Crypto markets recover after a volatile trading day – Binance shines after rebounding +40%

May 13, 2022 - 2 weeks ago
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After erratic, volatile trading days, major cryptocurrencies, including Bitcoin, Ethereum, Binance and Cardano, finally stage a rebound/recovery.

Although, Binance appears to have been the best performer, after jumping +40% from US$208.00 (key support at US$205.00 to US$215.00) and is currently trading at US$300.00 (as of writing).

Bitcoin and other crypto markets have continued to display intense whipsaw price action from one day to the next, or even within a single day, as market participants try to gauge the impact of the highest inflation in decades (40 years), while others remain concerned that the U.S. Federal Reserve will hamper growth in its effort to bring inflation under control.

Meanwhile, Bitcoin has been bombarded after taking many devastating blows over the past couple of days and has tumbled approximately -27% in what has been a volatile week for the world’s largest cryptocurrency.

Now having posted a ‘spinning bottom’ Japanese Candlestick on Thursday, New York’s close, Bitcoin is currently moving further away from the key support at US$23,400.00.

A spinning bottom or top is a candlestick formation that signals indecision regarding the future trend direction.

Based on the technical indicators for Bitcoin, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative; however, it has managed to rebound out of the extreme oversold condition, while the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias, with the ADX (trend) indicator indicating a bearish trend.

While US$23,400.00 is intact, a decisive break above US$31,200.00 is expected to generate a move to the region of US$35,000.00 to US$37,000.00.

Daily Chart of Bitcoin

The crypto sell-off this week appears to have slammed on the brakes in the short term, with Ethereum displaying a rebound from the key 100.00 Fibonacci retracement (support) at US$1,685-90.

Based on the technical indicators for Ethereum, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative; however, it has rebounded out of the extreme oversold territory, while the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias, and the ADX (trend) indicator holds to a bearish trend.

While the Fibo support level remains intact, bullish eyes now look towards the region of US$2,140-70.

A decisive break above this region should generate a move to the recent breakdown level at US$2500.0. Reassess from there.

Daily Chart of Ethereum

This time, it was “song and dance” for the Binance, as the utility token of the global crypto exchange rebounded and displayed an impressive rise of over +40% on Thursday after hitting an intraday low of US$208.00, also viewed where the market plunged from a flash crash in October 2021 around US$205.00 to US$215.00.

Currently, holding above the US$300.00 threshold, along with posting a (weak) bullish Japanese Dragonfly Candlestick, it is assessed further upside potential may develop for Binance.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator holds to a bearish bias; however, it displays bullish divergence since the rebound, while the Moving Average Convergence Divergence (MACD) supports a negative signal, with the ADX (trend) indicator supporting a weak bearish trend.

Although some distance, a break of US$350.00 would be viewed as a bullish break and potential reinstating the upside from US$400.00 to US$420.00.

Daily Chart of Binance

After taking heavy casualties for nearly seven consecutive days, Cardano bulls are attempting to reestablish the upward path since displaying a modest rebound.

Having sunk deep into uncharted waters, the market bulls came up for air from US$0.42-US$0.44 after the bears printed an intraday low of US$0.39.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative, however, displaying signs of further recovery, while at the same time, the Moving Average Convergence Divergence (MACD) holds to a negative signal, and the ADX (trend) indicator supporting a bearish trend.

With the level at US$0.42 slowly gathering support, now views a move towards the region of US$0.60 to US$0.72, reassess from there.

Daily Chart of Cardano (ADA/USD)

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