Weekly Cryptocurrency Market Brief

Bitcoin’s weekly candle closed in a very bullish manner, forming a bullish hammer candlestick after a strong price rally on Sunday night. It appears that Bitcoin has been going through a re-accumulation phase in the market over the course of the past few weeks, after the heavy dip it suffered in mid-May. Altcoins have slowly and pensively moved to the upside as a result, as the psychological imprint due to the Bitcoin’s previous inability to break its recent bearish trend seemed to have its effect across the cryptocurrency market. However, Sunday night’s price action could prove to be pivotal, as it came on the back of a significant bullish Dragonfly Doji candlestick on the 5-day chart for Bitcoin.

Neo (NEO) has continued its sideways movement over the past week, trading in the $44-55 price range. The $44-46 support zone has held well since May, and price action has remained above these levels despite breaking down through the $55 support on June 7. Volume has been low and price volatility has fallen, as traders and analysts await the next big move in the cryptocurrency market.

Chainlink (LINK) has been building significant market structure over the past month, trading between a low of $15 and a high of $35. It also registered higher lows and lower highs in its current pattern and is poised to make a significant move in the coming period. The price has stabilized after its correction last month and it will seek to make up for its previous losses in the market. A break of the $26 resistance could see it test the $30 resistance zone, while a fall below $20 would signify further market movement to the downside.

Polkadot (DOT) has undergone similar price action in the market, consolidating between a low of $14 and a high of $30 after last month’s market fall. The current market structure has been solid and healthy amidst the formation of a large price channel. Should it undergo a revival, Polkadot would seek to test and break the strong resistance at $28. However, a fall below the support at $19 would indicate further bearish movement in the market.

 

(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.

 

ABX has received in-principle approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)

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