Weekly Cryptocurrency Market Brief

The cryptocurrency market has been rather calm lately. There have been some major moves, but there haven’t been these great bullish or bearish moves that have the entire market talking about them. We continue to see how the Altcoin, Dogecoin is making headlines and continues to move higher reaching a market capitalisation that’s higher than major US WallStreet companies.

 

Bitcoin has moved higher since it reached the $53,000 support level. This level has been a major support for the instrument as it has held three times so far since the 26th April until the most recent attempt to break below it on 4th May. The instrument has been trying to move above the $58,500 and $59,000 resistance cluster and have failed so far. The most recent attempt to break above happened on 3rd May and a decent correction happened after the Bulls failed to follow through.

 

However, it would seem that the bullish momentum is having a boost coming from the US. The latest news coming from there is that banks are finally considering adding Cryptocurrencies to their basket of tradable assets as well as offering custodian services to these assets. The effect on BTCUSD could be easily seen as the instrument bounced from the 100-SMA (Simple Moving Average) breaking through the 50 and 200-SMA on the 4-hour chart.

 

While BTC has been trading in a consolidation manner between $59,000 and $53,000 for the past week, we’ve seen Litecoin (LTC) reach the $360 level. Previously, we had mentioned how the instrument has been trading higher and exhibiting some bullish behaviour with its ability to break above the 100-SMA on the 4-hour chart. This was reinforced by the golden cross between the 50-SMA and 100-SMA on the same timeframe.

 

The move higher breaking through the $300 resistance and the continued move past the $340 and reaching the high of $360, reinforces the power that cryptocurrencies are currently having on the markets as they continue to move higher. However, signs of trouble might be appearing especially with the MACD (Moving Average Convergence Divergence) indicator showing signs of decreasing bullish momentum. It’s nothing overly alarming as the instrument did move towards the $340 resistance-turned-support.

 

This week witnessed Ethereum (ETH) breaking past the $3,500 level hitting new all-time highs and pushing its crypto market dominance to 17%. With this move, it’s market capitalisation beat many Wall Street firms, the likes of Mastercard, PayPal, and Bank of America. Despite this incredible move, it seems that the momentum is still going higher. The exchange supply on this instrument has been dropping at a much faster rate than exchange inflows, which suggests that there is bound to be more upside, and less of a risk for any major sell-off.

 

From a technical point of view, Ethereum is showing signs of consolidation as the RSI (Relative Strength Index) has dropped back below the overbought zones and is printing right at the 60-level, while the MACD histogram is showing the lack of momentum. When you combine these two indicators together you can get a fair idea on just how the market is expected to move which is suggesting some consolidation as the market gets used to Ethereum’s new position.

 

(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-principal 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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