Crypto Frontline

Weekly Crypto Analysis May 18-24, 2020

Weekly Crypto Analysis May 18-24, 2020
May 17
13:51 2020

BTCUSD Coinbase

BTCUSD technical analysis
Source: tradingview.com

Following the halving, Bitcoin had remained positive and currently, the price action is pointing towards a new retest of the key $10,000 area. Looking at the bigger picture, we can notice a cup-and-handle” type pattern, which communicates the order flow had not changed and the bulls are heavily in control.

Based on the current condition, we expect $10,000 to be tested and a breakout above it to be very likely. In that case, we suspect more gains towards $10,500 or $11,000 will follow. We should stick with the upside until a major change will happen and that’s not the case right now.

If selling resumes, the 4h chart 200 moving average and the $8,200 support area are expected to be packed with buying orders. A breakout below that zone will turn the sentiment towards the bearish side and the $7,500 area will be exposed. Keep in mind this is the less likely scenario right now, as the buyers are pushing the price up, even during the weekend.

ETHUSD Kraken

ETHUSD technical analysis
Source: tradingview.com

Bitcoin is having a major positive influence on the broad market and Ether is not excluded. As we’ve anticipated in our last weekly crypto analysis, the price did not break the price channel on the downside and just a few hours ago went above the structure, communicating the impulsive buying continues.

As long as the price action remains above the channel, the momentum will continue to be strong and Ether should retest the $227 area, where it started to weaken back on April 30th. If that will be the case, we believe more upside potential lies ahead, with the $250 area as the next major resistance.

Only a break back inside the channel will show sellers regaining control and they should keep it that way to take the price back towards the 4h chart 200 moving average. It acted as support last week, which is why we expect buyers to rejoin again if it would be the case.

STRUSDT Poloniex

STRUSDT technical analysis
Source: tradingview.com

We’ve covered Stellar in March and at that time we’ve mentioned that an exhausted selling might have occurred, which will be bullish for the token price. That’s exactly what happened and up until now, the price gained more than 100% in value, with potentially more upside ahead in the near time.

Since 2019 we’ve highlighted a well-defined range formed by the areas around 9 cents and 5 cents, which continues to be in play. Considering the price is moving up inside the range, we believe Stellar can get back to the 9 cents area, where it could find major resistance.

Along the way, weakness could show up, but the 4h chart 200 moving average and the bottom area of the range are expected to act as support. Remember that as long as the price remains inside the structure, a retest of the upside areas is the most likely scenario. Bulls are favored by the broad positive market mood and we believe the coin has more room to go on the upside.

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