The total crypto market cap erased $31 billion from its valuation for the period since Monday and now stands at $1.24 trillion. The top ten coins were all in red for the last 24 hours with Solana (SOL) and Cardano (ADA) being the worst performers with 11.8 and 6.3 percent of losses respectively. At the time of writing bitcoin (BTC) is trading at $29,944. Ether (ETH) is at $1,819.
Bitcoin closed the trading day on Sunday, May 29 at $29,471 in its second consecutive day in green after once again confirming its short-term bottom right above the $28,500 horizontal support. The biggest cryptocurrency has been trading in the 31,300 – $28,500 range since May 10. It is worth noting that it formed its ninth red candle on the weekly chart in a row for the first time in its history erasing 2.9 percent for the last period.
However, on Monday, bulls continued to push in the upward direction as the BTC/USDT pair reached $31,807, surpassing the 21-day EMA and breaking above the upper boundary of the above-mentioned range. The trading volumes were still increasing slowly while the Relative Strength Index (RSI) moved out of the oversold area, still in a bullish divergence.
BTC remained flat on Tuesday as the bulls were getting ready for consolidation before the next leg up. Or at least that was their expectation. Bears had a different thing in mind and on the mid-week session on Wednesday, they took control over the short-term price action by pushing the price 7.7 percent down to the $29,300 area during intraday and below the 21-day EMA.
The coin stopped at $29,800 at the daily candle close ending the month of May with a 15.3 percent loss.
What we are seeing midday on Thursday is a relatively calm session where BTC is trading higher – at $29,930.
The Ethereum Project token ETH bounce back up from the extremely stable horizontal support in the $1,700-$1,750 area during the weekend of May 28-29 and on Sunday it reached $1,812. This however could not help it avoid yet another red weekly candle as the ether lost 11.4 percent for the period and approached its macro support levels.
On Monday, the ETH/USDT pair climbed 10 percent up to reach the $2,000 mark below the 21-day EMA. We could see a classic bullish divergence with the RSI on the daily timeframe chart which allowed the leading altcoin to temporarily reverse the trend direction.
The Tuesday session was slightly different and the coin corrected its price down to $1,944 closing the monthly candle with a 28.4 percent loss.
On the third day of the workweek, bulls could not reclaim the psychological level of $2,000 and we saw ETH falling sharply to $1,817 or 6.6 percent lower.
It is currently trading flat as of the time of writing this market update. Trading volumes across all pairs are low suggesting a continuation of the downtrend can be expected. Still, the chance for a relief rally cannot be fully ignored.