be seen in the daily chart below.
BTC/USD 1-Day chart with MA, ascending channel, and uptrend-downtrend line
Key points to watch out for:
If bulls are able to sustain above the uptrend line and can push ETH above the psychological resistance of $200, the next resistance will be seen just above the support line of the ascending channel, at $211 level.
If bulls maintain this bullish momentum, the next resistance level will be witnessed at the downtrend line, at $215 level, followed by the upside resistance levels of $220, $226, $238, and then at $245.
If bears take command and push the price of Ether below the uptrend line, it will fall to its 50-day EMA at $190 level, followed by lower support levels of $188, $180, and then at $175.
Indicators
The market capitalization of the second largest cryptocurrency was seen at $22.8 Billion with a $10.4 Billion trading volume on Monday, 25 May 2020. Ethereum's market dominance slightly increased to 9.15%.
MACD seems to have a slightly increased deceleration with the MACD line crossing below the signal line, indicating bears trying to take the upper hand.
The relative strength index (RSI) is sloping upwards correcting itself above 50 level, indicating a bullish divergence at 52.
ETH/USD 1-Day chart with MACD and RSI
