Price Analysis 5/27: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, XTZ, ADA
Although Bitcoin (BTC) has weathered the current crisis and come out on top, Goldman Sachs only focused on the March 12 fall in a presentation to its clients. Using liberally interpreted information, Goldman appears to be discouraging their clients from diversifying their portfolios with Bitcoin allocations.
Luckily, there are a few large players who understand the potential of cryptocurrencies. Kingdom Trust, a financial custodian that manages more than $13 billion in assets, has launched a retirement account dubbed “Choice”, which offers an opportunity to its clients to invest in the top-ranked cryptocurrency along with other traditional assets.
Daily cryptocurrency market performance. Source: Coin360
Several traders stay away from cryptocurrencies as they are scared of volatility. However, those who can identify the trend and trade along with proper risk management principles can benefit from the volatility. On the other hand, several whales have made a fortune by not selling their holding on every swing.
This shows that people are using different strategies to make the most of this new asset class which consistently offers retail investors the opportunity to generate profits with all the overhead and regulation required by traditional investment brokers.
BTC/USD
Bitcoin (BTC) reversed direction from $8,638.79 on May 25, which is a positive sign. It suggests that selling pressure dries up at lower levels and at the same time, bulls are not waiting for a deeper correction to buy.
BTC–USD daily chart. Source: Tradingview
The BTC/USD pair has formed a symmetrical triangle, which usually acts as a continuation pattern. That means the breakout is likely to happen in the direction that was in play before this pattern developed.
In this case, the pair had risen sharply from the lows, hence, the possibility of a break above the triangle is high. However, there are no certainties in trading. Therefore, traders should be ready for any eventuality.
A break above the triangle will be a huge positive as the pattern target is $11,828. However, traders should keep an eye on the $10,500 level as the bears are likely to defend this aggressively.
The bearish scenario would come into play if the pair turns down and plummets below the triangle. The pattern target of such a drop is $6,752.
ETH/USD
Ether (ETH) dipped below the downtrend line on May 26 but the bears could not sustain the lower levels. This suggests that the bulls are buying on dips. The bulls are now likely to make another attempt to push the price above the downtrend line.
ETH–USD daily chart. Source: Tradingview
If successful, the 2nd-ranked cryptocurrency on CoinMarketCap will complete a bullish inverse head and shoulders pattern. This setup has a target objective of $257. Although the bears will defend the $227.097 level aggressively, it is likely to be scaled.
Therefore, a close (UTC time) above the downtrend line offers a buying opportunity to the traders.
This bullish view will be invalidated if the ETH/USD pair turns down from the downtrend line and plummets below $191.692. If this support cracks, a drop to $176.112 is likely.
XRP/USD
After aggressively buying the dip on May 25, the bulls are now attempting to drive XRP above the moving averages and the downtrend line. If successful, a rally to $0.22504 and then to $0.23612 is likely.
XRP–USD daily chart. Source: Tradingview
Currently, both moving averages remain flat and the relative strength index is also just below the midpoint, which suggests a balance between supply and demand.
If the 3rd-ranked cryptocurrency on CoinMarketCap turns down from the moving averages or the downtrend line, it will indicate a lack of buyers at higher levels. In such a case, the bears will make another attempt to sink the price below $0.17372. If successful, the XRP/USD pair could turn negative.
BCH/USD
Bitcoin Cash (BCH) continues to trade inside the tight $217.55-$255.46 range. The bulls purchased the dip to the support of this range on May 25 and are now attempting to drive the price above the moving averages.
BCH–USD daily chart. Source: Tradingview
If successful, a rally to $255.46 and above it to $280.47 is possible. Therefore, traders who have purchased on the suggestion given in the previous analysis can keep the stops just below $217 and can trail the stops higher as the price moves up.
This view will be invalidated if the 5th-ranked cryptocurrency on CoinMarketCap turns down from the moving averages and plummets below $217.55. Below this level, a drop to $200 is possible.
BSV/USD
Bitcoin SV (BSV) turned around from $176.410 on May 26, which suggests that bulls are defending the support of the $170-$227 range. If traders have purchased on a bounce off the lows as suggested in the previous analysis, the stops can be placed just below $170.
