Price Analysis 5/1: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, XTZ, XLM
Most major cryptocurrencies are facing resistance at higher levels, meaning a few days of consolidation could be needed before the rally can resume.
The total crypto market capitalization has jumped from about $198 billion on April 22 to over $263 billion on April 30. This 32% rally in roughly eight days shows that investor sentiment is bullish. While this is a positive sign, the problem is that most people expect a repeat of the previous bull run. But with coronavirus still not reigned in, investors are likely to sway between extreme optimism and pessimism. Therefore, any up move is likely to have its share of sharp pullbacks.
Crypto pioneer Charlie Shrem painted a bullish picture for Bitcoin (BTC) due to the upcoming halving and the massive quantitative easing seen across the world. Shrem pointed out that during the previous halving the price did not double instantly but it started a bull phase that resulted in a massive rally. Therefore, he anticipates that it might take about one to two years for the complete impact to be felt.
Daily cryptocurrency market performance. Source: Coin360
Most major cryptocurrencies have fared exceedingly well in the current crisis when the traditional markets such as equities and crude oil have crumbled. This is likely to attract a lot of institutional investors into this space.
Top venture capital firm Andreessen Horowitz has raised $515 million, $65 million more than its initial goal of $460 million, for its second crypto-oriented fund. This shows the growing interest of institutional investors in the asset class. The reports from several countries and the top crypto exchanges also show that people’s interest in crypto has surged during the current crisis.
Due to this, job openings in the crypto sector have increased while “the traditional system seems to be completely breaking down all over the world,” according to Kraken co-founder and CEO Jesse Powell.
BTC/USD
Bitcoin (BTC), the top-ranked cryptocurrency on CoinMarketCap, surged above the overhead resistance of $8,175 on April 29. That was followed the next day by another move higher that carried the price above $9,200. However, the bulls could not sustain the higher levels as short-term traders booked profits following the sharp rally.
BTC–USD daily chart. Source: Tradingview
However, the positive thing was that the bulls bought the dip to $8,401.06 on April 30. Today, the bulls again pushed the price above $9,000 but they have not been able to sustain the higher levels.
This suggests that the bears are aggressively defending the $9,200 levels. This could result in a drop to the next support at $8,175.49, which is likely to be defended aggressively by the bulls.
If BTC bounces off the current levels or $8,175.49, the bulls will make another attempt to propel it above $9,200. If successful, a rally to $10,000 is possible.
However, if the bulls struggle to scale the price above $9,200, then traders can book profit on about 70% of the long position. The rest of the position can be held with a deeper stop loss, just below the 20-day exponential moving average ($7,626) and as the moving average moves up, the stops can be trailed higher.
This bullish view will be invalidated if the price turns down from the current levels and plummets below $7,454.17.
ETH/USD
Ether (ETH) broke above the ascending channel on April 29 but the bulls could not sustain the price above the channel. On April 30, the price again dipped back into the channel.
This suggests that the bears are still active at higher levels.
ETH–USD daily chart. Source: Tradingview
Currently, the bulls are again attempting to push the second largest cryptocurrency market capitalization above the channel. If successful, it will suggest that the bulls have successfully overpowered the bears.
The ETH/USD pair is likely to pick up momentum on a break above $227.097. Above this level, the up move can extend to $250 and then to $289.599.
Conversely, if the pair turns down from the current levels, it is likely to drop to the 20-day EMA ($186). Traders can keep the stops on 50% of long positions at $200 and the rest at $185, just below the 20-day EMA.
XRP/USD
The rally in XRP turned around from $0.23612 on April 30. However, the positive thing is that the bulls have successfully defended the breakout level of $0.20570. This suggests that the bulls are buying on dips.
XRP–USD daily chart. Source: Tradingview
If the price sustains above $0.20570, the bulls are likely to make another attempt to push XRP, which is the ranked third on CoinMarketCap, above $0.24560. If successful, a rally to the downtrend line at $0.28 is possible.
However, if the price turns down from $0.24560 once again, a few days of range-bound action is possible.
Therefore, traders can book partial profits on the long positions close to $0.24560 if the bulls struggle to break out of this resistance. The stops on the remaining positions can be kept at $0.19. A break below the 20-day EMA will shift the advantage in favor of the bears.
BCH/USD
Bitcoin Cash (BCH) rallied close to the overhead resistance of $280.47 on April 30 but could not break out of it. The altcoin turned down from $276.27. However, the positive thing is that the bulls are attempting to defend the previous resistance turned support of $250.
