Cryptocurrency market update: Starting the week in the red

Most coins are trading between the short-term support/resistance levels that have been in focus for the past month, and the fate of the counter-trend rally that started in February is still undecided

At the time of writing, the market has apparently postponed major gains, although some of the top 10 cryptocurrencies, like Stellar, are still making strong movements upwards, with gains above 10%.

Most coins are trading between the short-term support/resistance levels that have been in focus for the past month, and the fate of the counter-trend rally that started in February is still undecided. I would expect the momentum to continue, as it seems coins are consolidating their new highs.

Bitcoin

The one-hour chart shows Bitcoin remains between the 20 and 50-day EMA, still below the next resistance level around $4,000. After pushing upwards midweek, BTC was able to remain above $3,800 – a quite critical level for the coin as it approaches the 50-day EMA.

Some traders argue we’ve capitulated and reached the bottom already this year. However, until the consolidation pattern breaks into bullish momentum again, I cannot yet confirm if the trend has, indeed, reversed. BTC’s volume spiked in the red as sellers regained some control during yesterday’s trading hours.

Let’s see how Bitcoin behaves through the week. The resistance level remains just above $3,700, close to the 20-day EMA.

Ethereum

Ethereum, chart by TradingView

Much like Bitcoin, Ethereum has been able to hold between the 20 and 50-day EMA, below the next resistance level around $140.

At the moment, ETH’s resistance level remains just above $130, close to the 20-day EMA. Ethereum is now consolidating around $133, meaning if buyers grab hold of key positions, we might see another few hours of bullish trading.

Ethereum trading volume remains in the red as sellers retook control yesterday.

Litecoin

At the time of writing, Litecoin is definitely one of the more bullish coins. Just by looking at the chart above I get sweet, sweet chills.

The 20-day EMA has started crossing the 50-day EMA and shows no signs of slowing down – a very good sign for LTC holders.

Although the price is now being controlled by sellers, the bullish momentum remains in the short term. LTC is now trading around $55, which is some way above the 200-day EMA. The next support level is sitting around $54, while resistance is sitting at $58.

If the markets turn green again, I expect Litecoin to be one of the strongest contenders to maintain its price.

Stellar

If you’re an XLM holder, then congratulations are in order, as the coin has been making some very strong gains. After buyers retook control of the market, Stellar’s price started mooning, and we saw the second-largest green volume spike of the year.

During the weekend, XLM went above its 20-day EMA and reached around $0.090, where the price sat for a while. It’s now currently trading above $0.10 after a 17% gain since Saturday.

If this momentum continues, I bet XLM will blast through its 50-day EMA, which quite likely is the target for the next support level around $0.11. Resistance is now sitting around $0.12.

Stellar’s tech has also been making progress, and we’re seeing increased adoption from institutional investors.

Binance Coin

I think this is the first time I’m actually putting BNB into my weekly market analysis. Should have done it sooner really – my bad.

Since early February, when Binance Coin was trading just above $6, it has managed to grow close to 200%. That is absolutely insane considering we’re in a bear market. The 20-day EMA has crossed both the 50 and 200-day EMA, and new support has been created around $14.

The performance of BNB is intrinsically connected to how the company generates revenue from listing, trading, and withdrawal fees and due to the Binance Launchpad – which helps ICOs launch their campaigns directly from the exchange.

Of course, as with anything that contradicts market trends, be very wary. I hope the positive trend continues, and buyers remain in control. However, price is clearly in overbought territory due to the recent BTT distribution and Fetch.IO ICO.

Has Binance created the perfect money-making scheme for holders? Maybe. My advice is to trade with care and beware of large short-term positions.

Safe trades!

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