Originally published by AxiTrader
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After a strong rally in first half of April, the cryptocurrencies are now consolidating. While the interest in cryptos has picked up again, it is far away from the crypto-mania seen in December of the last year. However, an increasingly mature crypto market is a positive development, and the only chance for a long-term success for the virtual currencies.
The charts are suggesting that the phase of consolidation could extend. Bitcoin is struggling with heavy resistance ahead of the $10,000 level and there was plenty of profit-taking from speculators. As long as the support at $8700 remains intact, the overall outlook remains positive. Nevertheless, the $10k level will not be easy to breach, and Bitcoin bulls will need patience.
Ethereum is struggling to gain momentum as well, following another failure at $720 resistance. Support can be expected at the rising trendline from the April low, followed by major support at $600. For ETH bulls, it is important that this level remains intact. Meanwhile, should the resistance at $720 be cleared, a rally towards $800 is likely to follow.
Ripple has recovered well since the flash crash, but the big resistance level at $1 still seems distant. Key support can be expected at the 38 % Fibo of the April rally at 0.7725. A clear break below that level would signal that XRP is likely to struggle in the near-term, with $0.60 the next notable support level after that.
