Home Crypto Crypto Market Analysis Interaction with key resistance may trigger a pullback

Interaction with key resistance may trigger a pullback

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General overview

Market Cap: $460,879,175,725

24h Vol: $30,774,553,262

BTC Dominance: 36.1%

At yesterday’s open cryptocurrency market, capitalization was $433,190,000,000, and since then the evaluation has been on a steady rise, coming to $460,879,175,725 where it is now.

daily cryptocurrency market

As you can see from the global chart, the evaluation is currently resting at these level, forming a plateau.

 

News

There is no significant news that came out in the last 24 hours, that can affect the market.

Ethiopian Gov’t Signs Agreement With Cardano To Introduce Blockchain In Agritech

The Ethiopian government has recently signed a memorandum of understanding (MOU) with cryptocurrency startup Cardano (ADA), The Next Web reports May 3. The agreement will see Ethiopian developers apply blockchain technology to the country’s agritech industry.

Source: cointelegraph.com

US: Arizona’s Cryptocurrency Tax Bill Sees Rollback On Crypto Acceptance

The Arizona House of Representatives passed Senate Bill 1091, a tax bill that would allow citizens to pay their taxes using cryptocurrencies, according to public records May 2. Following the recent vote however, this initiative has been hampered with amendments.

Source: cointelegraph.com

Analysis

In the last 24 hours, the price of Bitcoin has increased by 5.33% coming from $9212 at the yesterdays opening to $9700 where it is now.

support resistance trading

Looking at the daily chart we can see that the price is currently above the 0.618 Fibonacci level, and is now interacting with it, retesting it for support.

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Zooming into an hourly chart we can see that the price has broken out of the triangle which it was in until yesterday. We can also closely see the interaction with the Fibonacci level, which is being retested for support.

Hourly chart signals a buy

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Pivot points

S3 8170.3
S2 8884.3
S1 9321.7
P 9598.3
R1 10035.7
R2 10312.3
R3 11026.3

ETH/USD

Since the yesterdays open, the price of Ethereum has increased by 16,4% coming from $688 to $802 where it is now.

forex support and resistance strategy

Looking at the daily chart we can see that the price rose up with a strong momentum from slightly above 1.618 Fibonacci level to 2.0 which serves as resistance.

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Zooming into an hourly chart we can see that after a bull flag we saw yesterday the price continue a strong upward trajectory and is now sitting at 2 Fibonacci level.

Hourly chart signals a strong buy.

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Pivot points

S3 546.06
S2 649.09
S1 714.24
P 752.12
R1 817.27
R2 855.15
R3 958.18

XRP/USD

In the last 24 hours, the price of Ripple has increased by 5.58%, rising from $0.861 to $0.91 where it is now sitting.

price action trading

Looking at the daily chart we can see that the price of Ripple didn’t create a higher high from the previous time, and that the price was repealed by this key resistance line at $0.92. The price is above the 100% Fibonacci level and both 100 and 50 day EMA.

support and resistance trading strategy

Zooming into an hourly chart we can see that the price has broken out of the channel, but the resistance at $0.92 was too strong.

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Hourly chart signals a strong buy

Pivot points

S3 0.75713
S2 0.81425
S1 0.84801
P 0.87137
R1 0.90513
R2 0.92849
R3 0.98561

Conclusion

After the surge in price, we have seen three cryptocurrencies this week that we are covering in this daily report, that are starting to interact with their strong resistance lines. Keeping in mind that the weekend is coming and that this uptrend lasted slightly less than a month (from April 9.), I think those resistance levels are going to trigger a pullback. For the forecast on the upcoming week, make sure to check my weekly crypto update where I provide an overview from the past week and forecast what is likely to happen in the next week. Things are going according to my three-week-old forecast so far, and it’s getting close to completion.

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