This week more than most brings some joy to the heart with the price of Bitcoin crossing a psychological price mark of $6,000. One could say we it is a mark of entering into core bull territory. That would be one way to see it if you didn’t consider the market movements over the past couple of weeks. Let’s take a look at what played out in the market this week.
Bitcoin has maintained its current bullish dominance throughout the week making consistently higher highs without breaks.
This week Bitcoin broke a major psychological price mark, $6000 reaching a new high of $6450, with an increased market cap of $111.74b while supply maintained above 17.6m based on data from coincap. According to a report, $208B is being exchanged every 24 hours. These fundamentals show a clear massive demand dominance structure with the massive liquidity to clear short circulating supply marking a strong demand. These fundamentals have consistently voided every technical analysis suggesting a fall in price. Hence, this bullish sentiment is likely to last longer than expected as we had stated in our analysis of last week.
The advice is to make your entry on the retracement to the demand zone on a lower time frame say a one-hour time frame.
XRP’s price has consistently rebound off the demand zone at $0.29450 on the daily time frame. It retested the demand zone and rallied again. This proves that there is a clear demand in control and bullish sentiment at that level. If price closes above the closest supply zone at $0.32 we expect a strong rally in price.
The market sentiment of XRP is currently bullish but the bears are active and the bulls are not in enough numbers to drive the price. Though we expect an uprise as more buyers step into the market as the price momentum has been maintained above $0.27250.
From a technical analysis of the daily time frame, Litecoin has regained its bullish trend today the 10th of May after days of its pullback and retesting the demand zone at $73. The daily time frame chart reflects a clearly defined strong uptrend as the price rallied off our dynamic demand zone at $69. The price action of Litecoin met all of the previous week’s speculations. Hence, as the price has currently retested this demand zone. At $73 we expect the bullish trend to continue. Moreso, with a bullish sentiment we are expecting to go long and take some profits at a $100 psychological mark.
Etherum has maintained its bullish momentum in lieu with Bitcoin.
The price action of Etherum has played out as expected based on last week’s technical analysis. The penultimate week we envisaged a price drop to our demand zone of interest which is between $144-$146. This week ethereum followed suit with bearish price movement. On Sunday the price of Ethereum reached our demand zone of interest that is at $144-$146 and rallied off. Etherum is currently making a rally in tandem with bitcoin with respect to its correlation coefficient record, hence a bullish sentiment has set in and we expect more buyers to come in and drive the price higher. Though we look forward to taking in some profits at $180 for the short term investors/traders.
Disclaimer: This article is provided for information purposes only without regard to any particular user’s investment objectives, financial situation, or means, and Quidax is not soliciting any action based upon it. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Adviser.