Top 5 Crypto Coins - May 14
Upbeat weekend for the main digital coins, but still not near May 10 highs
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During the weekend Bitcoin (BTC) recovered a little after on Friday the bears had the upper hand and the price fell almost 7%. On Sunday BTC closed at USD 8680 (00:01 UTC) and reached the bottom of the previous support zone which is now turning into resistance, after it was down to USD 8401 at closing (23:59 UTC) from USD 9012 at the Friday opening.
However, the week is not starting very well for Bitcoin, because at press time it is changing hands around USD 8380. At this point the question is if and when will the price make a significant move towards USD 10 000. One of the best indicators to use in order to figure out if the price has bottomed out is the volume. Usually when it spikes it means that the bulls are back.
On the four-hour chart on Bitfinex, we see that right now this is not the case. The next strong support zone for Bitcoin is at USD 8140 – USD 7850. As the RSI is turning down, approaching the oversold area, if the price dips even more these levels can be used as a possible buy zone for short-term gains.
In order to rise once again, BTC should break the short-term bearish trend line with resistance at USD 8900.
Ethereum (ETH) saw a sharp decline during the past week, falling from USD 818 at opening (00:01 UTC) on May 6 down to USD 637 – the lowest trading price on Saturday. ETH held the support around USD 635 and the price climbed up to USD 728 at closing on Sunday, pushing the price above the resistance area at USD 700 – 705.
At the moment of writing, ETH is trading around the 38.2% Fib retracement level of the last wave from the USD 637 low to USD 740 high, which is USD 700. There is a short-term bull trend that is forming and as long as the price stays above USD 700 it may recover further.
On the downside, if ETH breaks through this uptrend line it could reach the 61.8% Fib retracement level at USD 677 and even test the support around USD 635 once again.
At this point, considering the low volume and the neutral RSI index, it would probably be better to wait for a strong follow though buying interest.
It was a tough week for Ripple (XRP) as it lost 30% of its value. On May 6 (00:01 UTC) XRP opened at USD 0.90 and fell to as low as USD 0.63 on Saturday. On May 13 it managed to recover closing at USD 0.725 with highest paid price for the day USD 0.745.
As I suggested on Friday it was a good short-term set-up to open a position at USD 0.65 with exit points around USD 0.75. At press time, the price of XRP is moving side-ways and it is currently trading at USD 0.70.
As long as the price is right in the middle between the resistance at USD 0.80 and the support at USD 0.65, it is better to wait for a break through one of these levels.
During the weekend Bitcoin Cash (BCH) tested the support at USD 1280 after it broke the previous one at USD 1450 on Friday. Because this base is a lot stronger BCH bounced back from USD 1263 – the lowest traded price on Saturday and closed at USD 1476 on Sunday.
However, the previous support is now acting as a resistance, which BCH is struggling to break. At the moment of writing the coin is changing hands at USD 1375.
As with ripple, at this point probably the smarter decision is to wait and see which will break first – the resistance at USD 1500 or the support at USD 1280.
On the upside, if BCH breaks USD 1500 the next obstacle is USD 1650 and the bigger one at USD 1800 after that.
On the downside, if the retest of the current support is successful the next base is sitting around USD 1150.
After seven consecutive bullish days, during the weekend Litecoin (LTC) saw some green. LTC broke the support at USD 145 on Friday and it is now resistance, which Litecoin couldn’t break on Sunday, closing at USD 144.
At press time, LTC is trading at USD 136 and as long as it stays below this level It remains at a risk of more losses.
On the downside, the support at USD 131 which Litecoin found on Saturday is short-term and if the bears break it the base is sitting at USD 125.
On the upside, if LTC manages to close above USD 145 a climb to USD 160 is likely.
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