BITCOIN, RIPPLE (XRP) KEY POINTS:
- bitcoin the prices Struggle like low volatility and DXY hinder recovery.
- Cryptocurrency Exchange volumes are in session for the lowest month since October 2020.
- If the latest speculation proves correct, a decision on the SEC/Ripple case could lead to a vision for XRP/American dollar It rallied towards the 0.8000 mark.
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Bitcoin struggled to hold on to last week’s gains as a host of external pressures weighed on the world’s largest cryptocurrency. The obvious factor is the continued strength of the US dollar despite the agreement on the US debt ceiling as the Fed’s strong rhetoric and strong US data has led to a re-pricing of rate hike bets on the part of the hawks.
This didn’t seem to bother BTC/USD last week; However, the sell-off came this morning as comments from Federal Reserve official Loretta Mester were published in the Financial Times. Meester said she saw no reason to pause for now with a compelling case for further increases and then hold it there until the economic picture clears up. Bank of England Governor Bailey made similar comments last month, stating that the economic picture remains uncertain making the forecast particularly challenging going forward.
Despite the weakness of May, it is important to maintain a sense of perspective. Tracking performance over the past 90 days Bitcoin is up nearly 14.5% since its February close. The tweet below from Glassnode shows bitcoin’s performance over the past 90 days compared to WTI, Gold, and Silver.
Read more: How to use Twitter for traders
On the other hand, Ripple has seen a resurgence recently as unconfirmed reports started circulating that the Securities and Exchange Commission (SEC) case against Ripple could be settled in the coming weeks. The news is no doubt partly responsible for Ripples’ recent recovery which has it on track for a monthly gain of around 8% (at the time of writing). Impressive considering the past week, Ripple has been trading flat for the month around the 0.4560 mark.
The Crypto Fear and Greed Index itself is currently in neutral territory compared to the general Fear and Greed Index which is currently in greed territory.
Another sign of the current environment is cryptocurrency exchange volumes which are on their way to their lowest monthly level since October 2020.
Technical outlook and final thoughts
From a technical point of view, BTCUSD just entered the 100-day moving average below the 27,000.00 mark. Given the reaction we saw on Monday when the price hit the 50-day EMA, I hope that there will be some form of bounce off the 100-day EMA back towards the 28000.00 mark and possibly the top of the current channel.
Alternatively, a daily candle close below the 100-day moving average could see a retest of the channel bottom and possibly the psychological level of 25,000.00.
BTCUSD Daily Chart, May 31, 2023.
Source: TradingView, chart by Zain Fouda
Ripple (XRP/USD) on the other hand, we could see a continuation of the bullish trend this week before pulling back today. A daily candle close above the immediate resistance around 0.5500 has the potential to trigger an extended rally. We have a bit of resistance above 0.5500 all the way to 0.8000. This move represents a 44% surge in the value of XRP/USD and may be worth watching.
XRPUSD Daily Chart May 31, 2023.
Source: TradingView, chart by Zain Fouda
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— Written by Zain Fouda L DailyFX.com
Connect with Zain and follow her on Twitter: @employee