🤷🏾‍♂️Market Analysis 05/06/2019🤦🏾‍♂️

BITCOIN

While the market participants are confused around the direction BTC, we stay one step ahead. There has been no significant news around bitcoin which should be providing us with a long term downtrend, so we should still be bullish. What is clear is that the market is in a stalemate and the weekly VWAP is a clear indication. Disorientation is screaming out on the charts with price consolidating under the monthly VWAP at $7800. If you don’t already know, I focus my trading around the VWAP. With the Weekly VWAP in a downtrend, the price below $8000 which is the current Monthly VWAP and 30-day VWMA there is no inkling to buy BTC. As there seems to be buying pressure around $7600, we have to keep an eye on price as we will be in a tight range for the rest of the week.

WARNING: Price may break below $7600, and my theory will be a fall to $7200 before rebounding. I want to be very clear that you are taking a considerable risk of buying bitcoin around the current price of $7800. Bitcoin needs to close above $8000, which will show the true colours of the current market. The grey area on the chart marks confusion and consolidation. Place a few limited trades within the green value area, and if the price closes below $7200 jump ship for the down tend to $6200.

Litecoin

There is no surprise at the moment that cryptocurrencies are not doing very well this week.

Check out my BTC analysis if you have not seen it already.

Now! LTC has struggled this week to push back above the weekly VWAP (Dark Blue line) which is a little concerning to me. With price consolidated around the previous monthly VWAP level (Yellow Line), which is also the current 30 – day VWMA and the fact that these levels sit on $100 I would be placing my hands in my pockets for now. There is no reason to buy litecoin at this price, and if we drop below $100, there will be a steep drop towards $90.

WARNING: With the weekly VWAP in a downtrend this week should be off limits to buy litecoin until we see a close above the monthly VWAP and price sustains a level above the weekly VWAP . On the opposite spectrum, a close below $100 would be the right place to load up on more litecoin for a long term hold. LTC will not end this year below $100 especially with the litecoin halving in two months. Use the value area on the chart as a guide but be careful as the price could be heading towards the three months low, which is the 90 -day VWMA (purple line).

Ripple

It is hard to consider whether you should be in the market to purchase XRP. When looking at the current chart, it is clear that price has already bounced off the three months low at $0.39. There was a sharp sell-off at $0.41 on the 4th June which will be the price that XRP will need to break through before you should be looking to buy once again.

The current price is below multiple levels of the monthly VWAP, and until we see the current weekly VWAP on Monday, I would avoid trading XRP. The price will need to move into the value area next week and must maintain a price within or above the value area (Green Area).

WARNING: With the price of XRP dropping by 20% in the last six days, I believe we will slowly move back into the value area. I have never been a big fan of XRP, but sadly, I am holding a lot from 2017 and will continue to monitor its trend. If price breaks below $0.38, then all hell will break loose as the next real buying area would be $0.30.

“Patience is the key to any market” – Nathaniel.

Thank you for your love and support. Also, check out the Pineapple Chicken blog for great inspirations in those moments when you are not thinking about the markets 😍

Regards

Nathaniel – “The value Trader”
Little Big Movement

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