BITCOIN / U.S. DOLLAR
Price Analysis
Wednesday, the 3rd of June 2020 sabotaged Bitcoin's price recovery above the psychological $10K resistance level when the bulls were unable to push the price above $9690. This has happened for the third time since October 2019 that Bitcoin's price has been rejected from the crucial $10,500 resistance level. This price rejection has previously lead to a trend reversal, but this time it doesn't seem so. Bulls did not let BTC fall below $9400 and closed the day's candle at $9670, which is a positive sign. The price exactly tested the basis (middle line) of Bollinger Bands where the bulls bought the dip, as shown in the daily chart below.
Bitcoin is consolidating in the range of $9400 - $9600 while the traders and investors envisage higher levels in the upcoming days.
Key points to watch out for:
If bulls successfully sustain BTC's price above its 20-day exponential moving average (EMA), we can expect the price to reach the resistance line of the symmetrical triangle at $9800 level. If it breaks out above the symmetrical triangle, the immediate resistance will be $10,000 before testing $10,500 again.
If bears push BTC below its 20-day EMA, $9300 - $9100 will be the immediate support range before the price dips down to the support line of the symmetrical triangle at $8900 level. If BTC falls out below the symmetrical triangle, the price will decline to its 50-day moving average (MA) at $8700 level.
Indicators
The market capitalization of the largest cryptocurrency was seen to be $177.6 Billion with a decrease in trading volume to $25 Billion on Wednesday. Bitcoin's market dominance was 64.9% yesterday.
MACD's acceleration has slowed down with the MACD line touching above the signal line, indicating bulls still have the upper hand. The relative strength index (RSI) has corrected itself sloping upwards at 55 level.
ETHEREUM / U.S. DOLLAR
Price Analysis
Ethereum has recovered its bullish momentum on Wednesday, the 3rd of June 2020, and is trending along the upper Bollinger Band. The bulls did not let Ether's price fall below $233, which is a positive recovery from Tuesday's low. The bulls struggled to push ETH above $250 but could only make a high of $245 yesterday. The bulls successfully bought the dips and the day's candle closed at $244.8. As the Ether bulls successfully defended the breakout level of inverse head & shoulder pattern, traders and investors anticipate an uptrend to be resumed again. In the daily chart below, we can see that Ethereum remains much within the ascending channel.
Key points to watch out for:
If bulls sustain the rising momentum and successfully push ETH's price above $253, we can expect the next target to be $266, followed by a rally to $278.
If bears takeover and push ETH below $227, the support line of the ascending channel will be tested at $224, followed by next support to its 20-day EMA at $220 level.
If the price falls below its 20-day EMA, the basis (middle line) of Bollinger Bands will be tested at $215, followed by the uptrend line support at $210. If ETH falls below the uptrend line, we can expect a decline to its 50-day moving average (MA) at $202 level.
Indicators
The market capitalization of the second-largest cryptocurrency was seen at $27 Billion with a decrease in trading volume to $9.8 Billion on Wednesday. Ethereum's market dominance was 9.8% yesterday.
MACD has maintained its increasing acceleration with the MACD line much above the signal line, indicating a good bullish divergence. This shows that bulls are in command.
The relative strength index (RSI) is sloping upwards at 63.6 level indicating bulls have the upper hand.
