BTCUSD (Coinbase)
Source: tradingview.com
For the past week, the Bitcoin price consolidated in a triangle-type formation, a sign of strength, considering that the consolidation follows a very impulsive move. Sellers had not been able so far to take control over the order flow, which makes a breakout on the upside the most likely scenario.
If that will materialize, the next likely target for Bitcoin is located around $8,500, which is where a July 2018 swing high is located. Above it, the $9,000 psychological area is next on the table.
On the other hand, a breakout below the triangle formation will suggest sellers regained strength and the price action could weaken towards $7,400, or $6,800, where two significant support areas are located. Despite an above-expectations performance, we still believe Bitcoin is poised for a stronger setback, which makes buying at the present level unsuitable.
ETHUSD (Kraken)
Source: tradingview.com
Same as Bitcoin, Ether is also consolidating in a triangle, as the correlation between the two large-cap tokens continues in 2019. Ether stalled around the $280 area on the Kraken exchange, and since then the rally stalled. As with Bitcoin, the direction of the breakout is very likely to dictate whether the trend is poised to continue higher or fade.
Some choppy activity is not excluded as well, considering that triangle formations are generally very unstable and liquidity in the cryptocurrency market pales in comparison to the stock or forex market.
In case of an upward breakout, there could more room towards the $300 or $325 resistance levels. On the other hand, if sellers will push the price action below the triangle, $206 and $190, represent two key support levels where buyers might want to rejoin the bullish trend. The 4h chart 200 moving average is also an important level to watch for buyers.
TRXUSD (Bitfinex)
Source: tradingview.com
Several weeks ago, we’ve talked about Tron and how it was consolidating in a relatively big range between 2.13 cents and 3.08 cents. Even though the buyers did not manage to drive the price outside the range and keep it there, they still managed to break above the April 2019 high, before the price returned inside the range.
Second of all, we see several higher lows on the bottom, which communicates buyers are entering the market at higher levels. The selling had been contained above the 4h chart 200 moving average, which makes a breakout higher and continuation towards 3.58 resistance level the most likely scenario.
Tron had been an underperformer so far this year and if the large-cap cryptocurrencies that banked strong gains will begin to weaken, we could see other important tokens like Tron starting to pick up steam.
If buyers will fail to drive the price above the range and selling will resume impulsively, a return towards the bottom of the range will follow then.
Briefings about ICOs
TerraGreen is an IEO that has 4 days left and it is a project about bringing reform in the existing energy supply structure and transition to a new energy system through the use of the blockchain technology. It aims to fundamentally reduce GHG emissions and mitigate waste pollution.
KardiaChain is another interesting upcoming ICO that will start to raise funds on June 1st, aiming to build a blockchain platform for decentralized applications helping to create a blockchain ecosystem that allows for scaling and connecting disparate blockchains.
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