BITCOIN / U.S. DOLLAR
Price Analysis
Bitcoin, the first-ranked cryptocurrency by CoinMarketCap, is swinging between $8800 and $9900 past three days. Bitcoin bulls are struggling to cross the stiff $10,000 resistance level. On Friday, 15th May 2020, BTC ascended to a high of $9848 and consolidated around $9300. The price dips are being bought by these bulls indicating positive momentum.
We can see BTC finding support at $9300 level and forming a lower high. If bulls try to break this level and pull the price down, it will test the 20-day exponential moving average (EMA) along with the basis (middle line) of Bollinger bands i.e., $8800-$8900. Further below BTC's price might test the line of the uptrend, around $8500.
To witness a positive breakout, the price of Bitcoin should maintain its ascending momentum and consolidate between $9300 - $10,000 in the upcoming days.
Key points to watch out for:
Traders to watch out for the crucial support level of $9300. If bears take over and the price falls below $9300, the next support will be seen at $8850, and then around $8500.
If bears still pull the price down, BTC will test its further lower support at its 50-day moving average (MA) around $7700.
If bulls manage to break the stiff resistance of $10,000, BTC will shoot up to test $10,600, followed by $11,500 resistance levels.
Indicators
The market capitalization of Bitcoin remains around $171 Billion with a reduced trading volume of $48 Billion on Friday.
MACD is still decelerating above 0 and has overlapped the signal line, trying to cross above it, indicating BTC bulls trying to maintain the bullish trend.
However, the relative strength index (RSI) displays a little weakness indicating traders to watch out for its bearish divergence. On Friday, RSI was seen at 58 level. Let's see if bulls win the battle and RSI corrects above 60.
ETHEREUM / U.S. DOLLAR
Price Analysis
Ethereum, the second-ranked cryptocurrency by CoinMarketCap, finally crossed above its key resistance of $200. On Friday, 15th May 2020, ETH made a high of $204 but fell to a low of $191. The price of Ether closed just below $195 resistance, at $194 level. As the Bitcoin upsurge triggered this bullish momentum, Ethereum bulls are trying to push its price above the basis (middle line) of the Bollinger bands. ETH seems to take the support of its 20-day exponential moving average (EMA).
Key Points to watch out for:
If the bulls can break above the immediate resistance between $195-$200 again, ETH will rally towards $220, followed by $227 - $230 resistance levels.
If bears mount themselves at $200, pulling the price of ETH below the downtrend line at $190 level, the next support will be seen at Ether's 50-day moving average (MA) at $176 lower level.
Indicators
The market capitalization of Ethereum can be seen at $21.7 Billion with a trading volume of $16.6 Billion on Friday.
MACD is decelerating below the signal line, but bulls still remain in demand. The relative strength index (RSI) is showing bearish momentum and stands at 50 level. RSI should correct itself if bulls maintain their upswing.
