Top 5 Crypto Coins - Daily Overview for May 6

Bitcoin tests resistance levels, Ethereum in jitters over regulations

by Lyubo Zhechev
07 May • 6 min
In Markets

(The views and opinions expressed by our contributor(s) in this article should not be considered financial advice, neither treated as expression of Coins.Online’s view. Cryptocurrency trading and investing is risky and market participants are advised to always conduct a thorough research.)

 

BTC/USD

Bitcoin (BTC) has been going upwards over the past few days in a bullish breakout through resistance levels at USD 9200, USD 9500 and USD 9700. However, on Sunday the cryptocurrency failed to push through the USD 10 000 mark. Just as it did in its previous attempt on Saturday.

The opening price (0:01 UTC) on May 6 was around USD 9850, the closing (23:59 UTC) - at USD 9650 and the highest and lowest bids for the day were USD 9930 and USD 9450. At the time of writing, Bitcoin continues losing ground, currently trading at around USD 9350.

The bear scenario is that Bitcoin will test the support zone level of USD 8900 and it is still unclear if and when the coin could initiate a new rally into the USD 10 000 region.

 

In order to test the strong resistance zone at around USD 11 700, BTC should close above the 200-day moving average, which right now is at USD 10 076. The RSI (relative strength index) of Bitcoin on a daily basis is currently 56, signifying a neutral zone.

 

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However, looking at the one-hour chart of BTC we see that the RSI is 32 and the price of Bitcoin is trading below the 5-day and 10-day moving average, which may be a good short-term buy opportunity.

 

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ETH/USD

The past week was great for Ethereum (ETH), jumping 20%  to the price levels from early March. However, on May 6, after Bitcoin reversed its course and fell under USD 9500 most of the altcoins followed suit losing at least 5%.

Ethereum was no exception and on Sunday it dipped to a daily low of USD 755 from USD 826 at opening (UTC). The cryptocoin managed to recover to USD 793 at closing, but at the time of writing, it is trading again around USD 750.

The price is hovering around the 50% Fib retracement level of the last wave from a USD 664 low to USD 838 high. If it does not bounce back, the ETH will most likely continue dropping towards the USD 725-730 support zone, which is strong enough to hold and prevent the ETH price from a further correction.

 

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The major news this week that may affect the price of Ethereum in the near future is the expected discussion of cryptocurrency regulatory classification, and specifically ETH, by the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). According to the Wall Street Journal, regulators are examining whether it should be classified as a security, as set out in the Securities Act 1933.

If Ethereum is found to be a security, its price will suffer because the American exchanges have to be registered with the SEC in order to be trading a security and most of the crypto exchanges are not. Nevertheless, it seems unlikely that the regulators from the SEC or CFTC will make this conclusion in the case of Ethereum.

 

XRP/USD

On May 6 (UTC) Ripple (XRP) lost more than 5% of its value. The opening price was USD 0.90, the closing was USD 0.86 and the highest bid for the day was USD 0.917.

However, at the time of writing, XRP lost another 5% and it is currently trading at USD 0.82.

During the last hours it fell even as low as USD 0.80 and as we can clearly see from the one-hour chart it tested the support zone at around USD 0.81. For now, it seems that the support is holding but the short-term picture looks definitely bearish, as long as the price stays below USD 0.86.

Nevertheless, the RSI of XRP on the one-hour chart is under 30 which shows that the coin is oversold and may be a good short-term buy opportunity. In order to return to the weekly high of USD 0.93, the bulls have to break the mentioned resistance level at USD 0.86.

 

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BCH/USD

Bitcoin Cash (BCH) reached USD 1849 on Sunday after a strong bull run. The most probable reason behind the rise is the planned non-contentious hard fork on May 15. Nevertheless, in addition to the price increase, the RSI of BCH went above 75 and the coin faced a downside correction and declined below USD 1660 just a few hours later.

On Sunday, BCH managed to recover and the closing (UTC) price was around USD 1755. Currently, BCH is trading around USD 1630 which is more than a 10% drop from the May 6 high.

In the short-term, the price of BCH may face a healthy correction to the previous resistance zone which is now the support level at around USD 1560.

 

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LTC/USD

Even though there was no significant news about Litecoin (LTC) in the last couple of days, the week was a positive affair for LTC, gaining more than 25%. On Sunday the opening price (UTC) was around USD 180, the closing –  USD 171 and the highest and lowest bids for the day were USD 184 and USD 165.

At the time of writing the price moves around USD 165 testing the previous resistance zone which is the new support.

If the sell pressure increases and the price continues to go downwards we may expect some big buy orders at the 61.8% Fibonacci extension line which is around USD 159. The RSI of Litecoin on the four-hour chart is 49, signifying a neutral zone.

 

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