Time to hit the break pedal

  • Cryptocurrencies are giving up gains of the previous week
  • Bitcoin is doing relatively well as compared to altcoins.
  • Here are the levels to watch according to the Confluence Detector.

Cryptocurrencies are in retreat. The total capitalization of all digital assets in circulation collapsed from $184 billion during early Asian hours to $180 billion by the time of writing. Bitcoin, the largest and the most popular digital asset, retreated from May 4 high of $5,839 to trade marginally above $5,600 handle by press time, BTC/USD has lost over 1.5% in recent 24 hours; however, altcoins are in a deeper decline. Ethereum and RIpple both down over 2%, while other coins out of top-20 nursing losses from 3% to 7%.

Various positive news items related to institutional adoption have underpinned the currency crypto craze. The broader picture is of an ongoing rally since the initial jump in April and since the great crash of November and December.

Meanwhile, the fundamental background remains robust. Broader institutional adoption amid improved risk sentiments supports the long-term bull’s case scenario. Though, on the intraday level, the market is prone to the downside correction, which is healthy as long as the prices stay above critical levels.

So, what levels should we watch?

This is what the Crypto Confluence Detector shows in its latest update:

BTC/USD clinches to $5,600

Bitcoin settled above $5,600 after a strong sell-off during early Asian hours. The cryptocurrency may spend some time in the current range, consolidating consolidate before the next move. Initial resistance awaits it at $5,640, created by a combination of  the Bollinger Band 15min-Middle, the previous monthly high, and the previous daily low as well as 23.6% Fibo retracement weekly and the middle line of 4-hour Bollinger Band.

The next strong barrier lies on approach to $5,800 where we see an upper boundary of 1-hour Bollinger Band, the previous weekly high and PP 1D-R1.

On a trip to the South, BTC/USD…

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