Top 5 Cryptocurrency Outlook 6/5/2021: BTC, ETH, BNB, DOGE, and XRP

Cryptocurrency, Top 5 Cryptocurrency Outlook 6/5/2021: BTC, ETH, BNB, DOGE, and XRP
Image by Jae Rue from Pixabay

Yerevan (CoinChapter.com) — Bitcoin is staging a bullish comeback after crypto custody firm NYDIG confirms that it has partnered with FinTech giant Fidelity National Information Services to enable US banks to offer crypto-focused services to clients. Dogecoin corrects lower after topping in the previous trading session, with Galaxy Digital’s report raising fears that the joke token might be in a bubble.

Performance of the top ten crypto assets
Performance of the top ten crypto assets as on May 6 morning session. Source: Messari

The biggest gainer among the top-ten cryptocurrency tokens is Bitcoin Cash, rising more than 24 percent as traders’ attention shifts to its May 15 upgrade. Meanwhile, Ethereum and Litecoin maintain their bullish bias for the week. XRP has jumped on hopes that its parent firm, Ripple Labs, would end up winning the lawsuit that the US Securities and Exchange Commission has filed against it.

Let’s begin the technical overview of the top five cryptocurrency tokens by market cap.

BTC/USD

Bitcoin bulls held key moving averages (MA) as support, with a confluence of 20-4H MA and 50-4H MA providing a good accumulation opportunity. That suggests that the BTC/USD exchange rate could rebound in the coming four-hourly sessions.

Bitcoin trades inside a rising channel
Bitcoin trades inside a channel that appears like a pseudo-Ascending Triangle. Source: BTCUSD on TradingView.com

In case of a retracement, the cryptocurrency expects to retest the rising trending that constitutes an Ascending Triangle/Rising Wedge pattern. Therefore, traders could enter a long position towards levels above $59,000 while maintaining a stop loss just below their entry levels to minimize trading risks.

Read more: Bitcoin Price Recovers on Two Wildly Bullish Announcements; What’s Ahead?

Meanwhile, falling below the 20-50 moving average confluence support would increase the risks of testing the Channel’s lower trendline. Bears could use such a spillover to open short positions towards levels below $53,500. The path of least resistance, based on the technical patterns, remains to the downside.

ETH/USD

Ethereum trades inside an ascending parallel channel, current correcting lower after testing the upper trendline as resistance. Based on previous pullbacks, it is likely for the ETH/USD exchange rate to continue its decline towards the lower trendline support (which also coincides with the 20-4H MA; $3,300).

A correction in Ethereum market looks likely
A correction in Ethereum market looks likely. Source: ETHUSD on TradingView.com

A short position towards the 20-EMA serves as a short-term opportunity for bears, providing they have placed a stop loss anywhere above $3,540 to minimize their risks in the event of a trend reversal. Adventurous cryptocurrency bulls expect to retest the $3,540 as their long primary target.

Read more: Excessive Overvaluation Risks Paring Ethereum’s Supersonic Price Rally

Anything above is a clear $5,000 price target, as suggested by many bullish analysts on Crypto Twitter.

BNB/USD

Binance Coin cryptocurrency bulls hold the 20-4H MA as short-term support, with their primary downside target shifting base between the 50-4H MA and the purpled $596-612 floor range. Looking from the medium-term perspective, the blacked ascending trendline has a history of capping bearish assaults. That could serve as a short target should the BNB/USD sell-off picks momentum.

Binance Coin cryptocurrency trade setup alerts about potential declines
Binance Coin trade setup alerts about potential declines. BNBUSD on TradingView.com

Conversely, breaking above the falling trendline resistance could open long opportunities towards the previous BNB/USD high at $681, with a provable price ceiling around $670-680 area acting as interim upside targets. It is advisable to place stop losses opposite to the direction of trades.

DOGE/USD

Dogecoin cryptocurrency consolidates inside a Symmetrical Triangle pattern as it shows signs of continuing its bullish momentum. The sessions ahead could have the DOGE/USD exchange rate stay inside the Triangle range, providing traders with ample intraday opportunities.

Dogecoin cryptocurrency hints breaking out of a bullish continuation pattern
Dogecoin cryptocurrency hints breaking out of a bullish continuation pattern. Source: DOGEUSD on TradingView.com

For instance, a pullback from the upper trendline could have them open a short position towards the lower trendline, with the 20-4H MA wave acting as a downside primary target. Conversely, a rebound from either the 20-4H MA or the lower trendline support could open similar long opportunities towards the upper trendline.

Read more: Bitcoin Bull Cycle is Not Over Yet, Alerts Critical On-Chain Indicator

But as the range gets squeezed, the potential of a breakout move would arise. A bullish one could lead the DOGE/USD towards $0.816. Meanwhile, a bearish one could crash it towards $0.45, as measured from the Triangle’s trendlines convergence level.

XRP/USD

XRP bulls face short-term resistance in the $1.66-1.76 price range. But promising fundamentals indicate that the cryptocurrency could keep on climbing in the coming sessions, providing also it maintains the moving average confluence as support.

Ripple cryptocurrency expects to continue uptrend
Ripple cryptocurrency expects to continue uptrend. Source: XRPUSD on TradingView.com

A breakdown move from here would have traders eye the 20-4H MA and 50-4H MA as downside targets. A further break below would shift the target to the blacked ascending trendline that constitutes an ascending parallel channel.

Conversely, if the XRP holds above 20- and 50-4H MA, the cryptocurrency’s likelihood of testing the Channel’s upper trendline increases. Right now, the upside target sits near the XRP/USD’s all-time high of $1.969.

Key Cryptocurrency Market Takeaways

  • Financial Times reported that institutional investors have started looking into cryptocurrency assets as activity on the US stock market cools down.
  • Mainstream media, including the Wall Street Journal and ZeroHedge, has increased their coverage on higher inflation. Financial Times also penned a piece fearing an inflationary shock caused by the Federal Reserve’s expansionary policies.
  • Over $1 billion worth of Bitcoin options will expire this Friday.

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