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As we step into the summer months, which are sometimes considered slow for investing, we can see that May was an even better month for the crypto markets than April. Total market capitalization grew about 70% during the month, with gains distributed across Bitcoin and a host of altcoins (MATIC notably climbed just over 1,000% during May).
In this long term price outlook, we will look at the top four major cryptoassets, as well as the OKEx proprietary token OKB.
OKB looks promising against Bitcoin. We can see below that a double bottom with bullish diverging RSI has transformed into a very likely new uptrend. Moreover, a higher low is visible on the most recent cycle. Another test of the region near 21k satoshis (sats) would begin to establish a market structure and start hammering away at the resistance there.
Looking at the entire price history (versus BTC) from January 2019, we can see that OKB is at its price floor and unlikely to dip further based on the bullish divergence. This means plenty of upside potential: the first sell target would be around the previously mentioned 21k sats, with the second at around 27k sats.
The upcoming weekly close will help is divine OKB’s direction; and any close above 19.1k sats would be very helpful to lock in an uptrend.
But we should remember that these are Bitcoin-priced targets. Dollar returns could be much higher, given that Bitcoin is likely in a long term bull market. However, Bitcoin’s price action over the last couple of days has hurt OKB and many other altcoins small and large.
If we look at OKB/USD, we can see a clear uptrend. Price, inflated by Bitcoin’s rise, has made a higher low within the last two weeks, a strong indicator of a further price rise. Bitcoin’s dump slightly damaged OKB’s support at $1.47 - a critical support based on the token’s price history. But getting back above this level and continuing the uprend should not be too difficult if and when Bitcoin stabilizes.
Bitcoin (BTC), had a brilliant May, climbing over 62%, the best month since August 2017. Out of the previous sixteen weeks, approximately when the Bitcoin uptrend of 2019 began, only three weeks have been in the red - an astonishing ratio.
But on the high timeframe RSI and MACD indicators, Bitcoin was absolutely overbought, and the consequences came in the last couple of days as the leading crypto lost almost 10% off of its price.
Based on last week’s candle close and the price action from the last few days, it looks likely that Bitcoin will enter some period of correction and retrace and months of consistent uptrend and gains.
In terms of percentage, Ethereum (ETH) has performed better than Bitcoin during 2019, more than tripling already; but seen in another light, the ETH/BTC trading pair has been performing rather poorly during most of 2019, owing to Bitcoin’s rally in the past two months. As such, most of ETH’s USD price rise during this period is a side effect of inflation from Bitcoin's rise.
The leading smart contract crypto has been cooling off in late May, after almost doubling in price (against USD) during the first half of the month. Bitcoin’s current price actionis, as usual, currently stealing the spotlight from altcoins. But they may run if Bitcoin stabilizes.
The trend is still up, although a nasty dip prompted by Bitcoin’s dump was quickly bought up in the early hours of June 4.
Looking at ETH/USD, we see that ETH has hit critical resistance at about $280 and twice been rejected there; but price action continues to consolidate upward in an ascending triangle, a bullish pattern, leading us to consider a possible breakout. This uptrend will hopefully continue despite - again - Bitcoin’s drama.
Looking at the ETH/BTC side, we can see Ethereum is holding the critical level above 0.030-0.031 BTC (purple), after bouncing on very strong support at 0.026 BTC; and also holding a fibonacci retracement level around 0.382, which is auspicious
Many analysts are predicting that altcoins such as Ethereum could do very well if Bitcoin corrects modestly; and here we see Ethereum well set up for a breakout at least up to the 0.035 BTC area in such a situation. Thus, the ETH/USD and ETH/BTC pairs both looked poised for a move up.
Litecoin (LTC) led 2019’s movements out of the bear market, and with the cryptoasset’s halving event due within a couple of months, it is possible that Litecoin’s bullishness will continue through summer and into fall.
But after almost 500% worth of gains (versus USD) since December 2018, LTC has come into contact with a very critical zone of support/resistance (S/R) around $120.
With Bitcoin’s correcting action of the past days, Litecoin has taken a beating - and looks ready for its own correction. On the LTC/USD pairing, Litecoin is putting in lower highs and lows on the daily RSI, and has a lot of work today in what is left of June 4 if it wants to avoid more downside. A trip down to $90 looks more likely than not.
It is, however, respecting the daily uptrend. Closing the day with a doji candle, and a return tomorrow to $115 would keep LTC out of trouble.
LTC/BTC looks better, with the crypto clearly respecting the trendlines within a perfect symmetrical triangle. If Litecoin can hold this pattern despite what Bitcoin does, it will remain well set up for a breakout - and more likely up - later in June.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.