The cryptocurrency market is starting to feel some bullish creep back into its veins. After a long drought of this bullishness, with only bearishness to occupy the void, the market is holding on to any sign of bullishness with a tight grip, afraid to really let go. The main cryptocurrency instruments have experienced this bullishness after they touched their respective lows, which allowed the Bulls to enter the market and push the instruments higher.
Ever since Bitcoin hit an all-time high near $64,900, the instrument has started to experience some negative pressure that led it to fall from the mentioned highs to the $28,800 lows. The movement down was swift, as the BTCUSD broke through many supposedly strong supports and finished at the mentioned low. However, there’s always some glimmer at the end of the tunnel, the Bulls were able to find the needed momentum to rise back higher.
Looking into the technical side of the instrument, we can notice that the RSI (Relative Strength Index) is showing a strong comeback, after the instrument fell the way, it did. The indicator is showing that the instrument is on course to continue the movement higher as the line is pointing towards the 60-level. This could mean that the instrument is on the verge of another move higher. This is collaborated with how the MACD (Moving Average Convergence Divergence) is printing. The indicator’s MAs are pointing above the midline with the histogram showing a decreasing negative momentum and soon might turn positive.
Ethereum is also showing an increase in the bullish momentum after the massive drop that the instrument experienced. Ethereum’s drop from the highs of $4,400 to the lows of $1,600 had a major impact on the instrument, but even with that, the bullish momentum didn’t really fade as the technical indicators are showing a strong bullish presence. The instrument has managed to rise from the mentioned lows towards the $3,140 level as the bullish momentum has allowed it to cover more than 50% of the drop according to the Fibonacci retracement.
The technical view of Ethereum shows the same thing that Bitcoin is showing. The RSI on the weekly timeframe shows that the line has risen above the 60 level. From our understanding of the RSI, when the indicator rises above the 60 level, we can expect that bullish behaviour to return to this instrument. Furthermore, the MACD of ETH on the same timeframe, is showing that the negative momentum is fading into the background as the histogram rises higher while the MAs are starting to point upwards while remaining above the midline.
Litecoin seems to be the odd instrument out, when compared to ETH and BTC. While the previous instruments are showing a strong resurgence of Bulls as they rise back higher in hopes of breaking above key resistance levels. Litecoin, on the other hand, doesn’t show the same bullish intensity as its cousins. After LTC dropped from the highs of $415, it kept falling towards the $103, however the recovery hasn’t been as many have hoped as it barely broke above the 23.6% Fibonacci retracement of the drop from the mentioned high to the mentioned low.
The technical information surrounding this instrument, especially when looking at the RSI and MACD, are showing that the negative momentum is decreasing, however, the pace is dwarfed by the movements in ETH and BTC. The RSI is printing at the 50 level; however, the momentum is pointing upwards. This gives the impression of more consolidation with upward bias. MACD is also showing the same idea, the MAs are printing right at the midline with the histogram showing decreasing bearishness.
(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.)
