Weekend Recovery Short-Lived as the Bears Regain Market Control: Bitcoin, NEM (XEM) and Verge (XVG) Price Technical Analysis
Bitcoin (BTC) Price Technical Analysis
Bitcoin price enjoyed a weekend of trading higher lows and higher highs recovering from the lows of $6,514 traded on Friday last week. BTC/USD exchanged hands above the pivotal $7,000 level. Most crypto analysts saw a breakout that could see the price head towards $8,000. However, the upside gains were capped below $7,200 level.
Consequently, there were sharp declines in the price breaking below several key support areas including $6,900 and 6,850 (100 SMA). Bitcoin price found a weak support at $6,720, although there is a growing bearish pressure signalling further declines towards $6,700. Both the short-term 100 SMA and the longer term 200 SMA failed to support the price in the recent declines. The gap between the moving averages is widening on the hourly chart to indicate that the selling pressure could continue.
On the upside, the 23.6% Fib retracement level with the previous swing high of $7,470 and a low of $6,515 will offer stiff resistance as the price attempts to correct higher. The MACD indicator is dipping into the negative to signal that the bears have more influence in the market. The major support for BTC/USD is at $6,515. The short-term support level at $6,700 must hold to prevent further declines towards the major support.
NEM (XEM) Price Technical Analysis
NEM price is down 1.35% in the last 24 hours in a crypto market that is grappling with increasing selling pressure. The 4-hour chart shows the price exchanging hands below the 21 Simple Moving Average. During the recent declines from highs of $0.26, XEM/USD formed a support level at $0.22.
However, the price has been in a general uptrend since April 6. Subsequently, there was a stronger defined ascending channel on the chart from the weekend trading session. The 61.8% Fib retracement level with the last swing high of $0.26 and a low of $0.22 failed to support the price during the sharp declines on Monday. There is a growing bullish trend in the price near $0.23, as the price appears to gain momentum. As the price retraces higher towards $0.25, it will encounter more selling pressure at the above Fib retracement level.
On the downside, the short-term support for XEM/USD is at $0.23 level, but the primary support area remains at $0.22. The traders must continue to change their sentiments about XEM to force a sustained trend reversal to the upside.
Verge (XVG) Price Technical Analysis
Verge price, on the other hand, is surging in a market engulfed with selling pressure. XVG/USD is defying the pressure in the market to record over 7% rise in value in the last 24 hours. The Privacy-focused cryptocurrency has had a share of controversies in the recent past. However, Verge enthusiasts support its vision through thick and thin. The recent controversy surrounding McAfee taking money to endorse digital assets hit Verge quite hard. Besides, the current absurd fundraising conducted by the lead developer is raising questions. Finally, Verge has delayed the release of the Wraith protocol.
In spite of the controversies, the traders have maintained their sentiments towards XVG. Technically, Verge price has been riding its way up since the beginning of April from $0.038 to highs of $0.073 traded in the first week of the month. The recent declines found a support at $0.052, where the price bounced and started correcting higher.
The price is trading above the 21 Simple Moving Average, however, the upside has been capped below $0.072. XVG/USD is flirting with $0.0700 as the MACD momentum indicator signals for more buyers to enter the market. The short-term support for Verge price is at $0.062, while the major support rests at $0.052.