The crypto market has witnessed a spurt in buying activities last week, with all the leading cryptocurrencies showing strong gains. But as the weekend approached, the market lost most of its momentum and scaled back to its previous levels.
But, one of the strong points of the past week is that the market is continuing to witness strong volumes, almost three times the average daily volume it has been receiving for the last few months.
Last week was also important as the 45-day countdown has started for SEC to come to decision on two Bitcoin ETFs, which is likely to be the next big event, which could make or break the market.
Moving forward, here is the technical analysis of the top 5 leading cryptocurrencies.
Bitcoin was able to reach past the $4,000 level but stayed there for a very little time, as it lost momentum to continue higher or stay around that level. Currently, it has now pulled back towards the $3,800 level, an important support level for a long time.
The 50 Day EMA is now providing strong support to the market and $4,000 above will be massively resistive. Because of this, I think, the market in the coming days will consolidate between the $3,800 and $4,000 level. If it breaks above, the $4,000 level again then it needs to simultaneously break the $4,200 level, in order to sustain the bullish rally.
Ethereum was the star performer of the week, with gains close to 15 per cent and breaking above the $150 level. But, now it has retraced back to the $140 level.
In the short term, the pair will continue to gain momentum as 20 Day EMA has broken above the 50 Day EMA, which is a bullish development. Going by Stochastic, there would be a bit of weakness in the market but not likely to sustain very long.
If it manages to break above the massively resistive $150 level again in the next few sessions, then we can witness a lot of buying pressure in the market that could send the pair towards the $200 level.
Ripple had managed to break above the massively resistive $0.3180 level last week, but as it reached its next resistance at $0.3370 level, it lost the momentum and broken down to the $0.3080 level. Also, it has broken below the 50 and 20 Day EMA at once, which is quite negative for the pair. I think, now Ripple will consolidate between the $0.2890 and $0.31820 level in the short to medium.
In the last week, Litecoin had broken above the $50 level, but the recent pullback caused it to retract back to the previous level of $40s. The 50 Day EMA is offering strong support to market and is supporting the LTC/USD pair to reach higher. The next short term resistance is placed at $47 level and if it could breach this, then it can attract buyers back to the market and could send the pair much higher.
Bitcoin Cash was back to life once again last week, after weeks of sideways and lull movement. The pair gained almost 25 per cent or $30, reaching towards the $150 level. But, now it has retracted back and currently trading at the $130 level. I think the weakness in the pair (BCH/USD) will continue and follow the broad trends of the market.
If it breaks above the $140 level again, then some amount of buying can happen but will continue to struggle to gain momentum.
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