Top 5 Crypto Coins - Daily Overview for May 8
Bitcoin flirting with support level, short-term trading tip for XRP
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On Tuesday (0:01 UTC) Bitcoin (BTC) opened at USD 9365 and flirted with the support throughout the day. The support level created by the trend line is shown on the chart below.
As we pointed out yesterday, if BTC price bounces back from the trend line that touches March and April highs, it is likely to start its journey to USD 12 000 once again. If it does nоt, we may see a short-term dip.
On May 8 the price of Bitcoin managed to pass through the trend line but eventually closed above it at USD 9178, which was a good sign for the bulls. However, at the moment of writing, BTC is trading below the trend line at about USD 9025.
We would suggest to watch closely the support area, marked in green, and to see where the price of Bitcoin will be in the next several hours. If it goes above USD 9300 once again, you may want to fasten your seatbelts.
If it continues to drop we may see a good short-term opportunity to go long because it will get to the bottom of the support area at about USD 8850, which has so far proved that it can hold strong.
In addition, the RSI is turning lower and it is currently at 32 on the four-hour chart, approaching the oversold area. However, on the daily chart it is still at 51, which signifies a neutral zone, so, if you want to minimize your risk before making a buy order, wait to drop even further on the daily chart.
Do not forget that the bigger the time frame is, the more effective the indicators are.
If the price of Bitcoin breaks the bottom of the support at USD 8850, it is likely to head to the next support at around USD 8400.
There is not a lot to be said about Ethereum over the long term, because right now all the action is pretty much pending on the news whether Ethereum (ETH) will be classified as a security or not.
On Tuesday (UTC) ETH price could not hold above USD 750 which was its opening price and closed at USD 745 (23:59 UTC). At the moment of writing ETH is trading at USD 722 and as long as the price stays above USD 720 the intraday trend will remain bullish.
Today we expect Ethereum to test its previous resistance zone around USD 710, which is now support and if it closes above it we may see an attempt to break the resistance at USD 832 in the next couple of days.
If it fails, it might be on the road to USD 610-630 which is the next support.
On Tuesday (UTC) Ripple (XRP) tested the support zone at about USD 0.81 and eventually closed at USD 0.805. However, at the moment of writing the bears seem to have taken over because the price broke the support and it is now trading at USD 0.76.
The RSI is turning lower and on the four-hour chart it is at 30.7, reaching the oversold area, so we may see a good short-term buying opportunity.
After breaking a strong support level the coin price usually rebounds to previous support, which becomes the new resistance level, before making any other significant move in both directions.
If XRP price continues falling to USD 0.70, USD 0.65 or even USD 0.60, it could recover to its previous support at around USD 0.80 for a short period of time which could potentially present a 10% profit opportunity.
On Tuesday (UTC) Bitcoin Cash (BTC) dropped by USD 130 after opening at USD 1680 and reaching a daily low of USD 1550. BCH slightly recovered after the dip and closed at USD 1600. However, at the moment of writing, its price is about USD 1500 and just a couple of hours earlier BCH was trading around USD 1460.
The support at these levels looks strong for now but obviously the pair is under pressure because it broke the previous support at USD 1600.
We would have to wait and see if the price will bounce off the support zone at around USD 1460 or if it will continue dipping.
Litecoin (LTC) was trading in the red for a third day in a row on Tuesday opening at USD 164 and closing at USD 159. At the time of writing, the price of LTC continues falling and the coin is currently trading at USD 154. It looks like a near-term bearish trend will form if Litecoin does not manage to close above USD 160.
If the base line holds as support, we might want to buy, whereas a close below the base line would lead to testing the next major support at around USD 144 and potentially open up deeper lows