Top 5 Crypto Coins - Daily Overview for May 9
Bitcoin Cash in bullish momentum, XRP still struggling
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On Wednesday (0:01 UTC) Bitcoin (BTC) bounced off the trend line we have been seeing for a couple of days, which is a bullish sign. BTC ended the three-day bear move opening at USD 9180 and closing at USD 9322.
The New York Times reported that the New York Stock Exchange has been working on an online trading platform that would allow large investors to buy and hold Bitcoin. This confirms that Wall Street is becoming more fervent to the idea of investing in cryptocurrencies.
At press time, Bitcoin is trading at USD 9316 and we may say that until it passes USD 9475 it is quite possible for it to chop around and test once again the support zone near the trend line, so you should still keep an eye on that area.
Because there is still a lot of uncertainty about the direction Bitcoin is going, we do not see any attractive high risk-reward set ups for either way – long or short position. That’s why staying on the sideline may be the safest decision for the moment.
Do not forget that many times the best decision in trading, but also the hardest one to execute, is doing nothing.
On May 9 (23:59 UTC) Ethereum also managed to close in the green. The opening price was USD 747 and the closing USD 751, but most of the action during the day was around the support zone at around USD 710, testing it multiple times.
The good news for those with long positions is that the support held and ETH bounced back above USD 745, currently trading at USD 755. If the bulls continue to push the price higher we are about to see a run to the May 5 high of USD 838 once again.
If ETH breaks this week’s resistance, the target after that is a rally towards USD 1000, which we have not seen since the beginning of February.
On the downside, if Ethereum moves in the red it may test the support near the daily trend line and if the bears manage to push the price even further, the next support is sitting at around USD 630.
On Wednesday (UTC) XRP broke the support zone at around USD 0.81 by more than 5%, dropping to USD 0.759 – the lowest paid price for the day. After that it managed to recover to USD 0.815 but eventually closed down at USD 0.795.
At the time of writing, XRP is trading at USD 0.80 and still struggling to decide to go north or south from that zone. If Ripple closes below USD 0.80 the area will turn into stronger resistance and a dip to the levels around USD 0.76 and USD 0.70 will become more likely.
On the upside, in order to test the resistance at USD 0.93 once again, XRP should first make a strong move above USD 0.84.
Wednesday (UTC) was a really volatile day for Bitcoin Cash (BCH). It opened at USD 1591, fell down to USD 1466, rose back up to USD 1671 and eventually landed at USD 1621. What May 9 showed is that the support area around USD 1450 is able to hold the bears and at the moment of writing Bitcoin Cash is trading at USD 1660.
If it sustains above USD 1600 we may see a new run to this week’s high of USD 1849 very soon. If BCH breaks this area the road to USD 2000 should be clear.
On the downside, if Bitcoin Cash loses more than 15% of its value and breaks the support zone, a further dip to the USD 1280 area may be on the map. However, at least at this point, this does not seem like a very probable scenario.
May 9 (UTC) was the fourth red day in a row for Litecoin, opening at USD 158 and closing at USD 156. As those prices suggest there were hardly any big swings during the day – the highest and lowest trading prices for the day were USD 160 and USD 151.
At press time, Litecoin is trading USD 160 but in order to test the weekly high of USD 184.7 it has to rise above USD 168. If it drops under USD 153, the target is the major support around the USD 143 levels.
At this point, as long as the price continues moving sideways, we do not see a high probability trade, so once again staying on the bench and watching the game from there may be the more reasonable decision.
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