Home Crypto Crypto Market Analysis Daily Crypto Update 05.06.2018 – More Sideways Price Action

Daily Crypto Update 05.06.2018 – More Sideways Price Action

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General Overview


Market Cap: $335,633,090,494

24h Vol: $15,957,362,042

BTC Dominance: 37.9%

In the last 24 hours, the cryptocurrency market cap has been decreasing from yesterdays high at 354,9 billion dollars to 335,633 billion dollars where it is currently.

The market is mostly mixed in colour, but the dominant one is definitely red with approximately a 3% decrease. Biggest losers amongst the top 100 coins are Bitcoin Private -14% and DigixDao -11%. Only Huobi Token experienced a significant increase of 14%.


News


Although there are news items in the last 24 hours that are bearing a positive tone, there aren’t any significant ones that can change the market’s bearish sentiment, as those that are positive are mostly regarding blockchain tech adoption and technology utilisation. Such stories are the following:

DHL Announces Partnership Trade Finance Platform TradeIX

DHL is partnering with blockchain trade finance platform TradeIX, according to a presentation today, June 5, at the Money20/20 conference in Amsterdam.

Crypto Tipping Added to Streamlabs App, Responsible for 15% of Twitch Streams

Broadcasters on Streamlabs, a Twitch streaming app, can now accept cryptocurrency as tips, the Steamlabs blog posted on June 1.

Our Blockchain ‘Can Run The Whole Company’, Says Mastercard Vice Chair at Money20/20

Mastercard has “built a Blockchain that can run the whole” of its network, its vice chair Ann Cairns claimed during the ongoing Money20/20 conference June 4.

As you can see, the Money20/20 conference was mentioned twice. That conference is taking place from 4-6 of June in Europe, and its a conference “Where the entire payments, fintech, and financial services industry connects”, so the positive news that is coming from there is significant.

Coinbase – leading crypto-fiat gateway exchange is expanding to the Japanese market, which may lead to an increase of cryptocurrency users, as they will get more exposure to the space.

Coinbase intends to apply for a license with the country’s financial regulator, the Financial Services Agency (FSA), “within the year,” a process that has been mandatory for all crypto exchanges operating within the country since the amendment of Japan’s Payment Services Act in April 2017.

Source: cointelegraph.com

On the flipside, there are two major news items that are negative:

Google searches for ‘bitcoin’ nosedive 75% this year as interest in struggling cryptocurrency wanes, as reported by CNBC

Searches for the term “bitcoin” have dropped more than 75 percent since the beginning of this year and roughly halved over three months, according to research from Google Trends.

Nicholas Colas, co-founder of DataTrek Research, pegged waning searches as a bad sign for prices.

“We use Google Trends to track search queries for ‘bitcoin’ as a proxy for potential new buyers,” Colas said in an email to clients Monday. “Bitcoin needs a new narrative in order to re establish global attention.”

The other piece of negative news is that Bitcoin dies for the 300 time, as Forbes said in an article entitled “Bitcoin’s Need For Electricity Is Its ‘Achilles Heel” stated:

Bitcoin’s advocates claim that it is immune from government control. ”It can’t be shut down,” they say. This might have been true in the early days, when Bitcoin could be mined on an ordinary laptop. But in these days of giant mining farms, Bitcoin desperately needs abundant cheap electricity supplies. Without access to abundant electricity, Bitcoin mining can’t continue, and without mining, Bitcoin is dead. And ultimately, electricity supply is controlled by governments.

This 300th place is according to the 99bitcoins Bitcoin obituary list.

The most significant informative headline is that Block.one’s EOS has officially been launched, after a year-long ICO stage in which they raised over 4 billion dollars. This is the moment of truth for this cryptocurrency, as it is the largest competitor of Ethereum. Now developers can build Dapps on the blockchain and we will see what the future holds for the EOS ecosystem, and reassure ourselves if the promises stated in the whitepaper are going to be met.


Analysis


BTC/USD

In the last 24 hours, the price of Bitcoin has decreased from 7715$ to 7419,2$ where it is now on a downward trajectory, which is a decrease of 3.87%.



 

Looking at the daily chart we can see that the price was repealed by the 0.236 Fibonacci retracement level and that yesterday’s candle ended on the support at the 7470$ level. Today’s candle started off at those levels and quickly fell below the support.



 

Zooming into an hourly chart we can see the interaction with the mentioned levels, and after two significant headlines being crossed – baseline support (black bold line) and prior range support (red line), the price is heading toward the triangle support (blue bold line) which is around 7000$ levels.


Market sentiment

Bitcoin is in the sell zone, as indicated by hourly chart technicals.

Oscillators are signalling neutral, and moving averages are on a strong sell.


Pivot points

S3 6942.0 
S2 7254.9 
S1 7371.6 
P 7567.8 
R1 7684.5 
R2 7880.7
R3 8193.6

NEO/USD

The price of Neo has decreased by 8.87% from yesterday’s open, dropping from 57,33$ to 52,3$ where it is now.



 

Looking at the daily chart we can see that the price found support at the 0.236 Fibonacci retracement level which is where the baseline support area is.


 

Zooming into an hourly chart we can see that nice bounce off of the Fibo level, but we can also see there’s no interaction with the baseline support. The price is still in a downward trajectory, which is why I am expecting to see the interaction with the baseline support, which would be a lower low at around 51.3$ level.


Market sentiment

Neo is in the sell zone.

Oscillators are on neutral, and moving averages are signaling a strong sell.


Pivot points

S3 43.81 
S2 49.07 
S1 51.24 
P 54.34 
R1 56.50 
R2 59.61 
R3 64.88

XRP/USD

From yesterday’s open until now, the price of Ripple has decreased by 5.13% – from 0.6931$ to 0.65751$.



 

Looking at the daily chart, we can see that the price found support at the 0.236 Fibonacci level, and the current candle is a doji with a bigger wick from below, which indicated buying pressure.



 

Zooming into an hourly chart we can see that the price action has created a cluster and the break out is soon going to happen. As the price is in an uptrend overall, I am expecting the price to break out from the upside, and potentially reach the prior range resistance at just slightly below 0.7$.


Market sentiment

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

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


Pivot points

S3 0.52206 
S2 0.59328 
S1 0.62397 
P 0.66450 
R1 0.69519 
R2 0.73572 
R3 0.80694

Conclusion


As I have said in my weekly update, I am expecting a lot of sideways movement in the following week, and that’s exactly what is happening in the markets currently. Bitcoin is falling and while some cryptos are in the same cycle as Bitcoin and are following it accordingly, some like Ripple, are in they’re different stages of corrective waves and are going to show some bullish moves, but the overall sentiment is still bearish.

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