Welcome to our weekly cryptocurrency market analysis. Our weekly analysis seeks to provide you with a guide to navigating cryptocurrency trading/investment. Although it is important to state that like traditional financial markets like stocks or foreign exchange trading nothing is cast in stone.
As is our mode of analysis we use market fundamentals, market behaviour and sentiments. While for technical analysis, we adhere strictly to demand and supply.
This week Bitcoin has maintained its current price above $5000 reaching a new high of $5660, with an increased market cap of $92.74b while supply maintained above 17.6m based on data from coincap. These fundamentals show a clear demand dominance with the liquidity to mop up the supply.
From a technical analysis standpoint, the daily time frame can clearly observe that the price has approached the supply zone again making a clear Moving Average Convergence Divergence (MACD) divergence at $5660, this divergence can be confirmed by low volume which pushed the price to reach a higher high and technically we anticipate a short trading as bitcoin has continued to fall after making its higher high.
With the emergence of this MACD divergence, we anticipate a fall in Bitcoin price as we expect the bulls to cash out their profit leading to a fall in the market price. The next demand zone on the Bitcoin chart is between $4700-$4980 and that is the zone to buy again.
Etherum has continued to make its bearish price movement as envisaged. In the penultimate week, we analysed and reported the emergence of a clear Price and MACD divergence on the 4H time frame upon making a higher high at the price of $189 dollars. After that Etherum price has continued to decline on a weekly basis to the current price of $156 and we anticipate a decline till price gets to our demand zone of interest which is between $144-$146 where we expect the buyers to come in and drive the price higher.
Litecoin has continued to meet our trading analysis and expectations. From the technical analysis of the penultimate week, a clear price and MACD divergence were observed on the 4 hour time frame as the coin price approached the weekly time frame supply zone. And we expected this price to drop as the supply gains more dominance over demand, the current price is hovering between $70-$73 against the recent high $98. We still maintain exercising patience till we get to a daily demand zone of $61 where we could be looking forward to buying the coin again.
XRP’s Price behaviour flawed our analysis of last week as the coin continued on its bearish ride to the current price of $0.29711, the most interesting thing is that the price is currently on our demand zone of interest on the weekly chart below and we expect the price to rally up but we are advised to buy when the bearish momentum is exhausted and the demand is in control.’ Guided by this analysis we should be expecting divergence on the 4H or daily time frame to go bullish.
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.