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The market data is provided by the HitBTC exchange.
Dan Morehead, CEO of cryptocurrency hedge fund Pantera Capital believes that the total cryptocurrency market capitalization can reach $40 trillion in about a decade. The current market cap is at $421 billion.
Morehead reiterated his bullish call on Bitcoin, calling it a ‘screaming buy’ at the current levels.
A similar opinion was voiced by John Pfeffer, a partner at UK-based Pfeffer Capital who recommended Bitcoin as a great investment opportunity at the Sohn investment conference in New York. According to him, Bitcoin could replace gold or become the new reserve currency of the world. This can result in its price skyrocketing to $700,000.
On the other end of the spectrum is the former head of Paypal, Bill Harris, who believes that Bitcoin is a fraud and should not be worth billions.
The bear market in cryptocurrencies has affected its trading volume. The average daily traded volumes have plunged from a high of $17 billion in December to a low of $7.4 billion in the first half of April.
This shows that the market participants have been hurt by the sharp decline in prices and many are yet to return to trading. Nevertheless, there is a hope that the entry of institutional players will make up for the loss in retail trading volume.
After breaking below the trendline, Bitcoin found buying support at the 20-day EMA. If the bounce breaks out of the trendline, the bulls will make another attempt to rally to $10,000 levels. Our recommended long position is still live as the digital currency has not hit our stop loss at breakeven.
If the bears defend the trendline, the BTC/USD pair will turn down and probably break below the 20-day EMA. On any decline, the $8,000 levels will act as key support. If this breaks, a retest of the $6,800 levels is possible.
We shall get a better picture in a couple of days. Until then, hold the position with the stops at breakeven.
Ethereum has held the trendline support. It is currently attempting to move up to the overhead resistance of $745.
If the bulls succeed in breaking out of the resistance, the ETH/USD pair should quickly rally to $900. If we get an opportunity, we might suggest a long position above $745.
However, if the recovery again falters close to the overhead resistance, the virtual currency can consolidate between $600-$745 for a few days. If the resolution happens to the upside, the recovery will continue, else we may see the digital currency decline to $500 levels once again.
The traders are buying Bitcoin Cash close to the $1,200 mark. We currently don’t own any position in the cryptocurrency, as we have booked complete profits on all our position.
The BCH/USD pair will try to break out of $1,600 levels once again. If successful, the up move should extend to $1,800 and $2,000 levels.
If the bulls fail to scale above the overhead resistance, the cryptocurrency can become range bound between $1,200 and $1,600 for a few days.
We shall wait for a reliable buy setup to form before recommending any trade.
Ripple broke below the trendline but held the 20-day EMA. It is again attempting to climb above the trendline and move towards $0.93777. If successful, the possibility of a breakout and rally to $1.08 levels increase.
The bears will offer a strong resistance at the trendline. If the XRP/USD pair fails to scale above the trendline, it will indicate a lack of buying support. Under these circumstances, the digital currency can break below the 20-day EMA and fall towards the 50-day SMA.
We don’t find a reliable buy setup on it, hence, are not recommending any long positions.
Stellar dipped back below the range on April 25 but found strong buying support at the 20-day EMA, which has again propelled it back above the overhead resistance of $0.4.
The next target on the upside is a move to $0.45 and above that to $0.47 levels. The XLM/USD pair is forming a rounding bottom pattern, which will complete on a break out above $0.48. This has a pattern target of $0.78 with minor resistance at $0.63 and $0.66.
If prices fail to breakout above the overhead resistance, we may get a small dip, forming a cup and handle formation.
As these are only possibilities, we shall wait for a clear picture to emerge before proposing any new trades.
Our recommended position in Litecoin is currently in a loss. We had expected it to race higher on breaking out of $160, but after breaking out of the overhead resistance on April 24, it again slumped back.
The good thing is that the LTC/USD pair is finding buying support at the downtrend line and the moving averages are on the verge of a bullish crossover. The price is attempting to bounce off the strong support levels….