Bitcoin, Ether, Major Altcoins – Weekly Market Update May 31, 2021
The total crypto market cap added $74 billion of its value for the last seven days and now stands at $1,614 billion. The top 10 coins were mostly in green for the same time period with some of them posting double-digit gains. Internet Computer (ICP) was the worst performer with a 21.5 percent decline in value. Bitcoin (BTC) is currently trading at $36,950, ether (ETH) is at $2,575.
Bitcoin closed the trading day on May 23 at $34,688 or 7.4 percent down for the day. The biggest cryptocurrency lost 25 percent of its value on a weekly basis, making it 46 percent of a pullback since its all-time high value of $64,975 registered on April 14.
The coin was trading as low as $31,100, but the overall selling activity and downtrend strength were starting to decrease. Not only that but Tesla’s very own Elon Musk announced he had joined forces with Microstrategy’s Michael Saylor to work on a more environment-friendly solution for bitcoin mining.
The BTC/USD pair started moving upwards on Monday, adding 11.26 percent to its value for the day and successfully surpassing the $38,000 mark.
On Tuesday, the coin moved up to $40,192 during intraday but retraced back down to $38,350 to form a small red candle.
During the mid-week session on Wednesday, the biggest cryptocurrency climbed up to $40,885, hitting the 200-day EMA on the daily chart, but once again it lacked the necessary momentum to preserve its gains. It closed at $39,105.
On Thursday, the BTC/USDT pair was moving up and down the $39,500 -$37,500 range, but at the end of the session just formed a similar candle on the daily chart but in the opposite direction.
The last day of the workweek saw BTC losing 7.4 percent and correcting its price further down to $35,640. It lost the local horizontal support at $37,000.
The first day of the weekend started with a failed attempt from bulls to recapture the support on Saturday. It dropped to $34,600 instead.
Then on Sunday, the coin jumped back up from the horizontal support zone and stabilized at $35,700.
Bitcoin is trading significantly higher – at $36,950 midday on Thursday.
The Ethereum Project token ETH registered a daily low of $1,729 on Sunday, May 23 – its lowest point since the most recent correction began. The coin erased 41 percent on a weekly basis. What is worth noting is that it managed to keep its price floating above both the 21-day EMA on the Weekly chart and the lower boundary of the uptrend corridor– important indicators for the mid to long-term trend direction.
On Monday, the ether drew a solid green candle to $2,652, growing by 25 percent for the session.
The move was followed by a second consecutive day on positive territory for the leading altcoin. On Tuesday, it hit the 50-day EMA at $2,975 while also touching a daily low of $2,374 at some point during the trading day. Still, it managed to stabilize and end the session at $2,700, above the $2,500 support zone.
On the third day of the workweek, the ETH/USDT pair continued to rally. It climbed up to $2,922, near the 21-day EMA, but faced a significant resistance their which forced it to retrace a little.
Some of the major altcoins were printing an inverted head and shoulders pattern on the lower timeframes which is a bullish pattern once the second shoulder pullback is confirmed.
On Thursday, the coin could not move above the resistance cluster formed by the fast-moving average and the horizontal line and put an end to the three-day-long winning streak. It dropped down to $2,738, which was followed by an even deeper pullback on Friday. Bears were in control and successfully pushed the price of ETH 11.8 percent down, also below the $2,500 support.
The weekend of May 29-30 started with an attempt from bulls to re-gain positions above $2,500. However, there was not enough buying strength and the leading altcoin fell further to $2,278.
On Sunday, the ether rebounded from the lower boundary of the uptrend corridor and closed the week at $2,384.
It is trading above the $2,500 S/R zone early on Thursday, 7 percent up for the day.
- Chainlink (LINK)
This week the focus is on the leading oracle service provide – Chainlink. Once a Top 10 project, now LINK is placed at #14, 50 percent down from its all-time high.
Last week, the LINK/USDT pair added 33 percent to its value and managed to erase some of the losses since it started its rapid downfall in the second week of May.
It found stability near the August 2020 high around $19 – a solid resistance, which caused a 57 percent price pullback back in the summer of 2020. Now, it has turned into support.
What is next for the Chainlink project is to keep floating above $25 and the 200-day EMA on the daily timeframe and reverse the downtrend by avoiding a lower low. Ideally, the coin should close above $34 this week, which will help it break the diagonal resistance + the short to mid-term EMAs and the 50% Fibonacci retracement level.
Altcoin of the Week
Our Altcoin of the week is Enjin Coin (ENJ). The Enjin protocol network is an ecosystem for blockchain-based gaming products where users can interact and tokenize different in-game items on the Ethereum blockchain.
The popular “gaming” token added 61 percent to its value for the last seven-day period and was trading at the previous support level near $2 at some point, which corresponded to a 115 percent of increase.
Despite still being below the 21-day EMA on the weekly timeframe, the coin is one of the strongest altcoins following last week’s severe correction.
Enjin is currently placed at #69 on CoinGecko’s Top 100 list with a total market capitalization of approximately $1.52 billion. It hit a weekly high at $2.06 on Wednesday, May 26 and as of the time of writing is trading at $1.63 against USDT on Binance: