Bitcoin and Ether Market Update: May 28, 2020
Total crypto market cap lost $9 billion of its value since Monday morning and now stands at $255.5 billion. Top ten coins are all in green for the last 24 hours with Bitcoin (BTC) and Litecoin (LTC) being the best performers with 3.5 and 2.5 percent of gains respectively. At the time of writing bitcoin is trading at $9,160 on the Bitstamp daily chart, while Ether (ETH) is hovering around $206 and Ripple’s XRP moved up to $0.196.
Bitcoin closed the trading session on Sunday, 24 at $8,714 after it was rejected for the third consecutive day at the long-term downtrend line. The move resulted in a 5 percent correction, which also led to a 10.4 decline for the week.
On Monday, the BTC/USD pair found the necessary stability at the $8,700-$8,600 support zone and bounced back to $8,906. Bulls managed to preserve the mid-term uptrend unbroken and were already preparing for a reversal to the upside in the coming days.
The trading session on Tuesday, May 26, was slightly different than expected as the leading cryptocurrency first visited the psychological level at $9,000 in the early hours of trading, then hit the support at $8,700 before closing with a small loss at $8,834.
The mid-week session on Wednesday was marked by the overwhelming presence of buyers. BTC formed a huge green candle to $9,220 and added 4.4 percent for the day while trying to break above the diagonal resistance.
On the smaller timeframes, it successfully broke out of the ranging zone on the 1-hour chart and was also able to regain positions above the 200-day EMA on the 4-hour chart.
In terms of trading volumes, they started to pick up on Monday climbing to $32 billion then slightly decreased to $27 billion on Tuesday and Wednesday.
The Ethereum Project token ETH moved down to the meeting point of the horizontal support at $200 and the previously stable mid-term diagonal resistance. The coin erased 7 percent of its value on a weekly basis.
The new trading period started positively for the ETH bulls as they pushed the price of the leading altcoin up to $204 thus compensating for some of the loses. The double top formation was invalidated.
On Tuesday, May 26, the ETH/USD pair, however, could not continue its way up and fell to $201 after hitting $196 during intraday. The already-mentioned diagonal line was temporary broken, but on the smaller timeframes (1-hour chart) it was visible that the local uptrend coming up from $180 remained intact.
The third day of the workweek was marked by an impressive performance by ether. It climbed up to $208, which resulted in a 4 percent increase.
The 24-hour trading volumes peaked at $11 billion on Monday and remained stable around $7-$8 billion for the next two days.