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Crypto market developments

Nowadays, it seems that crypto traders not only have to monitor market developments, but also the tweets or statements of Elon Musk, Tesla’s CEO. Recently, as he hosted Saturday Night Live, a TV show, he called Dogecoin a hustle, which prompted a steep price decline. Then, days after that, he posted a poll on his twitter account asking followers if Tesla should accept Dogecoin. More than 78% of people who answered the poll said that it should. Dogecoin’s price picked up again. 

Elon the crypto mover

That was not the first time Musk influences the financial markets with his controversial tweets. Earlier, he prompted a rise in Bitcoin’s price after he said that Tesla would accept the cryptocurrency as a payment currency for Tesla cars. That pushed the price to new heights back then. After that, Bitcoin was trading at around $55000 per unit before Musk announced again that Tesla would no longer accept the cryptocurrency and caused the price to plummet below $50,000. 

Technical analysis of Bitcoin

Technically speaking, Bitcoin’s price looks like it has reached a consolidation phase. The uptrend momentum seems to have subsided, and the chart pattern looks increasingly corrective. Moreover, a recent breakout to the downside has taken place, which is a bearish signal. Bitcoin and other crypto are available for retail trading via mobile apps.

Technical analysis of Ethereum

Ethereum’s movement, on the other hand, was pretty much one-sided. In April along, the famous crypto saw a 150% increase in price from around $2000 to around $3500. Today, it is trading at around $3700. Enthusiasm for Ethereum is largely because of its blockchain which is faster than that of Bitcoin. Now is among the rare times when cryptocurrencies are not exactly moving in tandem as Bitcoin is in consolidation, whereas Ethereum is in an uptrend, but this could change.

Technical analysis of Ripple

Ripple seems to be moving in a correction like Bitcoin. It had moved up from under 50 cents per unit to nearly $2 in around two months. However, now the uptrend seems to have lost its steam. Given the current technical chart pattern, it seems that Ripple is more likely to decline than rise at this point. A movement above $2 would invalidate this prediction and push the currency’s price to new heights. This could usher a return to $3 levels seen before or near them. 

Generally speaking, Ripple is less centralized than other cryptocurrencies and thus it may not benefit from the enthusiasm around blockchain. However, it still moves in correlation with other cryptos like Bitcoin. 

Technical analysis of Litecoin

Litecoin has been moving in an uptrend in recent months. Its price climbed from $170 to above $400. Recently, however, its price has fallen to around $310. A corrective chart pattern is becoming more obvious, and the uptrend seems to be slowing down. A drop below $312 means that the uptrend has been reversed and signals the beginning of a downtrend. There is some degree of correlation between Bitcoin and Litecoin.

Summary

Most cryptocurrencies seem to be consolidating after a strong upward momentum. Traders who are interested in buying should wait for clear signals before jumping in. Profit taking might push the prices down, at least for a while.

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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