Bitcoin and most major altcoins are slumping, but the charts suggest that a recovery could be around the cor
Bitcoin and most major altcoins are slumping, but the charts suggest that a recovery could be around the corner.
Bitcoin (BTC) extended its decline on May 12 but analyst Philip Swift, co-founder of trading suite DecenTrader and creator of data resource LookIntoBitcoin, does not expect a deep correction. He said it was “interesting to note that the long/short ratio has been climbing as price has trended down.”
One of the reasons that is keeping analysts bullish is Bitcoin’s halving, which has followed a set cycle till now and analysts expect it to continue. Citing previous cycles, investor and entrepreneur Alistair Milne, said that the time to buy was now.
However, in the near term, Bitcoin could be facing pressure due to the relief rally in the U.S. dollar index (DXY). Typically, the DXY has an inverse correlation with Bitcoin’s performance.
What are the important support levels that may attract buyers in Bitcoin and the major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin formed a long-legged doji candlestick pattern on May 10, indicating indecision among the bulls and the bears. The sellers resolved that to the downside with a break below the support line of the symmetrical triangle pattern.
The moving averages have completed a bearish crossover with the 20-day exponential moving average ($28,142) slipping below the 50-day simple moving average ($28,496).
This along with the relative strength index (RSI) in the negative territory indicates that bears are in command. The next target on the downside is $25,250. This is an important level for the bulls to defend because it is the neckline of the inverse head and shoulders pattern.
If BTC price rebounds off this level, the bulls will again try to drive the BTC/USDT pair above the resistance line. On the other hand, a break below $25,250 could open the doors for a potential downside of $20,000.
Ether price analysis
Ether (ETH) turned down from the 20-day EMA ($1,866) on May 10, indicating that the sentiment has turned negative and traders are selling on rallies.
The ETH/USDT pair broke and closed below the support line on May 11, indicating the resumption of the correction. The pair could next reach the 61.8% Fibonacci retracement level of $1,663. This level is likely to attract strong buying by the bulls.
The first sign of strength will be a break and close above the 20-day EMA. Such a move will indicate that the bears may be losing their grip. ETH price may then reach the psychologically important level of $2,000.
BNB price analysis
BNB (BNB) continued its southward journey and reached near the immediate support at $300. This level had acted as strong support on April 3 and March 15, hence the bulls will again try to defend it.
In the near term, the $300 level may start a rebound but that is likely to face strong selling at the 20-day EMA ($319). That will enhance the prospects of a break below $300. The BNB/USDT pair could then slump toward the next strong support at $280.
This negative view will be invalidated in the near term if the price turns up and breaks above the moving averages. The pair could then climb toward the overhead resistance at $338. For now, the pair may continue to swing inside the large range between $280 and $338.
XRP price analysis
The bulls are struggling to push and sustain XRP (XRP) above $0.43, indicating that demand dries up at higher levels.
The downsloping 20-day EMA ($0.45) and the RSI near the oversold territory indicate that bears are in control. Sellers will next try to sink the XRP/USDT pair below the $0.40 support. If they do that, the pair may complete a 100% retracement and plummet to $0.36.
On the contrary, if XRP price bounces off $0.40, the bulls will again try to push and sustain the pair above $0.43. Buyers will have to drive the price above the resistance line to signal the start of a sustained recovery.
Cardano price analysis
The long tail on Cardano’s (ADA) May 11 candlestick shows that the bulls are trying to buy the dips to the uptrend line.
The downsloping 20-day EMA ($0.38) and the RSI in the negative territory suggest that bears have the upper hand. They will try to sell on any recovery attempt to the 20-day EMA. If that happens, the ADA/USDT pair will again drop to the uptrend line.
The repeated retest of a support level tends to weaken it. A break below the uptrend line could pull tADA price to $0.33 and then to $0.30.
Contrarily, if bulls thrust the price above the moving averages, Cardano pricecould rally to the neckline of the inverse H&S pattern.
Dogecoin price analysis
The bulls have managed to protect the $0.07 level for the past…
cointelegraph.com