As the Bitcoin rally picked up momentum, the volume also spiked higher. Bitcoin futures on CME made a new record as the number of traded contracts reached 33,700 on May 13, which was way higher than the previous record of 22,500 contracts that exchanged hands on April 4. It is facing some profit booking close to the overhead resistance of $8,496.53.
The first support on the downside is at $7,413.46 and if this level breaks, the slide can extend to the 20-day EMA. Both the moving averages are trending up, which shows that the BTC/USD pair is in a bullish grip. We will watch for the next two days and if the bulls fail to push the price above $8,496.53, we will suggest booking profits on the complete position. On the other hand, if the pair breaks out of $8,496.53, it can move up to $10,000. Though we like the way it has rallied, still we suggest traders book profits on 30% of their long positions at the current levels to pocket some gains and raise the stop loss on the remaining to $175, just below the 20-day EMA. If the price sustains above $225.49, the stops can again be raised to break even. Any dip is likely to find support at $200 and below it at the 20-day EMA. Our bullish view will be invalidated if the ETH/USD pair plummets below the 20-day EMA.
Ripple (XRP) soared on May 14 and broke out of the overhead resistance of $0.33108 and $0.37835. It might face some profit booking close to $0.450 from where it might enter into a minor correction or a consolidation. We expect this level to hold and the XRP/USD pair to provide traders an opportunity to enter long positions.
On the upside, a breakout of $0.45 can clear the path for a rally to $0.60, with minor resistances at $0.50 and $0.55. It is a good trading strategy to wait for a low-risk entry point with a suitable stop loss and not chase the price higher.
Bitcoin Cash (BCH) is currently facing selling close to the resistance line of the ascending channel. With both the moving averages sloping up and the RSI in the overbought zone, the bulls have the upper hand.
A breakout and close (UTC time frame) above the channel will be a positive sign and can result in a quick move to $500, followed by a rally to $638.99. The BCH/USD pair has a history of vertical rallies, hence, these targets are achievable.
However, if the pair fails to break out of the channel, it might gradually continue to climb higher. It will weaken and slide to the support line of the channel on a breakdown of the 20-day EMA.
Litecoin (LTC) closed (UTC time frame) above the overhead resistance of $91 on May 14.
The target level to watch on the upside is $158.91, with a minor resistance at $127.6180. The moving averages have turned up and the RSI is in the overbought zone.
We will watch for the LTC/USD pair to pick up momentum and quickly rally above $102, else the bears will again try to sink the pair back below the breakout level of $91. We may close the position if the price sustains below $91.
EOS is looking strong as it has broken out of the overhead resistance at $6.0726. It can now climb to the next overhead resistance at $6.8299. The 20-day EMA has started to slope up and the RSI has reached the overbought zone.
If the EOS/USD pair fails to ascend $6.8299 in the first attempt, it might consolidate near the resistance for a few days or correct toward the 20-day EMA. The trend will turn in favor of the bears if the price slides below the strong support zone of $4.4930–$3.8723. A cryptocurrency that breaks out to new highs with a strong move signals that there is more to come.
The BNB/USD pair can now move up to the resistance line where it is likely to face some selling. The pair had turned down thrice from this resistance line, hence, it is an important level to watch out for. Any dip will find support at the 20-day EMA. This shows that the path of least resistance is to the upside.
Stellar (XLM) has broken out of both the moving averages and the resistance at the long-term downtrend line. There is a minor resistance at $0.13250273 and if this level is crossed, the rally can extend to $0.14861760. The pattern will complete on a breakout and close (UTC time frame) above $0.14861760. This gives the pair a target objective of $0.22466773, with a minor resistance at $0.17759016. We will wait for the price to sustain above $0.14861760 before suggesting a trade in it. However, if the bulls fail to push the price above $0.14861760, it might dip to the 20-day EMA once again.
Cardano (ADA) has been gradually inching higher towards the overhead resistance of $0.094256 for the past few days. If the price breaks out and closes (UTC time frame) above $0.094256, it will complete a rounding bottom pattern that has a target objective of $0.161275. The traders can buy on a close (UTC time frame) above $0.094256.
On the other hand, if the bulls fail to ascend the overhead resistance of $0.094256, the ADA/USD pair might remain range bound for a few more days. It will turn negative on a break below the recent lows of $0.057898. As the digital currency had been consolidating for a very long time, we expect the next rally to last long and reach $0.050, with a minor resistance at $0.040.
Contrary to our assumption, if the TRX/USD pair fails to sustain above the range, it will extend its consolidation for a few more days. The trend will turn negative if the bottom of the range at $0.0183 breaks down.