Crypto Frontline

Weekly Crypto Analysis May 31st – June 6th, 2021

Weekly Crypto Analysis May 31st – June 6th, 2021
May 30
13:36 2021

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

Bitcoin volatility continued to compress during the past week as the price is now trading inside a symmetrical triangle formation. There is still indecision in terms of the domination direction, which should keep both buyers and sellers more cautious over the next several days.

The first clue for an improvement for bulls would be a short-term breakout above the 1h chart 200 SMA. That will leave the upper line of the triangle as the only resistance level in the face of a stronger recovery on the upside. $42,000 and $47,000 are two of the areas to watch in case sentiment will start to improve.

If Bitcoin breaks below $33,000, that will be an early sign of weakness that could push the price towards the $30,000 area, where it found support on May 19th. The bottoming formation takes a long time to build, as it is usually happening, and the only thing left is to monitor subtle price action details to figure out who’s gaining control over the order flow.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

Few things had changed on the ETH front, especially since the selloff had been very violent in this case. The buyers had managed to push the price above the 4h chart 20 EMA, but selling resumed and now Ether is trading around $2,400. There is a well-defined short-term range in play, between the $2,000 and $3,000 areas.

Buyers looking to get long should wait until the price reaches the lower side of the range since that’s where strong support is expected to emerge. The RSI is undecided for now but did not reach overbought conditions since the beginning of May.

A continuation lower would occur only if the May lows are breached. In that case, the price could continue weakening towards the $1,500 area, where support can be spotted at the end of March, this year.

We believe this is the less-likely scenario, given the selloff put ETH in oversold conditions on lower time frames, and more balanced levels on higher ones.

ADAUSD (Binance)

ADAUSD technical analysis

Source: TradingView

Cardano is among the best-performing altcoins today, up over 16%, which could mean the buying momentum could extend well into next week. Although the price breached short-term below a key support area we’ve talked about in the past, buyers seem to be rejoining aggressively.

This is a cryptocurrency growing in popularity, especially as investors are shifting towards projects that are friendly with the environment. We remain bullish on ADA in the short-term and expect it to edge higher towards $2 once again.

Only if the price break below the highlighted role reversal level and treats it as resistance, should a change in the dominant order flow occur. That had not been the case and the exact opposite is happening.

Buyers are buying Cardano aggressively, which means the bullish trend could not be on hold yet. The key challenge in the day ahead would be to keep the price above the 4h chart 200 SMA. That will give the green light for more buying, especially if Bitcoin and the rest of the market continue to recover.

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