Ticker tape by TradingView

May 24, 2021

Crypto Forecast (Week of 5/24/2021)

Frank Cabibi

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

FLASH SALE
Take 40% off the Edge finder using code "READER"
GET ACCESS NOW

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
A1 Trading Podcast
How These Factors Will Impact Oil Now

Oil prices have surged this year and have recently pulled back from the highs. However, there are some factors right now that will heavily influence the price of commodities in the long term. And it's important that we go over them so when the time comes, we'll have a better understanding of how to trade […]

Read More
We Like These Pairs For Next Week

As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]

Read More
More Downside On The SPX500 After This?

When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]

Read More
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
homescreensmartphone linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram