Cointree Crypto Market Update - May 20th 2020
With the halving in the rear view, bitcoin saw another bullish run at the $15,500 AUD level and at the time of writing it sits at $14,925 AUD.
The largest crypto by market cap is up 14% for the week, dipping to a low of $14,300 AUD before resuming into the $15,000’s. The bullish upward trend remains and the price has been making higher lows the past 7 days. We can see in the chart that bitcoin is bouncing off the 50 EMA with strength, which indicates buyers are stepping in on the dips. The concern is that bitcoin has now tried to breach the $15,500 level and has been rejected 3 times, and if it cannot break this huge resistance area, then it is more than likely we are in for a strong correction.
We are approaching decision time for bitcoin as multi-year patterns begin to resolve themselves, including a huge descending triangle from 2017. As bitcoin remains above key moving averages and making lower highs, it would appear ready to test higher prices, but market sentiment is overwhelmingly positive, so we must temper expectations and prepare for the downside in case it fails a fourth time.
Bitcoin’s upward move took much of the attention, but some altcoins saw positive moves in its shadow. OmiseGO is up a whopping 46%, zcash is up 16%, and monero token is up 10% over 7-days.