A week of indecision in the crypto market. The price of Bitcoin, up 12% in a week, is nevertheless ranging between $9,000 and $10,000 to settle around €9,000 ($9,800) on May 20. The €9,200 ($10,000) resistance level is about to be tested for the third time in two weeks. The more the price consolidates under this resistance, the greater the chances of a bullish break taking place.
Altcoins remain correlated to Bitcoin, even if some values stand out this week, such as Zcash with +19% and especially OmiseGo with +60%. Ethereum remains in its resistance zone between $200 and $220. Indecision is also noticeable in the stock markets. The U.S. S&P500 index has been hovering for several weeks around 2850 points, a potential bearish reversal level after several weeks of rebounding. The correlation between the crypto sector and the stock markets therefore seems to be continuing. Analysis.
- According to CoinGecko, capitalization is up again this week to $259 billion, up from $246 billion seven days ago.
- Bitcoin’s dominance remains high at 66.7% compared to 66.3% last week.
- The OmiseGo Altcoin (OMG) offers the best performance in the top 50 with +60% over the week.
- JPMorgan Bank is now opening up to cryptos companies and is beginning to grant customer accounts to a few platforms.
We invite you to discover our analysis in video (recorded on may 19, in french)
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Bitcoin (BTC)
Coinhouse’s Recommendation :
Wait/hold
- We still have to be patient this week on Bitcoin. The €9,200 ($10,000) resistance zone is being tested again. The probabilities remain on the buyers’ side as the uptrend on the daily timeframe, initiated since March 13, remains intact.
- For those who would like to strengthen their purchases, you have to wait until the price breaks up above the €9,300 ($10,100) level on the daily timeframe. This would then be a buy signal. The price would then move to the next resistance zone, between €10,300 and €11,100 ($11,500 and $12,500), which is a good area for strong profit taking.
- On the contrary, if the $10,000 still stands in the way, the sellers will take over. The first support to watch out for will be the €7,400 and €7,600 ($7,900 and $8,200) level, but the chances of it holding will be low. Breaking this intermediate support will be a sell signal and will trigger a more powerful bearish reversal, which should eventually lead the price towards the major support of €6,000 to €6,200 ($6,500 to $6,800).
Ethereum (ETH)
Coinhouse’s Recommendation :
Search for a buy entry point
- Ethereum (ETH) earns 13% over one week to settle around €195 ($213) on 20 May. But in the end, the price remains in its potential reversal zone of €185 to €200 ($200 to $220). If buyer pressure continues, this zone should eventually break, it will be a buy signal and the price will move to the next resistance zone of €250 ($260), which corresponds to a previous market peak worked in February. Profit taking can then take place at this level.
- Conversely, if the current price zone still rejects the price, it will redirect itself to the €165-€170 ($180-$190) support. Beware, if the bearish reversal amplifies, this intermediate support won’t hold and you’ll have to look for purchases at the chartist level of €140 ($160) instead.
Litecoin (LTC)
Coinhouse’s Recommendation :
Wait
- Litecoin (LTC) appreciates 8% this week to €41.70 ($45.50) on May 20.
- Since the sharp fall in March, Litecoin has recovered much less compared to Bitcoin and Ethereum, showing that this asset remains weaker. It is moving in a very slightly bullish regression channel, which is more akin to a correction after the sharp drop in March. Thus, the bottom of the pivot zone at €35.50 ($40) appears to be a support that must be held or else a new bearish trend will occur on Litecoin.
- To buy on Litecoin again, you will have to break the regression channel from the top, which means breaking the €50 ($55) level. Before doing so, we advise to stay away from this asset which is unable to start a strong uptrend at this stage.
Top & flops of the week (top 50 marketcap)
Tops
1- OmiseGo (OMG) : +62%
2- Theta Network (THETA) : +52%
3- NANO : +50%
Flops
1- DigiByte (DGB) : -2,6%
2- Maker (MKR) : +1,6%
3- 0x (ZRX) : +1,8%
Latest crypto news
- Travala.com adds DAI to its payment methods to book rooms in more than two million hotels in 230 countries.
The company already accepted the centralized stablecoins USDC, USDT, GUSD and BUSD. A Tokenized rewards system was also introduced by the company.
- The cryptos market continues to focus on a decreasing number of cryptos. Bitcoin, Tether, and Ethereum now account for 90% of traded volumes, compared to 75% a year ago.
- Reddit also starts tokenizing rewards.
Community Points” are given to contributors of the r/CryptoCurrency and r/FortNiteBR sub-reddits, which each have one million users. These points allow you to have more influence in votes and polls as well as to benefit from exclusive emojis or GIFs. Reddit has a community of 400 million users. Remember that the number of unique Ethereum addresses is 10 million.
- Uniswap, the most popular decentralized marketplace, is launching its second iteration.
New features are planned, such as the possibility for users to provide liquidity on ERC20/ERC20 pairs without going through ETH. A routing system that will allow any token to be traded against another even if the pair does not exist directly. An enhanced oracle system that will make Uniswap V2 an additional choice for decentralized applications. A “Flash Swap” system that allows you to borrow money during the time of a transaction, for arbitrage purposes, for example. The V1, a stand-alone Ethereum contract on the Ethereum blockchain, will continue to exist as long as Ethereum stands.
- The perpetual Bitcoin contracts we told you about a few weeks ago are now in production in the decentralized dYdX marketplace
They allow investors to gain exposure to Bitcoin price movements without going through a company, directly via the standalone dYdX contracts, which are themselves deployed on the Ethereum blockchain.
- The centralized FTX marketplace is also expanding its range of Bitcoin products with future contracts on Bitcoin hashrate
Remember that the hashrate refers to the computing power dedicated to secure the Bitcoin blockchain. It is measured in hashs per second. These new contracts are particularly interesting for Bitcoin miners looking to hedge their risk.
- Ripple Labs wants to develop lending and borrowing services
These would allow RippleNet customers to borrow capital through Ripple Labs’ On-Demand Liquidity (ODL) solution. Ripple Labs is looking not only to expand its range of services, but also to develop the use of the XRP token, which is used in ODL.
- JPMorgan and its leader Jamie Dimon are known in the crypto universe for taking a public stand against crypto
And yet, even this eternal detractor is now opening up to cryptos companies. The Winklevoss brothers’ Gemini marketplace and Coinbase have been granted customer accounts.
- More than 80% of the 66 central banks questioned say they are working on digital currency projects, also known as CBDCs for Central Bank Digital Currencies.
The European Central Bank is one of them, and one of its Executive Board members, Yves Mersch, gave a speech in which he explained that the ECB is focusing on a digital currency version made for individuals. He even alludes to the use of a “CBDC that could be based on digital tokens, which would circulate decentrally – i.e. without a centralized register – and allow anonymity to the central bank, as with cash”. Sounds familiar?
- Less than 48 hours after its launch, the tBTC token had to be removed from the market in an emergency.
A serious bug was discovered, which would have made it possible to steal the funds. tBTC is a project that aims to represent bitcoins on the Ethereum blockchain in a decentralized way.
- DTCC, Depository Trust & Clearing Corporation, the world’s largest financial securities manager, is considering the possibility of tokenizing its assets on Ethereum.
The company specializes in clearing and settlement services and would see it as a mechanism to secure and improve its processes.
Investors’ attention is drawn to the fact that the content of the articles does not constitute investment advice.
Investment in cryptocurrencies carries a risk of total capital loss.
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