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As Bitcoin Continues Its Climb, Top Altcoins Also Tease Breakout

markets View Bitcoin’s price hit fresh six-month high earlier today, further strengthening the case for a rally to $6,500 (100-week moving average). BTC may witness a pullback to levels near $6,100 before rising toward that level, though, according to the hourly chart. A bull flag breakout on the total market capitalization chart for all other…

As Bitcoin Continues Its Climb, Top Altcoins Also Tease Breakout

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  • Bitcoin’s price hit fresh six-month high earlier today, further strengthening the case for a rally to $6,500 (100-week moving average).
  • BTC may witness a pullback to levels near $6,100 before rising toward that level, though, according to the hourly chart.
  • A bull flag breakout on the total market capitalization chart for all other cryptos, if confirmed, could be considered a sign the much-anticipated altcoin rally has begun.
  • Among those, litecoin could shine bright as both fundamentals and technicals have aligned in favor of the bulls.

Bitcoin’s (BTC) ascent continues with prices hitting new multi-month highs earlier today, and other top cryptocurrencies may soon join the party.

Bitcoin violated the resistance zone of $6,055–$6,100 with a UTC close at $6,156 on Thursday and reached a six-month high of $6,336 on Bitstamp at 07:40 UTC today.

Prices have now hit multi-month highs on three consecutive days – a sign of strong bullish sentiment. With every move higher, both the short- and long-term bull cases presented by several technical indicators over the last few weeks have gained strength.

BTC, therefore, appears on track to test the 100-week price average, currently at $6,506 – a level that last came into play last November.

As of writing, the cryptocurrency is changing hands at $6,260 on Bitstamp, representing a 3.45 percent gain on a 24-hour basis.

Daily and weekly charts

BTC continues to establish bullish higher highs and higher lows on the daily chart (above left) with key moving averages trending north.

The relative strength index (RSI) is reporting overbought conditions with above-70 reading. That signal, however, would gain credence if and when the momentum starts weakening. As of writing, the bulls are showing no signs of exhaustion.

Further, the weekly RSI (above right) is currently printing the strongest bullish signal in over 15 months.

Hourly chart

On the hourly chart, the RSI has breached the ascending trendline to the downside and is rolling over from overbought levels. Hence, we may see a minor pullback to the ascending trendline support, currently at $6,140, before rising toward $6,500.

Altcoins tease breakout

While bitcoin has doubled in value over the last six weeks, altcoins have underperformed big time, as indicated by the massive depreciation of their BTC-denominated exchange rates.

  • The top 10 altcoins by market capitalization (excluding stablecoin tether/USDT) are reporting double-digit losses on a 30-day basis.
  • Stellar (XLM), down 40 percent, is the biggest loser, followed by cardano (ADA) and tron (TRX).
  • With a 14 percent drop, Binance coin (BNB) is the best performing major altcoin.

The numbers indicate a lack of interest in altcoins despite BTC’s confirmation of the long-term bullish reversal on April 2.

The battered altcoins, however, could soon find some love, as their combined market capitalization seems to have charted a bullish technical pattern.

Total altcoin market capitalization

The bull flag seen in the above chart is a continuation pattern that often ends up accelerating the preceding rally.

A convincing break above the upper edge of the flag, currently at $73.65 billion, would confirm a flag breakout and signal a continuation of the rise from lows near $45 billion seen in February.

A flag breakout, if confirmed, could be considered a sign the much-anticipated altcoin rally has begun. As of writing, the total altcoin market cap is seen at $72 billion.

Among the major altcoins, litecoin (LTC) could shine bright, as its mining reward halving is due in less than 90 days.

The process aimed at curbing inflation by reducing mining rewards by half every four years tends to put a strong bid under the cryptocurrency for months in advance, according to historical data.

Litecoin daily chart

Litecoin’s channel breakout indicates the path of least resistance is to the higher side. Prices, therefore, could rise above $100 ahead of the reward halving event.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin and litecoin image via Shutterstock; charts by Trading View

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Robinhood Opens Trading for 7 Cryptocurrencies in New York

news Robinhood, the popular stock and crypto investing app, has officially launched bitcoin, ethereum, and other cryptocurrency trading in New York. Silicon Valley-based Robinhood received a BitLicense from the New York Department of Financial Services (NYDFS) in January 2019 and on Thursday opened access to crypto trading in the Empire State. From the press release: Currently, you…

Robinhood Opens Trading for 7 Cryptocurrencies in New York

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Robinhood, the popular stock and crypto investing app, has officially launched bitcoin, ethereum, and other cryptocurrency trading in New York.

