Cointree Crypto Market Update - May 27th 2020
In the week that was, bitcoin saw a sell-off after weeks of up-trending toward $15,000 AUD and at the time of writing, it sits at $13,510 AUD.
The largest crypto by market cap is flirting with a bigger pull-back after falling nearly 7% and as it looks to find a floor in the low $13,000’s. While short-term action is firmly with the bears, on higher time frames, bitcoin looks to be forming the right shoulder of a large “inverse head and shoulders” pattern - historically a bullish formation. If the pattern fails, the price will directly test the 50 and 100 Moving Averages on most timeframes, and should provide strong support. However, if we breach and go below $12,500, that could signal a trend reversal and a retest of $10,000 AUD prices should be expected.
We do often see a drop in price during a long weekend in the US, so we will have to wait and see which direction crypto markets take when major markets reopen tomorrow. For now, though, bitcoin is holding its higher low market structure created in March...but only just.
In the broader market, a few altcoins had big moves. OmiseGO leads the pack again, up 72% for the week, enjin is up 22%, and zilliqa is up 20% over 7-days.