Weekly Cryptocurrency Market Brief

The cryptocurrency market has been experiencing lots of waves recently, especially with altcoins outperforming everyone else. We must do the honourable mention of Ripple who has shocked everyone with the meteoric rise that it did and managed to reach the $2 mark, this comes after the SEC seemed to be losing its case against the company. As for the rest of the coins, let’s see how they are doing.

Bitcoin has managed to set an all-time high for itself, reaching the $65,000 resistance level. However, it seems that both sellers and profit takers began the push against the instrument, as it fell towards $62,000. For the most part, the instrument continued to trade within its ascending channel, however, many dangers lie ahead of BTC. Chief among them is the inability to properly break above the midline of the ascending channel.

The instrument is currently trading around $63,000 after the $62,000 support proved its worth. The focus for traders is on whether or not BTC has the ability to break above $63,500. If it proved that it can’t, then the Bears are going to have a field day pushing the instrument lower. However, the mentioned $62,000 support, as well as the lower bound of the channel, will most likely test the Bears’ commitment to continue with the downside.

Ethereum’s rise higher does seem relentless. The smart token recorded an all-time high reaching just below $2,480. It’s been a tough ride for ETH and it looks like it’ll be able to continue moving higher. However, the current structure of the RSI (Relative Strength Index) is signalling severely overbought conditions on the instrument. At the same time, MACD (Moving Average Convergence Divergence) is still showing bullish momentum quite strongly.

While nowhere close to its all-time high at $360, LTC has also found enough momentum to move higher reaching $280 before falling from there. The Bulls have not been stingy with this instrument, as the rise from $240 to $280 has been well noticed. However, the $280 resistance has been causing a lot of trouble for the coin and it has tried to break above it 4 times in the past couple of days, all of which have failed. Yes, the instrument rose above it, but that doesn’t mean breaking, as it would need to close above the mentioned resistance level.

Looking at the technical indicators of RSI and MACD, we can notice that the momentum higher is beginning to waver. This can be seen on the MACD with the histogram printing right at the 0-midline and the MAs seem to be switching their trajectory from up to down. The RSI, on the other hand, remains above the 60-level indicating that there is still the possibility of more upside.

 

(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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