Throughout last two weeks, we have witnessed all that the market has to offer. Through cryptocurrency price chart analysis we saw rallies with great breakouts, we saw many “fakeouts”, a consolidation phase that formed strong support levels, increased volume and of course, the casual crash. Compared to last year, the rallies we saw looked calmer, but they were a breath of fresh air from the decline that was happening. Cryptocurrency prices remained volatile and will continue to be, but things are looking very optimistic.
A strong battle is waging between the bulls and the bears, as both sides are fighting for control and to establish themselves. As always we have to look at what news had influenced the prices, as cryptocurrency news is one of the biggest factors that influence the cryptocurrency price chart. Click here to read about The 10 biggest factors that influence the price charts.
News that influenced the cryptocurrency price charts
Last week, there was an investigation by South Korean Financial Supervisory Comission on the exchange Upbit. This news brought FUD (fear, uncertainty and doubt) with the South Korean cryptocurrency community, which probably participated in the following price decline. The South Korean cryptocurrency community is one of the biggest and most active on the cryptocurrency markets. Any FUD in South Korea can influence the prices in a big way. In other news, there was a Bitcoin liquidation by Mt. Gox executives in charge of refunding affected users by the exchange’s collapse.
Many financial institutions are planning to enter the cryptocurrency markets or to invest in blockchain technology. A lot of corporate capital will enter the cryptocurrency markets, which will most definitely raise cryptocurrency prices and the total market cap. For now, these changes can’t be felt on the price charts, but they will eventually rise. Many investment firms and researchers are predicting that this year all major cryptocurrencies will reach new highs.
Also, after Bitcoin futures were listed in December 2017, CME launched on Monday, two indexes that will track Ethereum. Though CME said that they have no plans on adding another product, a launch on Ethereum futures is highly possible and already speculated. Ethereum futures will offer institutions the opportunity to diversify their trading portfolio with the two best cryptocurrencies by market capitalization. The president of St. Louis Fed said that Bitcoin could emerge, in the future, as competitor to the United States dollar. Overall, the situation is starting to bright up, as the opinions towards cryptocurrency adoption are starting to become more and more positive.
Let’s take a look if there are any buy opportunities on the current dip. If it continues this way, long term investors should consider these dips as opportunities to buy crypto with discount.
Top 5 Cryptocurrencies by Trading Volume for the last 7 days
- Bicoin (BTC): $38 551 540 224
- Tether (USDT): $20 370 590 976
- Ethereum (ETH): $15 099 259 136
- EOS (EOS): $9 964 375 552
- Bitcoin Cash (BCH): $5 948 355 136
Bitcoin (BTC/USD) Price Chart Analysis
At the start of May, the whole cryptocurrency market, with some exceptions, was rallying up. In the first week of the month, Bitcoin reached the 10,000$ mark. Last time Bitcoin was at the 10,000$ mark was more than two months ago. The rally was great, but was short lived, as Bitcoin and the whole market gradually declined. Yesterday was the lowest point of the dip, as Bitcoin reached 8,000$. To reach the 8,000$ mark, Bitcoin broke through strong support levels at 8,900$ and 8,450$ after.
The 8,000$ support level is strong and should hold the selling. However, if this level breaks, it is highly likely that Bitcoin will reach the next support level at 7,000$, so I think the bulls will hold the position. Still, Bitcoin’s price chart looks like that it will consolidate between the 8,000$ and 8,900$ for now, so for now investors should wait and see how things will pan out. The charts are still unclear and until a clearer pattern shows, I suggest waiting for now.
A smart thing to do is to put your position far higher or far lower than your target position. A possible breakout to 7,000 could mean an opportunity to buy at the lows. The same applies to the opposite, if you have Bitcoin you can set your position to sell at 9,000$ or more and if the price spikes, even for a short time, you would have made the right position and possibly profit.
Ethereum (ETH) Price Chart Analysis
Ethereum was one of the winners, since the beginning of May. As you can see on the chart, Ethereum benefited from the rallies and raised it’s price to more than 830$. After that, volatility ensued and Ethereum’s price was ranging from 670$ to 770$. The 670$ support level is strong enough and should hold and stabilize the cryptocurrency, but it is possible for a fallout to the next strong support level at 600$.
