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    Weekly Cryptocurrencies technical outlook - May 27

    After three-days correction, the crypto market had found the bottom, bounced off the support levels and continued the bullish rally, reprinting local highs. Crypto investors like weekends to lift the price of major cryptocurrencies as the latest analysis shows, especially on daily charts. Litecoin and Binance Coin were leading the gains, overperforming other Altcoins, and keeping the double-digit growth in the last seven days. Bitcoin added another 8.5% to its price, breaking one more technical resistance level and testing psychological mark of $9000 early Monday. Total crypto market capitalisation is continuously growing; this week’s figure exceeded $268 billion, $153 billion of which is the Bitcoin’s share of the overall pie. When it comes to underperformers, Ripple and Tether should be highlighted as both Altcoins gained only 1.50% and 0.69% respectively. The rest of the cryptocurrencies were strengthening steadily. Etherium added 5.5% to its price, Bitcoin Cash climbed 7.2%, EOS surged 9.32%. The price action is volatile, and market conditions are changing rapidly. However, the general impression is that crypto investors are in the mood to chart new bullish achievements this upcoming week.

    BTC/USD: Bullish

    Bitcoin price bounced off the weekly high last Monday, tested technical support levels and continued soaring this past weekend. The horizontal static target we showed last week has been achieved, and the resistance at $8221 has been breached. Early Monday’s action was corrective as BTC/USD tested the level of $9000, while take-profit orders were triggered and the quote bounced to $8764. Technical indicators point to the bullish continuation but the pace of growth might slow down a bit as ADX mainline edged down, showing that trend’s momentum is getting exhausted. -DI and +DI lines, however, kept the positive surplus, even though the range was slightly narrowed. Williams %R oscillator was reloaded last week and entered the overbought territory on Sunday, but the indicator is far from extreme values, leaving the room for the bulls to move further north. Strong resistance and weekly targets were shifted towards the peak charted on May 5 2018. Therefore, crypto investors could massively take profits of around $9862 mark this week. The level of $10000 looks to solid to break with the first attempt, and the healthy deep retracement is likely before the price gets there. We’d set take-profits orders slightly below the price mark mentioned above as trading platforms could have a delay when executing orders during high volatility periods.
     

    Weekly Cryptocurrencies technical outlook - May 27_3

    ETH/USD: Bullish

    The ascending channel we built last week works well, holding Ethereum price from overload. The bottom of the yellow range was achieved as the nearest target, and the bulls eye the top of the range at $317.72 now. Looking at the angle of the ascending formation, we’d suggest that such a high target would not be breached that fast and ETH/USD could require a couple of weeks to get there, especially in the light of short trading week in the United States and upcoming summer vacation season. Some crypto investors could use the rule ‘sell in May and go away’, but the general market’s sentiment is more shifted towards greed rather than fear so far. Therefore, most of the crypto speculators could use the buy-and-hold trading strategy, targeting long-term perspective, and keeping cryptocurrencies in portfolios till Christmas, unless something crucial happened on the fundamental side of things. The U.S. and global stock indices dropped recently, meaning that equities investors went sold out companies shares. Even though some of them decided to dive in safe-havens such as Treasuries and Bonds, cryptocurrencies are also in demand, especially when it comes to the second largest Altcoin from the market capitalisation and trading volume. We’d hold Ethereum as well. 
     

    Weekly Cryptocurrencies technical outlook - May 27_2


    LTC/USD: Bullish

    Litecoin is back to lead the crypto market. Last week’s performance showed that the Altcoin is still one of the most attractive cryptocurrencies across the board. The surge of 20%+ and the breakout of significant technical resistance level added chances for Litecoin to keep the bullish rally in the week ahead and beyond. The daily chart below shows that the technical sentiment is extremely bullish with the lowest chances for a bearish reversal since April last year. Ichimoku Cloud trend indicator is exceptionally bearish; the bullish channel we drew works well; the horizontal resistance of $110.90 does not hold the bulls anymore. Tow scenarios are possible for the near-term perspective. First, a bearish retracement could push Litecoin price from the resistance trendline (blue) to Ichimoku’s Conversion Line, which is the nearest support curve. In that case, we’d gladly add more volume in LTC/USD long positions. Second, the bulls could chart a breakthrough and acceleration. If daily close price breached the blue resistance line clearly, and if the horizontal static barrier ($125.42) was not able to hold the price, then an explosion could occur. Litecoin could soar in a blink of an eye as technically speaking, and there’s a free space above that level. The only significant pit-stop could happen at the price mark of $180, which is 58% appreciation from current price. Sideways consolidation is not likely given the pace of the bullish rally last weekend. 

    Weekly Cryptocurrencies technical outlook - May 27_1


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