Silicon Valley-based Robinhood received a BitLicense from the New York Department of Financial Services (NYDFS) in January 2019 and on Thursday opened access to crypto trading in the Empire State.

From the press release:

Currently, you can invest in seven cryptocurrencies on Robinhood Crypto: Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Litecoin, and Dogecoin. You can also track price movements and news for those and 10 additional cryptocurrencies.

New York is unique and problematic for crypto traders because all purveyors must apply for a BitLicense, most notably for companies that are “storing, holding, or maintaining custody or control of virtual currency on behalf of others,” according to NYDFS.

Many crypto startups have avoided the requirements entirely by becoming BitLicense refugees and refusing to do business in the state.

“Here we are two miles from the Statue of Liberty and you cannot sell CryptoKitties in the state without that license. That’s the absurdity of what’s happened here,” ShapeShift CEO Erik Voorhees complained in 2018 when asked about the controversial license at CoinDesk’s Consensus conference in New York.

Image courtesy of Robinhood

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Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Binance Coin, Stellar, Cardano, TRON: Price Analysis May 22

HitBTC exchange.” data-reactid=”19″ type=”text”>Market data is provided by the HitBTC exchange.Analysts believe that the rally in Bitcoin might witness a short-term blip but is likely to resume its up-move and reach $9,659 by year’s end. The reason for the rise can be attributed to various positive developments in the crypto field and also to the ongoing…

HitBTC exchange.” data-reactid=”19″ type=”text”>Market data is provided by the HitBTC exchange.

Analysts believe that the rally in Bitcoin might witness a short-term blip but is likely to resume its up-move and reach $9,659 by year’s end. The reason for the rise can be attributed to various positive developments in the crypto field and also to the ongoing trade war between the top two economies of the world, China and the United States. Digital Currency Group founder Barry Silbert believes that Bitcoin is acting like a safe haven, as it has done in the past during Brexit and Grexit.

The current recovery from the lows was backed by strong institutional flows, as indicated by the record volumes on the Bitcoin derivatives exchanges. Along with the different cryptocurrencies, stablecoins are also being sought by traders. According to crypto research firm Diar, the market capitalization of stablecoins has topped $4 billion. Even with all the controversy surrounding it, Tether continues to be the leader with trading volumes in 2019 already exceeding that of the entirety of 2018.

Early backers of EOS are likely to make huge returns on their initial investments if they sell out in the buyback offer announced by Block.one. The seed round in 2017 had valued the company at $40 million, while the buyback offer values the company at $2.3 billion.

BTC/USD

Bitcoin (BTC) continues to be in an uptrend. Both the moving averages are sloping up and the RSI is in positive territory. This suggests that the bulls are in command. However, after a sharp rally, a minor correction or a consolidation is to be expected.

BTC/USD

The bulls are finding it difficult to breakout of the overhead resistance at $8,496.53, but on the downside, the bulls are buying the dips to the 20-day EMA. Until either level is crossed, the BTC/USD pair is likely to remain range bound for the next few days.

Contrary to our assumption, if the pair breaks out and closes (UTC time frame) above the overhead resistance, a rally to $10,000 will be in the cards. However, we do not expect this level to be crossed in a hurry.

On the downside, a break below the 20-day EMA and $6,933.90 support zone can plunge the pair to $5,900. This is an important level to watch on the downside because if it breaks, the trend will turn in favor of the bears. We will wait for a new buy setup to form before recommending a trade in it.

ETH/USD

Ethereum (ETH) has been trading in a tight range of $220–$270 for the past five days. The trend remains bullish as both the moving averages are sloping up and the RSI is close to the overbought zone.

ETH/USD

If the ETH/USD pair breaks out of $270, it can move up to $290.92. Above this level, a rally to the next resistance zone of $300–$322 is probable. The 20-day EMA will act as a strong support on the downside, below which, a dip to the 50-day SMA is likely. The bears have not been able to close (UTC time frame) below the 50-day SMA since breaking above it on February 17. Hence, a dip below this support will indicate weakness.

XRP/USD

The bulls are struggling to sustain Ripple (XRP) above $0.40. This shows profit booking at higher levels. A failure to break out of $0.45 will indicate a loss of momentum. A break below the 20-day EMA can result in a fall to $0.33108. If this support also gives way, the digital currency can slide to $0.27795.

