BITCOIN / U.S. DOLLAR
Price Analysis
Bitcoin's incessant attempt to breakout above the psychological $10K resistance seem to fail, bringing its price down to $8800 level on Thursday. The price recovered to a higher low of $8950 on 22 May 2020, making a high of $9270 and closing at $9160 level on Friday. The basis (middle) line of Bollinger bands acted as resistance at yesterday's high, as can be seen in the daily chart below. BTC's price fell below its 20-day exponential moving average (EMA) but recuperated back to close above it.
We can also see in the above chart, that the uptrend line defended Bitcoin's price from the bears who tried to push BTC below it, acting as support. The short term traders booked their profits due to Bitcoin's lows in the past two days, but the bulls successfully bought the dips.
Key points to watch out for:
If bulls are efficiently able to sustain the price of Bitcoin above its 20-day EMA at $9100 level, BTC will face its immediate strong resistance at the basis of Bollinger bands at $9300 level.
A buying opportunity will be seen once BTC consolidates above $9300 level.
Otherwise, if bulls take over, and BTC breaks below the uptrend line support at $8800, we can expect the price of Bitcoin to fall down to its 50-day moving average (MA) at $8100 level.
If the 50-day MA support stays strong, Bitcoin will witness its price to be bounded in the range between $8100 - $10,000 in the upcoming days. But if BTC falls below $8100, a negative downtrend can be expected.
Indicators
The market capitalization of the largest cryptocurrency was seen to be $168.8 Billion with a lower trading volume of $29.8 Billion on Friday, 22nd May. The market dominance of BTC was at 66% yesterday.
MACD indicates bearish divergence as the deceleration increases with the MACD line crossing and sloping below the signal line. The relative strength index (RSI) seem to correct upwards at 53 level indicating that bulls still have an upper hand.
ETHEREUM / U.S. DOLLAR
Price Analysis
Ethereum shows a bullish nature as it trades within the ascending channel. Ethereum bulls did not let its price fall below the support line of the ascending channel making a high of $209 on Friday, 22nd May. Ether's price made a low of $196 but retrieved back above the downtrend line closing at $207. ETH continues to trade above its 20-day exponential moving average (EMA) in spite of bears pushing the price below it, as seen in the daily chart below.
We can see also see in the above chart, that the support line of the ascending channel is acting as a strong support level as the bulls have bought these dips thrice in the past days.
Key points to watch out for:
To witness a rally towards $220-$227 range, Ethereum needs to break above the middle line of the ascending channel at a $215 resistance level.
If bulls fail to sustain the strong ascending channel support line at $196, followed by $190 level support, we will see ETH fall down to its 50-day moving average (MA) at $187.
If bears still take over, Ethereum will decline to $175 level.
Indicators
The market capitalization of the second-largest cryptocurrency was at $23 Billion with a lower $12 Billion trading volume on Friday, 22nd May. ETH's market dominance was seen at 8.9% yesterday.
The moving average convergence divergence (MACD) reduces its deceleration with the MACD line trying to cross above the signal line, indicating bullish signals.
RSI also indicates a bullish divergence by sloping up at 54 level.
