ZB Market: BTC, ETH, & ADA technical weekly analysis
Goldman Sachs, the U.S. banking giant informed its staff that the organization will kick off its own cryptocurrency trading team, according to an internal memo. The memo stated that,
“I am pleased to announce the formation of the firm’s cryptocurrency trading team, which will be our centralized desk for managing cryptocurrency risk for our clients. The Crypto trading team will be a part of Global Currencies and Emerging Markets (GCEM), reporting to me, within the firm’s Digital Assets effort led by Mathew McDermott.”
Moving forward with more bullish news during the course of last week trading sessions, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC) admitted that Bitcoin was a “store of value” despite its volatility.
Appearing on the US congress session for the first time made an opened remark that,
“It’s a digital, scarce store of value, but highly volatile.” Also in addition he said.
From a fundamental perspective, this was a breaking news that poised the crypto market capitalization for massive rally as shown on the chart below.
Traders appetite were on risk-on to expose their capital to volatile digital assets such as BTC, ETH , ADA , DOGE etc. altcoins were in blue sea as ETH led the altcoins to the moon as shown on the chart below.
In previous week session, BTC price closed with an evening star market pattern. This was a bearish signal to retail traders.
Last week, due to high volatility during the Asian weekly session, BTC price surged to a high of $58976.18 but got pulled back with a daily candle closing with inverted hammer candle. The bears broke the EMA crosses and the 20-period SMA which caused BTC price to tank to $53171.78 support.
Technically, a double bottom was found on 5th May. The bulls reclaimed the weekly high of $58976.18 as bitcoin was recognized as a store of value.
From market indicators, the MACD moves above the signal line on a bullish cross over. While the histogram momentarily increased as the bulls struggled to counter attack the bear at a key significant price level of $59628.04. The Bollinger band initiate bullish divergence. The RSI moved sideways which indicate accumulation of the underlying crypto asset.
In the week ahead, from a bullish perspective, if the bulls succeed to break above the horizontal resistance of $59628.04, BTC will revisit the all-time high of $64358.56, and if there is lot of volume BTC will print a new record high at 70K.
But on the contrary, from bearish perspective, if the bear defend $59628.04 and break below $57896.29 on the 10th of May trading session, BTC price will retank to the $48416.70.
Last week, ETH extended its rally by 33.91% to an all-time high of $3949.27 with over $1000 gains.
ETH opened the trading session at $2949.11 and meandered on the upper band of the Bollinger band while the 20-SMA acted as dynamic support.
The MACD registered a bullish cross over while the histogram printed red twins’ peak as a sign of exhaustion of Bull Run to the upside. The RSI crawls in the over-bought territory without further uptick.
More so, ETH closed the week with bullish candle. This means the bulls are still in charge for another leg up to tap 4k before experiencing a pull back for correction in the week ahead.
From a bearish perspective, if the daily candle on 10th May closed bearish, ETH will retest the EMA crosses at $3202.42 in the week ahead.
In previous week session, ADA price consolidated with a range bound of $1.2666 and $1.3829. this consolidation deemed ADA price for accumulation as the EMA crosses acted as dynamic support.
Last week, with strong bullish engulfing candle, the bulls break out of the consolidation zone to retest an overhead resistance of $1.4831.
As the bull pressure waxes stronger, the Bollinger band diverges. Price action was felt on the upper band of the Bollinger but the bulls over shadow the bears to print an all-time of $1.8299.
RSI lingers in the over-bought territory while the MACD registers a bullish crosser. ADA poised to rally as the Bollinger band diverged in the weeks ahead. The key area of support will be $1.4831 as a higher low for ADA price to continue the uptrend in the weeks ahead.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.