Traders should only buy at the lower levels from 650$ to 730$ and sell above 800$. The resistance above 800$ is strong so I don’t advise any long positions on Ethereum for now, but for holders Ethereum looks like the most secure long position you can take with the most attractive percentage profits. The declining trend line for this week is forming a head and shoulders pattern. If it continues like this we should expect soon a breakout towards the 800$ mark.
Ripple (XRP) Price Chart Analysis
Ripple was one of the losers last two weeks, as the cryptocurrency’s price was slowly rising during the rallies and didn’t take full advantage of the hype. But Ripple was the first to take advantage of the dips, as the cryptocurrency sunk to the deeps and reached the 0.64$ mark. After that, Ripple made a short lived comeback to the 0.74$ mark, but quickly plunged back at 0.66$.
But taking a look at Ripple’s Ethereum price shows how far Ripple has fallen. Before the dips, Ripple was trading at 0.00138 Ethereum price. Currently it is trading at 0.00098 which is a lot in percentage wise. Traders should wait and see how Ripple’s price will evolve. This Ethereum price is more than great for trading and if you have some Ethereum, this may be a good opportunity. I expect Ripple to return soon to its normal Ethereum price at 0.0013.
Other Altcoins Price Chart Analysis
Bitcoin Cash was trending, last 2 weeks, as the cryptocurrency took the fifth place from Ripple for top cryptocurrencies by trading volume. Bitcoin Cash was rising even when most were falling and it will be interesting to see how things will pan out. BCH was trading at 800$ in 20th April but has risen to over 1,800$ last week. Bitcoin Cash and EOS are the two projects that we will be following close.EOS reached 23$ during the big rallies, which was the most interesting thing that happened. EOS’ volume has increased a lot and the interest towards EOS is booming.
Currently EOS consolidated back to below the 14$ mark and we will keep our eyes on the project, for sure. Another great project, IOTA is sadly following Ripple’s charts and has declined a lot in the past ten days. IOTA’s Ethereum price has fallen by around 30% which is scary for those that are trading with IOTA, but could mean that this is a great moment to stock up on IOTAs at a discount. Other honorable mentions are Stellar, TRON and Cardano. They are doing great and offer a lot of trading opportunities. For long term hold, all of the above mentioned projects are awesome and a great choice to hodl.
From all the corporate and institutional interest in cryptocurrencies, it looks like the stage is being prepared for them. These dips could be the opportunity institutions need to enter the market before it is too late or expensive. A lot is speculated, but a lot of news are coming up about institution wanting to adapt blockchain technology or to use cryptocurrencies. The Japanese Mitsubishi UFJ Financial Group is the fifth largest bank in the world by assets and they are looking into ways to launch their own cryptocurrency. It will be called MUFG Coin and it could launch next year.
If institutional and corporate capital enters the cryptocurrency markets, we will witness new heights this year. Some of the existing cryptocurrency leaders are preparing for possible institutional attempts to seize the market. Some projects have already introduced, others are developing new upgrades to improve the existing network. Also some cryptocurrency exchanges have started to offer new products that target institutional and corporate investors. Corporations have started to notice that cryptocurrencies and blockchain technology are changing the game.
So, what can the casual investor do about it, buy, hold or something else? Well, if large corporations want to enter the market, they will try to push the prices down first, buy at the lower levels and then rally the prices up. So most investors should consider these dips as Black Friday or discount day. Casual traders should diversify and split their purchases and not buy all at once to decrease the chances of regret.
If you want to read more on trading, learning to see trends and trading strategies, then click here to read our Cryptocurrency binary trading guide, where you can learn so much about reading cryptocurrency price chart and trends.
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- Ethereum hard forks Constantinople and St. Petersburg scheduled by the end of the week - Feb 25, 2019
- Ethereum founder and CEO, Vitalik Buterin revealed his non-Ether holdings and revenue sources - Feb 22, 2019
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