The cryptocurrency market capitalization has dipped following the criticism from the legendary investors Warren Buffett and Charlie Munger.
This time, even the founder of Microsoft, Bill Gates opined that he would short Bitcoin if he could. Contrary to his opinion, Microsoft continues to be supportive towards blockchain and cryptocurrency.
While these statements might scare away a few investors planning to invest into digital currencies and result in a short-term dip, it is not going to have any material difference in the long-term trend. A few months down the line, these dips will be hardly even noticed on the charts.
BTC/USD
Currently, the BTC/USD pair has again pulled back above the $9,000 levels, which is a positive development. This shows that the buyers are still keen to support prices at lower levels. Now, the bulls might attempt a rally back to $10,000 levels, which is a critical resistance. The digital currency will gain strength only above $10,000.
On the downside, a confirmed break below the $9,000 levels will result in a drop to the 50-day SMA. The RSI has formed a negative divergence which is a bearish sign.
We suggest maintaining the stops at $8,900 for now, we shall trail it higher in a couple of days.
ETH/USD
breakout above $745 can carry the ETH/USD pair to $838, which is the May 05 highs. Above this level, a rally close to $900 is possible. Though our target objective is $1,130, we shall take it one level at a time.
On the downside, a slide below the May 07 lows of $685.18 will signal weakness. Therefore, we recommend raising the stops higher from $640 to $680. Let’s reduce our risk.