The Cryptocurrency market has been experiencing some bullishness, and this comes after severe bearishness that took most instruments to new lows. The move lower has triggered a lot of sell orders that either wanted to cash out from their long positions, or simply take advantage of the negativity that surrounded the market. Now, the instruments are seeing bullishness return, and a lot of this can be attributed to the B conference that took place this week.
Bitcoin’s negativity has been quite apparent for a bit of time, as the instrument’s break below the $31,000 support was the first trigger for Bears to capitalize on. The massive sell-off in the market that ensued, allowed the Bears to push the instrument even lower, reaching $29,300. While it wasn’t the low of June 22nd, it was still a massive blow for the instrument. That’s when the Bulls decided to defend the line as best they could, and with help from the B conference, it was able to rally back higher to reach the $32,650 resistance level.
At the mentioned conference, Tesla’s CEO Elon Musk and a lot of his colleagues were very supportive of the cryptocurrency market, praising it for the technological advances. Musk also highlighted the fact that he owns both Bitcoin and Ethereum, which was a big push for BTC to rise. Currently, the instrument is attempting to rise above the resistance at $32,650, but the presence of the 200-SMA (Simple Moving Average) close by, might make it difficult to continue this upward move.
Ethereum has also benefited from the B conference. Since the instrument has been stuck in a downward trajectory that saw it reach the lows of $1,700. This just goes to show how strong the negativity that surrounded this market was. The B conference and Musk’s comments owning ETH, allowed the instrument to rise higher, reaching above $2,000. On its way up, ETH was able to break above the 50-, 100-, and 200-SMAs on the 4-hour chart; this shows that the Bulls are fully in control for the time being. Currently, the instrument is attempting to break above $2,100, and should the instrument succeed in doing so, the Bulls will completely take over.
Ethereum’s RSI (Relative Strength Index) is showing that the bullish momentum might be coming to an end. The indicator has been able to bounce off the 30 level and reach the 70 level. This rapid move from oversold to overbought will put a lot of traders on high alert, as it could mean that the market would change its tune and find itself on the back foot. However, the MACD (Moving Average Convergence Divergence) is showing signs of bullishness, with the MAs pointing higher above the midline.
While BTC and ETH are both showing bullish behaviour, namely with the way their momentum indicators are trading, LTC is showing some bullishness, but it is nowhere near the levels of BTC and ETH. The instrument has managed to move the bullish momentum of the market higher. After reaching a low of $104, the Bulls took over the instrument and started their move up, as the momentum was just enough to allow a break above the 50-SMA.
The RSI for LTC on the 4-hour chart saw the indicator rise from below the 30-level and reach the 60-level. This is where it gets a bit tricky. The indicator must be able to break above the 60-level on the RSI, or else the bullish momentum will not be fully realized and would simply be a correction instead of a reversal. The 60-level translates to the current resistance on LTC at $125, so the instrument needs to break above that level to continue the bullish momentum.
(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.)