Here is what you need to know on Monday, June 1, 2020
Bitcoin made yet another attempt on breaking the resistance at $10,000 but the momentum stalled at $9,700 during the weekend session. A reversal took place with Bitcoin retesting key support at $9,400. Meanwhile, recovery ensued during the Asian session pulling the price from $9,446 to the current value of $9,548. The prevailing trend is bullish but the shrinking volatility suggests that gains are unlikely to be rapid in the course of the day.
Ethereum is one of the most improved among the top ten digital assets. Ether is trading 3.4% higher on the day. At the moment, it is becoming difficult to hold ETH/USD above $240. Moreover, the prevailing trend is bearish amid expanding volume. Buyers must ensure that gains above $240 are sustained. This way, they would avert possible declines towards $230.
Ripple, on the other hand, is trading above $0.20. An intraday high has been formed at $0.2061 from an opening value of $0.2024. The bulls’ desire is to keep the price above $0.20 support and focus on breaking the key hurdle at $0.21. A step above $0.22 would also pave the way for gains above $0.25.
Among the top 100 cryptocurrencies, the most improved in the include NEO (up 7%), Zilliqa (up 10.77%), and Holo (up 9.01%). Consequently, the worst-hit coins include Celsius (down 6.06%), Matic Network (down 12.42%), Augur (down 4.67%), THETA (down 12.05%), and Maker (down 9.77%).
Chart of the day: ETH/USD 4-hour
Bitcoin price fell in tandem with S&P 500 on Sunday from weekend highs around $9,700 to levels slightly under $9,400. The fall could have been as a result of day traders selling the local high to guarantee themselves a profit. At the same time, the futures linked to the S&P 500 made a 1.38% dive. Analysts in the futures market have attributed the fall to the ongoing demonstrations in the United States. However, the options did not stay down for long as they recovered from the Sunday dip to levels around 3,048. The recovery was in tandem with BTC spike above $9,500 to the extent of touching $9,612 (intraday high). The correlation between Bitcoin and the S&P 500 hints sentiments growing in regard to Bitcoin’s potential for gains above $10,000. As the stock market in the US recovers mainly due to the mitigation put in place to cushion the economy from the negative impact of COVID-19, Bitcoin is also staring into a potential rally above $10,000.
Ethereum options are also on a significant rise across exchanges such as Deribit and OKEx. Moreover, the price of the second largest cryptocurrency has spiked in the last few days to hit levels above $200. Although the volume of Ether futures is not a direct signal for possible price growth; it shows that investors are taking great interest in Ethereum markets.
Cardano (ADA), has in the last few days grown in value by more than 50%. The growth is mainly attributed to the news that its Shelly upgrade is around the corner following a successful testnet. The growth in value has also seen the crypto make back into the top ten, displacing Tezos (XTZO).
Shelly is going to open the network towards the ultimate decentralization while supporting smart contracts. The founder of Cardano, Charles Hoskinson believes that Shelly will be unmatched “from every dimension.” Analysts also believe that Cardano's price is heading to $0.1 after breaking the resistance at $0.08.
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