- A bullish golden cross has formed on the daily BTC/USD chart.
- Past week we have seen Bitcoin struggling to push passed the $9,900 mark and attack $10,000.
- If we see the price push through and hold above $10,200, then traders believe bullish price movements will continue past $10,500.
Looking at our daily chart we can see a clear Golden Cross has been painted with our 200-MA line crossing over the 50-MA line. Generally speaking most traders believe this to be a bullish sign, definitely we can see that Bitcoin's price has recently been making higher lows and is in a multi week positive trend.
Is this the start of a crypto market bull run?
Historically speaking pushing through the $10,000 mark and holding the price above, has always been a major barrier for Bitcoin. Don't forget that a Golden Cross has not always been a sign for long term bullish price trends, we only have to look back to the cross painted on February 19th, which was followed by a massive drop to $3,750 on March 13th. That being said, it should be expected to see more buying pressure over the next few days.
For the short term, traders should be watching the $9,900-$10,000 resistance zone closely. If the Bulls run out of steam and the price trades sideways for too long, then we see a bearish outcome where the price drops to the major support levels. The next major support level would be around the $8,900-$8,550 mark.
It should also be noted that there is definitely a scenario where BTC see immense selling pressure once we reach $10,500 and bounces off the highs of February 13th into a trend reversal - just think of all the traders who will want to make profit off their buys during the lows of March.
Ethereum (ETH) painted a Golden Cross several days ago, and with all of the good news that has been coming out of several ETH projects lately - traders should definitely be paying attention to the second biggest cryptocurrency.
Quick Take on Ethereum news:
- Uniswap v2 has been released it is a major upgrade to the largest decentralized exchange by trading volume, seen as a very positive sign for ETH and DeFi.
- Reddit (one of the most visited websites in the world) embraced Ethereum wallets and announced a community point tokens for certain subreddits (currently on testnet).
- dYdX launched Perpetual Contracts for trading Bitcoin with high leverage.
- Argent, a smart wallet, rolled out upgrades that makes it extremely easy for novice crypto users to embrace DeFi and go bankless.
- The time of collaborating and earning as a DAO is here, with several governance tokens at the forefront of Ethereum's bullish signs. Just this week MetaCartel announced it will be evolving into a DAO Incubator.
And to top it all off we can see a Golden Cross was painted on the Daily Chart on 13th May. Price has been trading sideways above $200, though a breakout towards $230 or even $280 is still possible.
We can see above despite talk of ETH2.0 being released in July $228 is a major resistance level. The bears are defending these price levels heavily which has resulted in sideways trading over the past few days in a very tight channel. If the bulls can keep up the momentum to finally breakout of this channel then this should be see as a very positive sign, in this scenario we would expect the price to be pushed up to $280.
If the breakout goes the opposite direction, with the ETH/USD pair turning down and dropping under the support levels (the lower dotted blue line on the chart) then a drop down to $175 (the current 50-MA line) is quite likely.
Speculation is also rife that VISA may be planning to use the Ethereum network for its upcoming digital fiat currency, if this turns out to be true then we could definitely see it as an outside news factor that greatly influences the price of Ethereum.
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