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Weekly Cryptocurrencies technical outlook - May 6

The bullish breakthrough, which we’ve been talking about during several weeks in a row, had finally happened. The crypto market woke up from hovering around technical support ranges last Friday and continued the bullish expansion. The vast majority of cryptocurrencies gained strength, prices went up, the trading volume and market cap edged higher. Bitcoin price was leading the gains, growing by 10% in the last seven days, while the nearest follower was Bitcoin Cash, charting almost the same gains. It’s worth noticing that Bitcoin’s market cap exceeded $100 Billion for the first time since the crypto rush in the second half of 2017. Litecoin and Ethereum obtained the second and the third place in the price gain, strengthening by 8.32% and 6.74% respectively. EOS, Binance Coin and Ripple printed moderate but sustainable gains around 5% in a week. All figures are green, and the technical sentiment is entirely bullish on several timeframes. The only thing we left with is just to asses how far North the crypto market might go this upcoming week. 

BTC/USD: Bullish.

Bitcoin had finally breached the resistance of $5655, that we showed on many charts earlier. Moreover, BTC/USD soared above $6000 for the first time since the plunge on November 14, according to Bitfinex. The nearest technical resistance is the upper band of the sideways consolidation range, which used to hold prices in August - November 2018. Once the bulls were able to lift Bitcoin price above the level of $6779.4, crypto investors will eye the next target which is the highest daily close price charted on September 4 during the bullish retracement ($7358.9). A conservative approach suggests that the price has to come back to the breached resistance in the range of $5700/6000, however, given the speed of the bullish rally, that might not even happen. Therefore, the buy-and-hold trading strategy is still in play, especially in the long run. Intraday speculators might consider the buy-dips plan, monitoring 4-hours chart in the scope of support levels and pivot points. 

ETH/USD: Bullish.

Although Ethereum’s achievements were much more moderate as per Bitcoin’s surge, the upwards momentum is still strong. ETH/USD tested the horizontal static resistance of $180 for the third time since April 8, bouncing off the local support level around $150. The fast RSI oscillator with 13-days period is well above 50%, pointing to the strong bullish momentum. ADX and DI indicator shows the uptrend continuation as -DI and +DI lines crossed each other. The fact that the main ADX line is still below the threshold indicates that the bulls should not expect too wild price action in the nearest future. However, the ascending uptrend channel is still in play. The only condition for Ethereum to accelerate the rally is to break through $200 psychological resistance as there’s just an open space above it, from the technical point of view. 

LTC/USD: Bullish.

Litecoin had finally ended the bearish retracement and renewed the uptrend. Several technical signs were getting the background ready for that surge. First, the plunge was limited by the bottom band of the Ichimoku span on April 29, signalling the bullish reversal. Second, LTC/USD went off the span on May 3, confirming the bullish breakthrough pattern. Third, the Ichimoku’s Conversion Line resistance curve was breached as well. Fourth, and probably the main, the cloud remained bullish as there were not bearish crossover on the daily timeframe. Litecoin price must close a day above the local top of the market ($92.94) to chart the sequence of higher highs and proceed the uptrend. Once that’s done, the psychological round-figure resistance of $100 would not be able to limit the bullish rally on the long-term perspective. Those traders who missed the brilliant opportunity to enter the market last week should consider buying Litecoins right by the current price, especially after the coin retraced to $80 support.

EOS/USD: Bullish.

Although EOS has a bit of lagging performance recently, the coin has even more potential to grow compared to other major cryptocurrencies as the coin remains in the lower range of the ascending channel, and the yellow sideways range supports the price action. All the bulls need to continue the expansion is to lift EOS/USD above the resistance line of $5.50, which represents the middle line of the range, dividing the market by half. Once that’s reached, further development might be on the table including targets of $6.50 and $7.00 in extension.

Weekly Cryptocurrencies technical outlook - May 6.


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