Day trading analysis: Endurance test for bulls trying to react to two days during which a lazy bear prevailed.
The day opens in green.
Scrolling through the list on Coinmarketcap you must go down to the 47th position to find the first negative sign of Bitcoin Private (BTCP) with a decrease of more than 2%.
Despite the positive premises, it remains premature to affirm the return of a bull that appeared last week after a bear that remained present throughout the month of May.
Among the top 20 best-known cryptos there’s Ontology (ONT) with an increase of more than 12%, followed by Binance Coin (BNB) with another double-digit performance (+10%).
Yesterday, the DDoS attack on the Bitfinex exchange was worrying, it forced the interruption of trading of all cryptocurrencies.
This action frightened users who, en masse, were chasing news on groups and social networks. Fortunately, the fears have vanished after a couple of hours thanks to a tweet on their official profile that announces the return to normality.
The news did not particularly influence the markets, showing tense nerves but controlled by the operators. In 2016 Bitfinex suffered a heavy hack attack which, however, was solved in the best possible way. Bitfinex is currently one of the world’s top three exchanges for trading volumes on bitcoin and ethereum.
Prices are rising above the resistance of 8 dollars, trying again to recover the absolute maximum above the 11 dollars scored on May 3. This condition allows the token to climb to 19th place in the capitalization ranking.
Good volumes were traded since the beginning of the month in support of a bullish trend that began at the end of May. The sharp rise in the last week of more than 25%, the third best for the first 50 coins, makes it possible to recover most of the losses suffered last month.
UPWARD TREND: when looking against bitcoin it is necessary to break the resistance of 10750 satoshis (sats) accompanied by buying volumes, otherwise there is a risk of witnessing a double maximum that opens the doors to a retracement.
DOWNARD TREND: the current bullish trend pushes the risk of the bear away. Only a return under the 9500 sats would trigger a first alarm bell. The upward trend is intact with the seal of the support at 9000 sats.
After holding their breath just below the crucial $7400 threshold, prices have returned to over 7,600 in the last few hours. The market share still remains at 38%, showing decisive resilience despite the particular phase of a market that remains uncertain and with low volumes.
Technically, consolidation above $7,500 and extensions above $7,800 are important. A condition that would put an end to the current attempt to move away from the lows at the end of May.
UPWARD TREND: the good volumes of the last few hours, higher than the hourly average of the last week, hopefully, will be the prelude to higher prices. The resistance in the 7800 dollars area has to be carefully monitored.
DOWNARD TREND: the failure to exceed 7800 dollars, would draw a dangerous double maximum that would increase fears of a bear’s return below 7400 dollars. For the last two weeks, prices have been fluctuating again without giving any precise signals, alternating between positive and negative days.
Prices are trying to consolidate in the $600 area. Yesterday’s bearish movement pushed prices to test $575, short-term support, without affecting the bullish trend started from the low of May 28, which, with the high of Sunday, resumed 25% of loss during May.
The balance of the last seven days exceeds 7%, indicating the goodwill to return rising and give confidence to operators who in recent weeks have preferred to pay attention to other altcoins.
UPWARD TREND: the break of the short-term resistance set at 610 dollars will have to be confirmed above the 630 area. Respecting both conditions increases the chances of clinging to the 50% Fibonacci threshold located just above the 670 area. Level violated in mid-May, fuelling the development of the bearish Head & Shoulders.
DOWNWARD TREND: Consolidation of the $600 area is required. A return below 550 would have a negative impact on the ongoing evidence to re-establish the conditions for a purchases return.