Home Crypto Crypto Market Analysis Daily Crypto Update 01.06.2018 – Ascending Triangles

Daily Crypto Update 01.06.2018 – Ascending Triangles

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General Overview


Market Cap: $335,204,491,129

24h Vol: $16,264,540,111

BTC Dominance: 38.6%

In the last 24 hours, cryptocurrency market capitalisation has been struggling to get past the level of around $335 billion dollars, but no new highs have been made. However, we can see that higher lows have been made as buyers are pushing the evaluation, forming an ascending triangle pattern. 

The market is showing mixed colours, with an average percentage change among the top 100 being very small. Biggest gainers are IOTA by 11%, Hshare 11,28%,  Huobi token 22%.


News


In the last 24 hours, a lot of news has came out. I have filtered out those that are most significant and could impact the market sentiment. Top stories are mostly positive in nature, however, there are some that could impact the market negatively. These are the headlines:

Polish Gov’t Invites BitBay to Join Working Group as Exchange Forced to Leave Country

Recently expatriated Polish cryptocurrency exchange BitBay tweeted yesterday, May 30, that the Polish Financial Supervision Authority (KNF) has asked them to join a Blockchain Working Group.

Tenth Largest Crypto TRON to Leave Ethereum, Launches Beta Version of Own Blockchain

TRON (TRX) launched a beta version of its independent public blockchain at 12 am UTC, today May 31, according to a press release shared with Cointelegraph. Tron is currently the tenth largest cryptocurrency by market capitalisation.

Mary Meeker’s 2018 Internet Trends Report Shows Interest in Crypto ‘Exploding’

Former Wall Street analyst Mary Meeker’s well-known annual Internet Trends report for 2018, published May 30, shows interest in cryptocurrency “exploding” since January of last year. The report also highlights that a course on Bitcoin (BTC) and cryptocurrency technologies made it into the top 10 most popular university classes in 2017.

Spain: Innovation-Aimed Crypto Regulation Wins Cross-Party Support in Congress

Draft legislation that would favourably regulate blockchain technology and cryptocurrencies has received unanimous support in the Spanish Congress, Europa Press reported yesterday, May 30.

Ripple CEO Compares Bitcoin to Napster, Says BTC’s Influence on Market Could Lessen

Brad Garlinghouse, CEO of Ripple (XRP), thinks that Bitcoin’s (BTC) influence on cryptocurrency market prices will eventually decrease, CNBC reported yesterday, May 30.

Coinbase Board Member: Crypto Ecosystem Will Not See Regulation for Years

Kathryn Haun, board member of Coinbase and HackerOne claimed that cryptocurrency and blockchain will not see regulation for years, Techcrunch reports May 31. Haun made her statements on regulation at the Code Conference in California today.

IMF Official Calls for Regulation, Tech Adoption By Banks to Fight ‘Crypto Competition’

An official from the International Monetary Fund (IMF) suggested that central banks need to make fiat currencies “more attractive for the digital age” in an article published May 31. Deputy Director of the Monetary and Capital Markets Department Dong He suggested three responses to combat potential competition to central banks from cryptocurrencies.

Norway’s Largest Bank to Explore Applications for IOTA’s Distributed Ledger Technology

DNB ASA (Den Norske Bank), Norway’s largest financial services group, and the IOTA Foundation (IOTA) have signed a memorandum of understanding (MOU), according to a press release May 31. DNB and IOTA will now reportedly co operate to explore applications of the IOTA Tangle, a “third-generation” distributed ledger (DLT).

US Crypto Exchange Signs Agreement to Offer Fiat-Crypto Trading to Corporate Clients

Seattle-based crypto exchange Bittrex has signed a banking agreement that will allow corporate investors to trade selected cryptocurrencies for fiat, Bloomberg reports today, May 31.

Source: cointelegraph.com


Analysis


BTC/USD

From yesterday’s open, the price of Bitcoin has increased by 2.37% – from 7374$ to 7535$ where it is currently sitting.



 

On the daily chart, things haven’t changed much. The price is still below the baseline support which now serves as strong resistance.



 

Zooming into the hourly chart we can see the same pattern as on the global graph for the cryptocurrency market capitalisation – an ascending triangle which is a bullish sign.


Market sentiment

Bitcoin hourly chart technicals signal a strong buy.

Oscillators are on buy and moving averages a strong one.


Pivot points

S3 6951.1 
S2 7212.8 
S1 7349.3 
P 7474.5 
R1 7611.0
R2 7736.2
R3 7997.9

ETH/USD

From yesterday’s open, the price of Ethereum has increased by 4.38% – from 560$ to 584$ where it is now.



 

Looking at the daily chart, we can see that the price went higher than in the previous two days but has now retraced back to the levels of yesterday’s candle high.



 

Zooming into the hourly chart, we can see a similar ascending triangle forming and it looks like the breakout is very close. Ascending triangles are bullish in nature, but in this case, it looks more like a rising wedge which is a bearish sign. And if we take the proximity of the 0.382 Fibonacci level which serves as resistance we conclude that the price is likely going to break out from the downside.


Market sentiment 

Ethereum is in the strong buy zone.

Oscillators are on buy, and moving averages are indicating a strong buy.


Pivot points

S3 504.05 
S2 538.11  
S1 557.55  
P 572.17  
R1 591.61 
R2 606.23
R3 640.29

XRP/USD

In the last 24 hours, the price of Ripple has increased by 4%, coming from 0.591$ to 0.614$.



 

On the daily chart, things haven’t changed much, the price is still in the range between the support at 0.573 and 0.236 Fibonacci retracement levels. The current candle is green but hasn’t exceeded prior two candle wicks.



 

On the hourly chart, we can see a familiar pattern again, as markets are strongly correlated.


Market sentiment

Ripple is in the buy, as indicated by the hourly chart technicals.

Oscillators are signaling a buy, and moving averages a strong one.


Pivot points

S3 0.54396 
S2 0.57567 
S1 0.59333 
P 0.60738 
R1 0.62504 
R2 0.63909 
R3 0.67080

Conclusion


The global charts, as well as charts from three major cryptocurrencies, are forming an ascending triangle pattern which is a bullish pattern. Technical indicators are also bullish as they are signaling a buy. We cannot conclude that the bottom is in before we see a breakout from the ascending triangle on the upside, but I am pretty sure that we have hit a temporary bottom, and I say temporary because I am expecting new lows, but first, the price needs to be pushed higher to trigger large selling. Watch carefully what happens in the next 24 hours.

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