BTCUSD (Coinbase chart)
Source: tradingview.com
For the past week, Bitcoin had been more unstable and the bull run that started back in April had shown some signs of weakness. The price action retraced from the $8,300 area towards $6,600 on the Coinbase exchange, where it found support.
Since at the time of writing Bitcoin is again back on track, we suspect the buyers will manage to test the $8,500 key resistance area. Only a strong breakout above that zone could unlock further upside potential towards $10,000.
On the other hand, if sellers gain traction again, we could see a new attempt to break below the $6,800 key support. The bullish parabolic structure continues to unfold, despite the overbought conditions. Yet, the fact that we had the highest retracement this year occurring in the last week, communicates that we are on a very unstable ground at this point.
ETHUSD (Kraken chart)
Source: tradingview.com
The same parabolic structure can be spotted in the price of Ether, as it managed to reach a key resistance area a few days ago. A strong-term selloff emerged around $256, but not it seems like buyers are back in the game.
If the buyers will break and close above last week’s high, we suspect there’s more upside for Ether, as the price could edge higher towards the $320 resistance area. It will be a level not seen since mid-August 2018.
On the other hand, if the price action will become unstable again around $256, we could witness the beginning of a stronger pullback, which might lead Ether towards the $170 support area. Since the buyers managed to erase two-thirds of the losses we’ve seen on Friday, we could see a new 2019 high being made in the next few days. Still, as with Bitcoin, caution is advised at this point.
STRUSDT (Poloniex)
Source: tradingview.com
We’ve talked about the inverted head and shoulders pattern in the price of Stellar since a few weeks ago and the performance we’ve seen lately shows that the pattern had been confirmed. The neckline located around 13.7 cents had been broken and despite some choppy activity, buyers resumed impulsively around the daily 200 moving average.
Since the price action managed to break above the neckline + it made a new 2019 high, our assumption is that the bullish momentum will continue and Stellar is due to edge higher, with 17.2 cents and 19.3 cents as the next potential targets. The price action structure also begins to look parabolic, which might signal even more gains ahead.
On the other hand, a strong breakout back below the 200 moving average will negate our bullish view and might point to stronger losses, potentially heading towards the 9 cents area.
Briefings about ICOs
Until June 7th, VOLUM will continue to raise funds through the LAToken exchange, as it attempts to launch a blockchain-based platform which will maximize investment value and stability through its holding company structure.
In terms of upcoming ICOs, AllSesame is a decentralized social food network, powered by blockchain. Aimed at becoming the most socialized global food delivery marketplace, the project will start to raise funds on May 21st.
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