Crypto Frontline

Weekly Crypto Analysis May 23-29, 2022

Weekly Crypto Analysis May 23-29, 2022
May 23
14:04 2022

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

Sellers have taken a break following an impulsive selloff and as we can see from the chart, the price action has been consolidating in a symmetrical triangle formation. At the time of writing, the buyers seem to be improving their stance, given the price is narrowly trading above the structure.

The sentiment seems to be improving at the start of the week, given the US Dollar is weaker and stock markets are pushing up. It remains to be seen whether buyers can build stronger momentum in the following days and if that will be the case, you should watch how the price reacts to several key areas like $32k, $35k, and the 4h chart 200 SMA.

On the downside, a break below the triangle could expose $28k and then the lows near $25k. The May 12th lows seem secure for now and we expect buyers to lead the market this week, in case risk aversion won’t return once again. Don’t mistake this with the beginning of a major bull run, since that could be far away. Still, conditions are heavily oversold, making a bounce very likely.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

Buyers have been active in Ether as well, where can see another bottom shaping up. In the short-term, at least, the token can bank more gains, but keep an eye on how the price will perform around $2.3k – $2.5k. That was key support and now it could act as resistance.

Like BTC, ETH has been subject to vicious selling, so it should not be a surprise if the price moves up this week, mainly because the sentiment is so bearish. In a bear market, you often get these vicious rallies whipping up sellers.

Some long-term investors might be attracted by the cheaper valuations, given Ethereum updates will come later this year and the blockchain will be more efficient, but at the same time, you should keep track of the broad market sentiment.

If downside pressure resumes, watch if the $1.8k support holds again. Breaching that will offer more selling space towards $1.5k. The impulsive selling more than a week ago might be a capitulation, so we suspect a bounce comes naturally at this stage.

BNBUSD (Binance)

BNBUSD technical analysis

Source: TradingView

Binance Coin is leading the charge higher and its price is now staging an impulsive pullback. Still, the buyers need to overcome the resistance around $324 and $340, but once that’s cleared, we could see the move extending towards $440, where another offer zone is located.

This is one of the leading exchanges and when its token appreciates, that’s a sign capital is pouring back into the crypto market. We see a pin bar on the daily chart, so the bullish fundamentals are backed by technicals.

Only if BNB breaks below $200 and buyers have no reaction, then it would be very bad news not just for this token, but for the broad market.  Same as with the other two tokens analyzed, we favor bulls more than bears during this week.


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