Top 5 Crypto Coins - Daily Overview for May 7
FUD fails to disrupt Bitcoin price, bullish signs for Ethereum
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Over the last couple of days, а lot of FUD was generated from billionaires Warren Buffett, Charlie Munger, and Bill Gates around Bitcoin (BTC) with no significant effect on the price of the biggest crypto asset.
Bill Gates said that “he would short BTC if there was an easy way to do it,” in an interview for CNBC, Buffett called Bitcoin “rat poison squared,” while Munger said that trading cryptocurrencies is akin to having “dementia.”
These were some of the reasons why Bitcoin price fell on Monday by more than USD 450 from USD 9644 at opening (0:01 UTC) to USD 9182 – the lowest paid price. BTC tested the support, created by the trendline up from the peak in early March (USD 11 500), touching also April 24 and April 28 highs (USD 9700 and USD 9500), but did not break it.
The zone around USD 8930–USD 9330 has proved to be a really strong support and resistance area over the last few months. This is a good indicator that it will remain stable, which means that in the short-term we have a powerful bullish sign that the price of Bitcoin would not break through these levels, just as it held on May 7.
On the downside, the four-hour chart shows that we still have a lot of open space underneath the trendline which means that there is still huge vulnerability. For anyone who is considering entering a long position, we recommend to watch closely the support zone.
If there is a strong move towards USD 10 000, you could go long because once this resistance is broken, the target is USD 12 000. If the support does not hold, BTC may drop to USD 8500.
It has been a few weeks since Ethereum broke the downtrend line and only five days since it broke the resistance at about USD 710. However, concerns that the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) will discuss whether Ethereum could be classified as a security affected the price of ETH.
On Monday it fell from USD 790 at opening (UTC) to a daily low of USD 685 –– and tested the previous resistance area at around USD 710, which is now support. Fortunately, for everyone who has long positions, the support held strong and at the moment of writing, ETH is trading at around USD 770.
This is a bullish sign for Ethereum. In addition, RSI is turning higher without hitting oversold conditions. This suggests that bulls may try to push the price above the resistance at USD 830. If they do that – a move towards the target objective of USD 1130 is likely.
Monday (UTC) Ripple (XRP) lost more than 7% of its value. It dropped from USD 0.86 at opening to USD 0.796 – the lowest paid price for the day.
However, the support zone at about USD 0.81 is holding for now and at the time of writing, XRP is trading at USD 0.84. If the bulls do not manage to break the resistance at USD 0.86 and the price continues to consolidate, it is likely to drop beyond UDS 0.80.
This will be a big bearish sign for XRP because the next major support zone is around USD 0.73.
On Monday, the price of Bitcoin Cash (BCH) dropped from USD 1755 – the opening price (UTC) – to USD 1560 – the lowest paid price for the day. Just as we suggested in our previous analysis on May 6 – BCH faced a healthy correction to the previous resistance zone, which is now support.
The coin managed to bounce back to a closing price of USD 1650 (23:59 UTC) on May 7. At the time of writing it continues to rise, currently trading at USD 1685. If the support stays strong the bulls may test once again the resistance zone at USD 1800.
Once they manage to break it – the target is the USD 2000 mark which has not been reached since January.
As the rest of the major altcoins, Litecoin (LTC) also was dropping on Monday. The crypto trade jitters were sparked by concerns regarding US regulatory stand on Ethereum.
Litecoin fell from USD 172 at opening to USD 158 – the lowest traded price for the day – and then came back to close at USD 166. However, looking at the four-hour chart, we can easily see that LTC is in a clearly defined uptrend.
Each low is higher than the previous one, which is a sign that every drop in the market is bought up pushing the price even further. Right now Litecoin is trading around its last support zone and if the bears cannot break it in the next several hours, this may be a good buy opportunity.
If LTC stays on the bull path we may see trading prices above USD 210 very soon. The RSI reading of 52 on the four-hour chart also supports the strong bullish momentum.
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