Top 5 Crypto Coins - Daily Overview for May 10
Cryptos lose their mojo in bearish pressure after a big chunk of Bitcoins was moved from Mt. Gox wallet
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On Thursday afternoon (16:01 UTC) bearish pressure started mounting on Bitcoin (BTC) and sent its price down to USD 9011 at closing from a daily high of USD 9393.
At press time, Bitcoin is trading even lower – at USD 8763 and right now is testing the bottom levels of the support zone around USD 8800 – USD 9000. The price dip is most likely a reaction of the market to the transfer of 8,214.97084 BTC from Mt. Gox cold wallets.
The transactions were sent to the address 1LncfoCX1yzuiW3hzejarvgZ1WahnAQ4o4 and right now the total amount is worth more than USD 76 million. It is unclear what will happen to those coins.
With that in mind, it is probably better to sit tight and see where things are headed.
Still, The RSI on the four-hour chart is below 27.8, which means that the coin is in the oversold area and if more buyers get back we may see another move to the resistance around USD 9750-10,000.
On the daily chart, as the larger time frame provides a more reliable indicator, we will see, however, that the RSI is at 46.9, which does not suggest that sellers are getting exhausted yet.
In line with the Bitcoin, Ethereum (ETH) price dropped from USD 751 at opening (00:01 UTC) to USD 722 at closing – to remain right above the daily uptrend line. However, at the moment of writing Ethereum is facing a sharp decline and is currently trading at USD 694.
It seems that the short-term trend is rolling over and if ETH closes below USD 695 the price could go down even further. The RSI on the four-hour chart is approaching the oversold area but at least for now it is not attractive enough to go heavily long.
On the daily chart, Ethereum is in a bearish outlook as the 12-day EMA is above the price bars indicating that the price could go deeper.
Ripple (XRP) is having a really hard time with a five-day losing streak. It opened on May 10 (00:01 UTC) at USD 0.79 and closed at USD 0.74. However, at press time XRP is changing hands around USD 0.67 and just a few hours ago it went down to USD 0.64, exploring new lows in May.
It seems that XRP found a support at USD 0.65 after the RSI went to 20 on the four-hour chart. At the moment of writing the RSI is still suggesting that XRP is oversold, sitting at 23. This may be a good set-up for a short-term long position with exit points around USD 0.75.
However, in order to get there, first, it has to clear the resistance at USD 0.70
On the downside, if the price continues to fall, XRP will most likely bounce back from the bottom levels at the support area – around USD 0.62 – 0.63.
On Thursday Bitcoin Cash (BCH) dropped more than USD 100 after opening (00:01 UTC) at USD 1624 and closing at USD 1519. BCH faced even sharper decline after losing another 10% of its value today and falling as low as USD 1336. It is now recovering a bit and trading at USD 1378, but we may say that it broke through the support area around USD 1450.
The next major support for Bitcoin Cash is sitting at USD 1280 and even though we suggested yesterday that it is very unlikely to reach this level, today it doesn’t seem so impossible.
However, we wouldn’t advise anyone to go short at this point because BCH already lost around 15% of its value in the last 36 hours, so it could bounce back anytime soon. In addition, the RSI on the four-hour is under 30, dipping into oversold territory to reflect selling exhaustion.
Litecoin (LTC) has been in a downtrend for days now. May 10 was the sixth red day in a row for LTC, opening (00:01 UTC) at USD 156 and closing at USD 148. Today Litecoin has even poorer performance and it is trading at USD 140, at press time. This is below the support at USD 143.
If Litecoin closes below this zone it is in danger of far more losses. The next major base is at around USD 125. Similarly, to all the other major altcoins, on the four-hour chart the RSI reading of LTC is under 30, suggesting that the price could rise in the short-term.
The most important resistance that has to be broken from the bulls right now is at USD 151, which was support two days ago.
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