Weekly Analysis Using Aurox (BTC/ETH/BNB)

in #cryptocurrency5 years ago

The current recovery in the crypto world is showing signs of an end to the long and crushing bear market. While this doesn’t mean that the markets will be soaring back to the highs quickly, it does confirm that most of the major cryptocurrencies might not revisit their bear market lows.

As many investors are stuck at higher levels, the rise to the top might face a number of bumps. Still, the sentiment is slowly changing from sell on rallies to buy on dips. After the current rally, do we find any buy setups in the three major cryptocurrencies? Let’s find out.

BTC/USD
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Bitcoin is on fire. The trend is clearly bullish with both the moving averages sloping up and the RSI in the overbought zone. Usually, the rally that starts a new uptrend from the bottom remains overbought for a long time. We find the same here as the RSI has been close to overbought levels throughout this month.

Traders keep waiting for the dip to enter but it eludes most of them. Today, Bitcoin has broken out of the immediate resistance of $5,474 and is on its way to the next target of $5,743. We expect the bears to defend the $5,743-$6,000 resistance zone. But if the bulls scale above this level, a lot of money lying on the sidelines waiting for lower levels will be forced to jump in. That might result in a quick spike to $6,568 levels. It is difficult to say whether these higher levels will hold or will it attract profit booking by the short-term traders.

On the downside, the support is at the 20-day EMA. A breakdown of the 20-day EMA will be the first signal that the momentum is weakening. Below this support, the cryptocurrency can correct to $4,780. At the current levels, we don’t find a trade with an attractive risk to reward ratio, hence, we are not suggesting any long positions.

ETH/USDT

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Ethereum completed an ascending triangle formation on April 2, which is a bullish sign. Thereafter, it held the breakout levels successfully on April 15. This confirms the breakout as valid. Now, it needs to scale above the immediate resistance of $185.87 to pick up momentum. Both the moving averages are trending up and the RSI is in the positive territory. This suggests that the path of least resistance is to the upside.

Traders can buy on a break above $186 and keep an initial stop loss of $155. The target objective of the ascending triangle pattern is $238.21. However, there is a stiff resistance at $224.80 where the cryptocurrency might see some profit booking. Hence, partial profits might be booked closer to this level or the stop loss can be tightened, depending on the trader’s strategy.

On the downside, the first support is at the 20-day EMA, below which the next support is in the $160-$155 zone. If this zone breaks down, the digital currency will re-enter the triangle, which will be a bearish sign.

BNB/USDT

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Binance coin has been leading from the front. On April 20, it made a new high of $25.4973, scaling the previous high of $25.18 made on January 12 of last year. This is a major sentiment booster. It proves all the naysayers wrong who say that the cryptocurrencies will not be able to cross their previous lifetime highs in the near future. Projects with strong use cases will surprise people to the upside.

The virtual currency witnessed some profit booking after making the new high, which was to be expected. However, we like that it has not given up much ground during the pullback. This shows that the bulls are in no great hurry to close their positions.

In a strong uptrend, the pullback generally lasts anywhere between 1–3 days. Hence, we anticipate the bulls to attempt to resume its uptrend within the next few days. If successful, Binance coin can rally to the next target objective of $31.6972. Very aggressive traders can attempt this trade. They can buy at $26 and keep a stop loss of $22, but as the price has already rallied a lot from the bottom, we suggest traders keep their position size about 40% of usual.

On the downside, the first support is at the 20-day EMA and below that $16. Any break of this level will turn the tables in favor of the bears.

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