Crypto Frontline

BTCUSD (Coinbase)

Upside volatility in Bitcoin spiked last week after the price managed to go above the May 22nd high. Since then, we’ve seen the largest coin manage to reach several new all-time highs. Right now, the price is trading above $122k, but the move seems a bit stretched. 

We say that because the daily RSI is trading close to 80 and the price is far from the 20 EMA. Usually, the price trades closer to that moving average, which makes buying at this point suboptimal. 

Since we’re in uncharted territory again, traders should watch for price action clues around psychological areas. As long as the price keeps above the $120k support, the next levels of resistance above should be $125k and $130k. You can also use Fib extension levels if that’s what works for you better. 

If a pullback starts to unwind, the $120k is the first level to watch for renewed buying interest. Failure of that would mean BTC could retrace lower, probably towards $115k or $112k. On the broader picture, though, we are still in an uptrend. 

ETHUSD (Kraken)

As we had anticipated a week ago, Ether did manage to break above $2,700 and what followed was an impulsive move into $3,000. Congrats to those who managed to catch this move, since it was predictable. 

At the time of writing, ETH is trading a little above $3k and we think there could be some further upside to squeeze, if the broad market sentiment holds. In case BTC starts to consolidate, flows should favor altcoins, as investors and traders move capital towards cheaper crypto projects. 

This bullish parabolic structure in Ether points to more gains, even though pullbacks along the way will happen. We expect the leg up to extend towards $3,300, an important resistance zone. Pullbacks towards $2,800 should act as a buying opportunity, since that’s now a role reversal level (prior resistance, now support). 

Sustained selling below that area would mean the market wants to revisit $2,700, where it found resistance multiple times in the past. That shouldn’t be a surprise since the area also acts as a point of control. 

ADAUSD (Binance)

In tandem with Ether, Cardano also surged last week and it’s now threatening to break above the daily 200 SMA. That didn’t happen thus far, but buyers are clearly pressuring the price higher. 

What’s interesting to note is that the 52 cents support held successfully on 4 separate occasions, each time leading to impulsive moves higher. This is the 4th one and we think the move can extend towards 82 – 85 cents, which happens to be an important resistance zone. 

Traders shouldn’t rule out a break even higher, which will put the $1 mark under scrutiny. Overall, the sentiment is bullish and we expect more gains during the upcoming weeks and months. 

Only a breakout below 66 cents will negate our current bullish stance. That seems like a low probability scenario, at least based on current price action developments.