Home Crypto Crypto Market Analysis A Trend Reversal Not In Play?

A Trend Reversal Not In Play?

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General overview

Market Cap: $424,282,841,076

24h Vol: $23,596,667,350

BTC Dominance: 36.5%

Drop In Market Capitalization

After the drop in market capitalization yesterday from 425,520,000,000$ to 404,000,000,000$ it’s been steadily rising. The momentum behind the drop in market capitalization is much stronger than the one behind the rise, which indicates that bears have more power at the moment and we are getting into their territory.

News

IMF Report Says Crypto Does Not ‘Pose Risks’ To Global Finance

Cryptocurrencies “do not appear to pose risks to financial stability,” the International Monetary Fund (IMF) said in a report published the second week of April.

Source: cointelegraph.com

WSJ: ETH Now In A ‘Gray Zone’, But 2014 ICO Was Likely An ‘Illegal Securities Sale’

Ethereum (ETH), the world’s second largest cryptocurrency, is coming under particular scrutiny from U.S. federal regulators, the Wall Street Journal (WSJ) reports today, May 1. According to the WSJ, regulators are debating whether or not to classify it as a security under U.S. law.

Source: cointelegraph.com

South Korean Central Bank: Crypto And Blockchain To Provide Cash-Free Society

South Korea’s central bank, the Bank of Korea (BOK), has recently announced it is considering cryptocurrencies and blockchain applications for its project for a “cashless society,” local news TokenPost reports May 1.

Source: cointelepraph.com

Vitalik Buterin: ‘Sharding Is Coming’

Sharding is coming, wrote Vitalik Buterin in a three-word tweet yesterday that received nearly 2,000 retweets and over 4,000 likes as of press time.

Source: ethnews.com

Analysis

BTC/USD

From yesterday’s opening Bitcoin’s price has increased by 1,25%, from 8975 to 9088 where is now sitting.

Analysis BTC/USD

The daily chart shows buying pressure indicated in the yesterdays and today’s wick. The price has bounced off 100-day EMA and is now struggling to get above 0.5 Fibonacci level.

crypto daily chart

Zooming into the hourly chart, we can see the interaction with the 0.5 Fibonacci level, which serves as resistance at the moment, as the 50 and 100-hour EMA also do.

Hourly chart signals a buy.

Hourly chart signals a buy

Pivot points:

S3 8185.8
S2 8615.2
S1 8841.7
P 9044.5
R1 9271.0
R2 9473.8
R3 9903.1

ETH/USD

During the first hour following yesterday’s open, Ethereums price dropped by 5,6%. Since then the price has been on the rise coming from that lowest point at 633$ to 682$ where it is now.

Real Time Market Data

Looking at the daily chart, we can see that yesterday’s candle closed depicting a dragonfly doji, bouncing off the 100-day EMA, and the price, again, went above 1.618 Fibo level. Today it started as a green candle which is a good sign.

ETHUSD daily chart

Zooming into its hourly chart, we can see the mentioned drop in price, and the quick bounce back to the prior mean.

hourly chart

Hourly chart signals a strong buy.

Pivot point

S3 558.03
S2 608.38
S1 639.70
P 658.73
R1 690.05
R2 709.08
R3 759.43

XRP/USD

As in the case of Ethereum, Ripple’s price has dropped by 5% during the opening hourly candle yesterday, and is on the rise since then, increasing by 8,62%, coming from 0.789$ to 0.8555$ where it is now.

XRP/USD

Yesterday’s candle also closed as a dragonfly doji, bouncing off the 100-day EMA.

XRPUSD-chart

Zooming into its hourly chart, we can see the similarities with the ETH pattern. The price is currently interacting with 100% Fibonacci level which serves as resistance.

hourly chart

The hourly chart signals a strong buy.

Pivot points

S3 0.69380
S2 0.75671
S1 0.79512
P 0.81962
R1 0.85803
R2 0.88253
R3 0.94544

Conclusion

Considering that the drop in market capitalization wasn’t by that much and that the evaluation is holding ok at these levels for days now, we can conclude that the sideways price action that we see now in the markets means indecision.

the drop in market capitalization

Because of this and the fact that yesterdays candles close as dragonfly doji’s on two major cryptocurrencies, I am concluding that trend reversal is not in play. However, strong momentum is needed in order to exceed prior highs, because of the strong resistance at the current levels.

©Forex.Academy

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