Is the Crypto winter close to clearing?

With the crypto winter darkening in May, we sift through the charts of five coins to look for any signs of digital sunshine trying to break through the gloom. More so as the Nasdaq which Bitcoin has been correlated with is showing signs of a rebound.

Crypto 2

With the crypto winter darkening in May, we wade through the charts of five coins looking for any signs of digital sunshine attempting to break the gloom. More so as the Nasdaq which Bitcoin has been closely correlated to has commenced a rebound.

BTCVSNASDAQ

 

Bitcoin

A tough month for Bitcoin, currently down ~23% in May after a 17% fall in April. The move to the downside was reinvigorated by the collapse of Terra, which coincided with the break of trend channel support at $37,000, and a move to fresh cycle lows. 

Post the rebound from the low of $25,400, Bitcoin has spent the past 14 days in a tight range. This supports the idea there is some support for the quality end of crypto - ultimately a good thing for Bitcoin.

Technically, we remain cautiously short-term bullish Bitcoin looking towards $36,000, possibly $40,000, providing Bitcoin remains above the recent $25,400 low.

BTC

Ethereum

 

A tough month for Ethereum falling about 35% in May, following a ~16 fall in April.

As viewed on the chart below, after plunging through trend channel support at $2700 on the Terra collapses, it’s all been one-way traffic.

Concerningly even the bounce from the $1700 low is faltering. Still too early to call a bottom here.

ETH

 

Solana

 

Solana has fallen over 50% in May, following a 31% fall in April and is now down over 80% from its $259.99 March high.

After breaking below the horizontal support near $75 on the Terra collapse, Solana is still searching for a low possibly near the mid May $35.30 low.

SOL

 

Cardano

Cardano is down ~40% this month, following a 33% fall in April and is now down over 80% from its $3.0978 March high.

After breaking below the horizontal support near $0.7450, Cardano is still searching for a low, possibly near the support coming from the recent $0.3855 low. 

A break back above the trendline and horizontal resistance at $0.75c would provide an indication a base is in.

 

car

Ripple

 

Ripple is down ~34% this month, following a 28% fall in April. 

After breaking below the horizontal support near $0.55/50c, Ripple tagged a low near $0.33c before rebounding back towards $0.40c.

At this point Ripple has been able to hold onto most of its post Terra bounce and for this reason Ripple along with Bitcoin appears to be one of the coins closest to basing.

 

rip

 Source Tradingview. The figures stated are as of May 27th, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

  1. Open a Forex.com account, or log in if you’re already a customer.
  2. Search for the pair you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account