BCH–USD daily chart. Source: Tradingview
The bulls are likely to make another attempt to push the price above $280.47. If successful, BCH, the fifth largest cryptocurrency on CoinMarketCap, is likely to pick up momentum and rally towards $350.
However, if the bulls fail to propel the price above $280.47, a few more days of range-bound action is possible. Traders can trail the stops on the long positions to $230 because if this level breaks, a drop to $200 is possible.
BSV/USD
Bitcoin SV (BSV) turned down from the $227-$233.314 resistance zone on April 30. This shows that the bears are active at higher levels. However, the bounce off $201.17 on April 30 suggests that the bulls are buying on dips.
BSV–USD daily chart. Source: Tradingview
This suggests that BSV, the sixth-ranked cryptocurrency on CoinMarketCap, is likely to remain range-bound for a few more days.
A break above $233.314 will indicate that the bulls have overpowered the bears. Above this level, a rally to $268.842 is possible.
Conversely, if the bears sink the price below the support at $203.40 and the 20-day EMA ($195), a drop to $187.160 will be on the cards. Therefore, the stop-loss on the long positions can be trailed higher to $195.
LTC/USD
Litecoin (LTC) broke above the overhead resistance of $47.6551 on April 29 but could not build upon it. The altcoin turned around from $50.7864 on April 30 and dropped below the breakout level of $47.6551, which suggests that bears are selling aggressively at higher levels.
LTC–USD daily chart. Source: Tradingview
Nevertheless, the dip to $45.5444 on April 30 was purchased and the bulls will once again attempt to push the price above the $50.7864-$52.2767 resistance zone. If successful, a rally to $63.8769 is likely.
Conversely, if the bears again defend the overhead resistance zone, the seventh largest cryptocurrency by market cap might extend its stay inside the range for a few more days. For now, the stops on the long positions can be maintained at $42.
BNB/USD
Binance Coin (BNB) broke above the overhead resistance of $17.4775 on April 30 but the bulls could not sustain the breakout and the price again dipped back in. Currently, the bulls are again attempting to scale and sustain the price above $17.4775.
BNB–USD daily chart. Source: Tradingview
If successful, BNB, ranked eighth on CoinMarketCap, is likely to pick up momentum and rally to the next overhead level of $21.50.
With the 20-day EMA sloping up and the relative strength index sustaining above 60 level, the advantage is with the bulls. The first sign of weakness would be a break below the 20-day EMA ($15.90). Therefore, traders can trail the stop-loss on the long positions to $15.50.
EOS/USD
EOS rallied close to the overhead resistance of $3.1802 but failed to scale above it on April 29 and 30. Although the drop from this level broke below the breakout level of $2.8319, the price quickly rebounded.
EOS–USD daily chart. Source: Tradingview
This suggests that the bulls are attempting to defend the $2.8319 support level. If the bulls can carry the price above $3.1802, the uptrend is likely to resume. Above this level, the next target objective is $3.8811.
Conversely, if EOS, the ninth-ranked cryptocurrency on CoinMarketCap, turns down from $3.1802 once again, a few days of range-bound action is possible. Therefore, traders can book partial profits if the bulls struggle to break out of $3.1802 and keep the stop-loss on the rest of the long position at $2.50.
XTZ/USD
Tezos (XTZ) broke above the overhead resistance of $2.8969 on April 29 but the bears dragged it back below $2.7529 on April 30. This suggests that sellers are active at higher levels.
XTZ–USD daily chart. Source: Tradingview
However, with the 20-day EMA sloping up and the RSI trading near the overbought zone, the advantage is with the bulls.
Therefore, the bulls are likely to make another attempt to carry XTZ, which is ranked tenth on CoinMarketCap, above $2.8969-$3.0603 resistance zone. If successful, a rally to $3.2712 is likely. For now, the stop loss on the remaining long positions can be kept at $2.55.
XLM/USD
The bulls are facing stiff resistance at $0.073434 for the past two days. Though Stellar Lumens (XLM) turned down on April 30, the bulls stepped in to buy at $0.065546, which suggests demand at lower levels.
XLM–USD daily chart. Source: Tradingview
If the bulls push the price above $0.073434, a rally to $0.089238 is likely. This is likely to be a huge barrier to cross as the eleventh largest crypto-asset by market capitalization has turned down from this level thrice before (marked as ellipses on the chart).
Conversely, if the bulls fail to scale and sustain the price above $0.073434, a few days of range-bound action is possible. A break below the 20-day EMA ($0.059) will indicate that the trend has shifted in favor of the bears.
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.