XRP/USD

Conversely, if the XRP/USD pair rebounds off the 20-day EMA, it can rise to $0.45 and if this level is crossed, a new uptrend is likely. The level to watch on the upside is $0.60 with minor resistances at $0.50 and $0.55.

The 20-day EMA is trending up and the RSI is in the positive territory, which suggests that the bulls have a minor advantage. Therefore, traders can hold their long positions with the stops at $0.2750.

BCH/USD

Bitcoin Cash (BCH) turned down from close to $450 for the third time on May 21. The zone between $450 and the resistance line of the channel is likely to act as a stiff resistance. If the bulls scale this resistance zone, a rally to $600 is probable.

BCH/USD

On the other hand, if the bears sink the BCH/USD pair below the 20-day EMA, it can drop to the support line of the channel. A breakdown of the channel will signal weakness. Currently, bulls have the upper hand as both the moving averages are sloping up and the RSI is in the positive zone.  

EOS/USD

EOS has made an inside day candlestick pattern for the past two days. This shows indecision between the bulls and the bears. If the bulls reassert their supremacy, a rally to $6.8299 is probable. A breakout of this level can push the price to $9.00.

EOS/USD

Conversely, if the bears sink the EOS/USD pair below $5.78, a drop to the 50-day SMA is likely. If this level also fails to support the pair, it can drop to the critical level of $4.4930. We expect this level to hold. If that happens, the cryptocurrency will remain stuck inside the large range of $4.4930–$6.8299 for the next few days.

LTC/USD

Litecoin (LTC) has been trading close to the breakout level of $91 for the past two days. The small trading range of the past two days shows indecision. If the price bounces off $84.3439, it will again try to move up to $107. Above this level, the next target is $158.91

LTC/USD

On the other hand, if the LTC/USD pair fails to break out of the overhead resistance, it might remain range bound for a few days. The pair will turn negative if the $84.3439–$74.6054 support zone breaks down. Therefore, the stops on the long positions can be kept at $70.

Currently, with both the moving averages trending up and the RSI above 50, the advantage is with the bulls. However, the developing negative divergence on the RSI is a red flag.

BNB/USD

Though Binance Coin (BNB) did not breakout of the resistance line on May 21, it has not given up much ground. Both the moving averages are sloping up and the RSI is in the overbought zone. This shows that the bulls are firmly in the driver’s seat.

BNB/USD

A breakout of the resistance line can propel the BNB/USD pair to $40.2919564. But if the pair reverses direction from the current levels, it can dip to the 20-day EMA, which should provide support. Below this, the next strong support is at the 50-day SMA. A breakdown of this support will signal a deeper correction.

XLM/USD

Stellar (XLM) has turned down from the overhead resistance of $0.147620. It can now fall to the 20-day EMA, which is likely to offer some support. If the digital currency bounces off the 20-day EMA, it will attempt to ascend the overhead resistance once again.

XLM/USD

On the other hand, if the bears sink the XLM/USD pair below the moving averages, it can drop to $0.088542. The 50-day SMA is flat and the 20-day EMA is also flattening out. This points to a consolidation in the next few days.

The trend will turn bullish on a break out and close (UTC time frame) above $0.14861760. The next target to watch on the upside is $0.22466773. We will wait for the price to sustain above $0.14861760 before recommending a trade in it.

ADA/USD

Cardano (ADA) is trying to hold above the moving averages for the past five days. However, failure to rebound from the strong support shows a lack of demand at higher levels. If the bears break below the moving averages, the digital currency will weaken and can decline to the next support at $0.057898.

ADA/USD

Conversely, if the ADA/USD pair bounces off the moving averages, the bulls will again try to break out of the overhead resistance at $0.094256. If successful, it will complete the rounding bottom pattern that has a target objective of $0.161275. Hence, we retain the buy recommendation given in an earlier analysis.

TRX/USD

Tron (TRX) has been consistently rising above $0.02815521 for the past three days but is struggling to hold on to higher levels. The price is stuck at the breakout level. If the bulls succeed in sustaining the digital currency above $0.02815521, it can move up to the next target objective of $0.040. If this level is crossed, the next level to watch on the upside is $0.050. Therefore, traders can keep the stop loss on the long positions at $0.0209.

TRX/USD

Contrary to our expectation, if the TRX/USD pair breaks down of the moving averages, it will lose momentum and can drop to the support at $0.02094452. In such a case, the pair might remain range bound for a few days. The 20-day EMA is marginally sloping up and the RSI is just above 50, which suggests that the bulls have a slight advantage.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.” data-reactid=”170″ type=”text”>Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

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