After a wild week of crypto trading last week, let's cover where these decentralized currencies stand right now and whether or not they will be able to recover from the heavy sell off that shaved trillions off the crypto market cap.
Recent News
What seemed to have started with Tesla founder, Elon Musk, tweeting about discontinuing the use of bitcoin transactions until they figured out a way to reduce energy consumption, bitcoin and the rest of the crypto market tanked. On top of this, China also announced that they banned crypto transactions and mining, where about 70% of mining occurs in China. So, that was obviously some bad news for the global crypto market. An Ethereum co-founder also seems to be against his own market by saying the crypto market is in a bubble as well as expressing his hatred for Dogecoin. Last week was a span of bearish news overall for altcoins, but this week seems to have taken a break from all of the bearish sentiment.
Trade Setups
Bitcoin
BTC/USD 4H
After bitcoin dropped over 50% last week, price seemed to have found support in the $29-30K range which used to serve as a bottom from back in January of this year. On this 4H timeframe, a downtrend looks very clear, and a falling channel is marked within the two black lines. Right now, price is testing the channel highs with the previous 4H candle showing signs of topping out. If price can stay above the channel, it might be able find further upside during the week. If not, bitcoin can find support back in the $29-30K range.
DOGE/USD
DOGE/USD 4H
From joke to legend amongst the meme and trading community, dogecoin surpassed a handful of publicly traded US companies by market cap before tumbling with the rest of crypto. Now the pair is in a similar down trend channel like bitcoin, but seems to be trying to near the top trend line once again as price consolidates in the low $0.30s. Doge also made a higher low on this 4H timeframe which could be a signal of the start of a reversal to the upside.
ETH/USD
ETH/USD 1D
Taking a look at he 1D chart for Ethereum, price came real close to its 200 DMA before turning to the upside. ETH is currently above support around $1990-2040 range and is up about 21% for the day. Around $2641 looks like some more resistance since previous highs hit that level twice before breaking above. That looks like a major level to break now, and a close above would suggest a higher low on the daily chart.
A1 Edgefinder
Watchlist
Save time looking for setups with the EdgeFinder's watchlist! In a glance, see the EdgeFinder's current top buys and top sells.
Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]
The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]
Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here