BSV–USD daily chart. Source: Tradingview
A break below $170 will be a huge negative as it will indicate that the bears have overpowered the bulls. That could drag the 6th-ranked cryptocurrency on CoinMarketCap to $145 and then to $120.
Conversely, if the bulls succeed in pushing the price above the downtrend line, a rally to $227 is possible. A break above $227 could start a new uptrend.
If the BSV/USD pair turns down from the downtrend line, it will suggest weakness. Therefore, traders can reduce their risk by trailing the stops higher as the price moves north.
LTC/USD
The failure of the bears to drag Litecoin (LTC) down towards the critical support of $39 shows a lack of selling at lower levels. The bulls will now attempt to push the price above the moving averages.
LTC–USD daily chart. Source: Tradingview
If successful, a move to the downtrend line and above it to $50.7864 is likely. Such a move will invalidate the developing bearish H&S pattern.
The 7th-ranked cryptocurrency on CoinMarketCap is likely to pick up momentum above the $50.7864-52.2803 overhead resistance.
Conversely, if the LTC/USD pair turns down from the downtrend line once again, it will increase the possibility of a break below $39, which will complete the bearish setup.
BNB/USD
Binance Coin (BNB) is attempting to move up to the downtrend line. However, the gradual pace of rise shows that the bulls are in no urgency to buy aggressively at the current levels. Both moving averages are flat and the RSI is just above the midpoint, which suggests that the range-bound action is likely to continue for a few more days.
BNB–USD daily chart. Source: Tradingview
If bulls can push the price above the downtrend line, the 8th-ranked crypto-asset on CoinMarketCap could rise to $18.1377. This is an important level to watch out for. If the bulls can drive the price above $18.1377, the momentum is likely to pick up. The first target on the upside would be $21.50.
Conversely, if the BNB/USD pair turns down from the downtrend line or from $18.1377, the range-bound action is likely to continue for a few more days. A new downtrend is likely to start on a break below $13.65.
EOS/USD
Although EOS has been trading below both the moving averages for the past few days, the bears have not been able to sink the price below the critical support of $2.3314. This indicates a lack of selling at lower levels.
EOS–USD daily chart. Source: Tradingview
If the bulls can now push the price above the moving averages, the 9th-ranked cryptocurrency on CoinMarketCap can rally to $2.8319. A break above this level will invalidate the developing H&S pattern.
However, if the price again turns down from the moving averages, then the possibility of a break below $2.3314 increases. Both moving averages are flattening out and the RSI is just below the 50 levels, which indicates a balance between supply and demand.
Traders can wait for the EOS/USD pair to breakout of the range and start a trending move before initiating a long position.
XTZ/USD
Although Tezos (XTZ) broke below the support line of the ascending channel on May 24, the bears have not been able to capitalize on the breakdown. This suggests a lack of sellers at lower levels.
XTZ–USD daily chart. Source: Tradingview
The bulls have defended the 20-day exponential moving average ($2.67) for the past few days and are now likely to try and launch the 10th-ranked cryptocurrency on CoinMarketCap above the downtrend line.
If successful, the uptrend is likely to resume with a target objective of $3.07 and then $3.27. Therefore, short-term traders can attempt to ride this move higher by using a stop-loss just below $2.57.
If the XTZ/USD pair turns down from the downtrend line, it will indicate that the bears are active at higher levels. In such a case, a retest of $2.57 is possible. The price action at the downtrend line will determine whether the uptrend will resume or a decline to $2.24 will begin.
ADA/USD
The bulls have successfully defended the 20-day EMA ($0.052) in the past few days. This suggests that the bulls will now attempt to carry Cardano (ADA) above the overhead resistance at $0.0575409.
ADA–USD daily chart. Source: Tradingview
If successful, a rally to $0.0619885 is possible. The upsloping moving averages suggest that the bulls have the upper hand. The only negative development on the chart is the bearish divergence on the RSI.
While the divergence warrants caution, it should not be the lone reason to short or to close the long position. Many times, the divergences can get negated with sharp rallies.
Therefore, traders can try to ride the uptrend in the 11th-ranked cryptocurrency on CoinMarketCap. This bullish view will be invalidated if the price turns down and plummets below $0.0504050.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.