BITCOIN / U.S. DOLLAR
Price Analysis
Friday welcomed Bitcoin breaking its massive resistance with its price rising to $10,035. With just three days for miners' block rewards halving, Bitcoin has gone above the barrier of $10,000 four times in the hourly chart, twice in the first half of 8th May 2020 and twice in the day's second half. This shows the impact of bulls trying their best to push Bitcoin above the $10,000 level.
With the active number of BTC addresses surpassing 1 Million the day before for the first time after June 2019, we can expect Bitcoin's price to witness a parabolic run. Because the last time this happened in 2017, Bitcoin had leapt to $13,000. According to the famous hedge fund manager Paul Tudor Jones, Bitcoin is the fastest horse and his bet on BTC would entice other investors and managers who aren't interested in the centralized system of money.
Bears are trying hard to defend the $10,000 level but fail to sink BTC below its previous key resistance of $9500, which is now acting as support. Bulls are preparing BTC to target the $11,500 resistance.
Key Points to watch out for:
For BTC to ascend above the resistance line of the symmetrical triangle ($10,500 level), bulls need to sustain BTC's price above $9450.
If BTC begins to turn down below $9500, the immediate support will be seen at $9300 level followed by $9000.
Indicators
We can see in the above 1-day chart that both moving averages, 20-day EMA, and 50-day MA are sloping up.
The market capitalization of Bitcoin is $180 Billion with a $51.7 Billion trading volume on 8th May 2020.
In the daily chart below, the relative strength index (RSI) is correcting itself below 80, still in the overbought region with demanding bulls. The moving average convergence divergence (MACD) is accelerating with volume above the signal line.
This $10,000 above rally is acting as a booster to the market sentiments, but on the contrary, we need to acknowledge BTC's price pullback with stiff resistance at intermediate levels. To be on the safer side, we advise you all to take smaller steps before a giant leap.
ETHEREUM / U.S. DOLLAR
Price Analysis
We can see that the Ethereum bulls are commanding with a lot of buying at support levels. The price of Ether made a high of $217 with a close at $211 on 8 May 2020. The daily chart below depicts that Ether broke above its downtrend line as well.
Ether is also trading above the middle line of the ascending channel which is now acting as support. Traders and investors will be able to see ETH ascending to the resistance line of the ascending channel if bulls succour above the downtrend line.
The second-largest cryptocurrency seems to have upward momentum and is trying to break above the ascending channel. As long as ETH's price swings in the upper half of the ascending channel, bulls have a high possibility to reach the $250 resistance.
A break below the $197 (20-day EMA) level will awaken the bears to push ETH to the $185 level.
Key points to watch out for:
ETH should break out above $215 level to reach the major resistance of $220.
A fall below its low on 8 May 2020 of $206 will bring ETH to its immediate support of $200, followed by the $187-$189 range.
Indicators
Ethereum witnesses a slope up of both the 20-day EMA and 50-day MA, with the 50-day moving average (blue), almost touching the support line of the ascending channel trying to enter inside, seen in the daily chart above.
On 8 May 2020, ETH's market capitalization was $23.6 Billion with a $20.4 Billion trading volume. Its price is trading above the 20-day exponential moving average (EMA), showing positive signals.
MACD line has overlapped the signal line indicating a price movement. The RSI pushing itself above 60 levels indicates a strong bull rally.
