The founder and CEO of one of the cryptocurrency merchant banks, Galaxy Digital, Mr. Michael Novogratz, admits that it is because of the interest of Wall Street firms and the strategy of different mainstream technology companies of adopting the blockchain technology, that has helped the Bitcoin to get attention from all over the world. Further, his expectation is that this attention can help Bitcoin to remain in the range between $7,000 and $10,000.
Though Bitcoin has experienced an upgradation in its price this year, this appreciation can hamper its future. The reason behind this is that as the price of Bitcoin rises, people would avoid to spend their Bitcoin at a large scale. As per the research conducted by Chainalysis, it is evident that this year, merchants performed only 1.3% of the total economic transactions from Bitcoin.
Considering the great rise in the price of Bitcoin, Bart Smith of Susquehanna believes that investment in Bitcoin can certainly be speculative. In spite of these analysis and the statements released, it is believed that if the right strategy is adopted for trading cryptocurrencies, it can be expected that this risk can be the same as the risk for the people involved in trading in different traditional financial instruments and assets like equities.
On May 30, Bitcoin (BTC) has risen above $9,000 but within a few hours, its price fell to $8,034.31. On May 31, the bulls attempted to raise the price of Bitcoin above $8,000. The efforts put up showed a rise in the price because of the rise in moving averages as well as RSI remaining positive. But, at the same time, the concern arose because of the fall of RSI warrants.
If the pair of BTC/USD leaps above $9,053.12, it is expected to hit the $10,000 mark for overhead resistance. Thinking of the negative part, if the pair falls below 20-day EMA, its next support can hit $7413.46. At the same time, Bitcoin will lose its momentum if the next support of $7,413.46 breaks.
For traders, it is recommended to play safe and avoid trading in Bitcoin for short-term positions. The traders need to wait for a proper setup before indulging in this digital currency.
On May 30, Ethereum (ETH) rose to the overhead resistance range between $300 and $322. But as per expected, the range bound fell to 20-day EMA. On May 31, the bulls attempted to raise the price of ETH above the 20-day EMA. If these attempts become successful, a rise in the overhead resistance range can be expected. Though some of the efforts put up by the bulls helped in rising the moving averages and bringing RSI in the positive zone, the concern came up with the fall in RSI warrants.
The pair of ETH/USD can fall to the mark as low as $225.39 if there is a breakdown in the support of 20-day EMA. Further, the breakdown of this support can extend to 50-day SMA.
The views of the author are solely based on the charts prepaired by ranadager on Tradingview. Readers are advised to do own reaserch before making a decision.
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