The cryptocurrency market is slightly gaining traction as we come to the end of the week. The digital assets have collectively explored new lows in the month of May. Bitcoin dropped from trading above $8,000 to test the key support area at $7,300. A brief bullish momentum teased the market yesterday where cryptos like Bitcoin Cash (BCH) and Monero (XMR) recorded slight gains. The bear pressure is still looming in the market but cryptocurrencies have begun making corrections to the upside. In our Investor insight segment today, we will look at the two coins that offer the best buy opportunities; Monero and Bitcoin Cash.
Although Monero is down over 45% in the last past one month, the cryptocurrency has stayed abreast with the other digital assets. It has battled to shake off the negative press surrounding it with allegations that is a favourite for criminal activities. Monero achieves its privacy by cryptographically obsfuscating the addresses that are sending and receiving funds. The amount of the money sent is also hidden from the public.
Monero along with other privacy-focused coins were removed from Coincheck and Korbit exchanges this week due to their focus on privacy. This might seem like the crypto that is always in the red. But Monero has been making considerable developments and upgrades and has come to be known as the only real untraceable coin. Moreover, the lead cryptographer Ricardo Spagni is working on launching another project under the umbrella of Monero known as Tari. Tari is going to be the real Ethereum-Killer and probably the first real competitor. It will focus on developing a new protocol that will allow the creation of decentralized applications. Furthermore, Monero has said that the end user experience will be one that has never been seen before.
At the moment, Monero (XMR) is trading at $165, although it opened the session above $170. The buyers are looking forward to $200 but in the meantime, a break above $190 will be good enough. Monero (XMR) surged in price during the bullish trend in April, tested $300 but selling pressure kicked in leading to lower corrections. Monero (XMR) has the potential to retrace higher and currently, buying the dip is the best entry position.
Bitcoin Cash (BCH)
Bitcoin Cash (BCH), on the other hand, has been on a journey of its own. It was trading side by side EOS and both made considerable gains last month. EOS smashed its all-time high at the beginning of the year, while BCH/USD attacked the $1,800 level. The hard fork on Bitcoin Cash was the main catalyst for the surge but did not lead to the creation of a new coin. This generally affected the price towards the hard fork but the good news was that the network has become faster and the user experience has been improved as well.
Bitcoin Cash adoption into the economy is on the rise with many merchants across the world preferring BCH payments as opposed to BTC. The cryptocurrency payment processor, BitPay added support for Bitcoin Cash payments. The move was welcomed with open arms by customers who had to change their BCH to BTC before making payments. The usability of a coin contributes to the demand for the coin which has a ripple effect on the price.
The fourth cryptocurrency by market capitalization is currently trading at $1,030. It has recovered from sliding below $1,000 during the session on Thursday 24. The technical analysis places the next target on the upside at $1,100 but the bulls are psychologically eying $1,300.
The crypto market is a volatile one, but a downslide also presents the best buy-low opportunities. No one wants to buy Bitcoin at its all-time high at almost $20,000. But buying Bitcoin at $8,000 and it surges to the all-time high is impressive to the investor. Significantly, Monero (XMR) and Bitcoin Cash (BCH) present good opportunities to enter while the price is low. Industry analyst Tom Lee has predicted that a bull run will be led by Bitcoin which, he says will hit $25,000 by end year. Other cryptocurrencies will surge too as a result of the Bull Run.
This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.