The recovery in Bitcoin and most major altcoins halted near respective overhead resistance levels, indicatin
The recovery in Bitcoin and most major altcoins halted near respective overhead resistance levels, indicating that the bears are active at higher levels.
The United States stock market recovered sharply on May 17 and May 18 on hopes that the debt ceiling agreement could be reached, but the market gave back some of it gains on May 19 on reports of a temporary halt in the talks.
The U.S. dollar index (DXY), which had been rising for the past three days turned down on May 19 after Federal Reserve Chair Jerome Powell hinted at an end to the rate hikes. While speaking at a conference in Washington, D.C., Powell said that stresses in the banking system may restrict the need to raise rates as high as they “would have otherwise to achieve our goals.”
Although Bitcoin’s (BTC) short-term picture is uncertain, analysts remain bullish about the long term. Blockstream CEO and co-founder Adam Back recently said that “hyperbitcoinization” could soon come. That would boost the demand for Bitcoin, sending its price soaring. Back made a case that the number of “wholesalers” has been steadily rising and if the trend continues, it could happen that 10 million people try to buy one Bitcoin over a few years, and that “would push the price out of reach.”
Do the charts signal a possible recovery in Bitcoin and the altcoins in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
The bulls again tried to drive the price into the symmetrical triangle pattern on May 17 but the bears fiercely guarded the level and pulled Bitcoin lower on May 18.
The BTC/USDT pair will continue to witness a tough tussle between the bulls and the bears in the area between the support line and $25,250.
The downsloping 20-day exponential moving average ($27,590) and the relative strength index (RSI) in the negative territory indicate that bears have a slight edge. However, the failure of the bears to sustain the price below $26,500 shows that the selling pressure reduces at lower levels.
If buyers pierce the overhead resistance, the pair could start a rally to the 50-day simple moving average ($28,412) and thereafter to the resistance line. A break above the triangle will turn the tables in favor of the bulls.
Ether price analysis
The bulls have been trying to drive Ether (ETH) above the 20-day EMA ($1,840) for the past few days but the bears have not allowed that to happen.
The long tail on the May 16 to May 18 candlestick shows that the bulls continue to buy the intraday dips. This enhances the prospects of a break above the 20-day EMA. If this obstacle is cleared, the ETH/USDT pair could rise to the resistance line of the falling wedge pattern.
This is the key level to keep an eye on because a break and close above it will indicate the start of a new up-move. On the downside, the bears will have to tug the price below the support line to start a downward move to $1,600.
BNB price analysis
BNB (BNB) continues to trade inside a descending channel pattern. The price turned down from the 20-day EMA ($315) on May 18, indicating that the sentiment remains bearish.
The first sign of strength will be a break and close above the 20-day EMA. That could clear the path for a likely rally to the resistance line. The bears are again expected to protect this level with vigor. If the price turns down sharply from the resistance line, it will suggest that the BNB/USDT pair may remain inside the channel for a while longer.
The bears are likely to have other plans. They will try to sink the price below the support line of the channel and challenge the crucial support at $280.
XRP price analysis
After struggling near the 20-day EMA ($0.45) on May 17, buyers cleared the barrier on May 18. This suggests that XRP (XRP) is witnessing a comeback by the bulls.
The flattening 20-day EMA and the RSI in the positive territory indicate that the selling pressure is reducing. There is a stiff resistance zone between the downtrend line and the 50-day SMA ($0.48) but it is likely to be crossed. If that happens, the XRP/USDT pair could start its northward march toward $0.54.
On the contrary, if the price turns down from the current level, it will suggest that the bears continue to sell on relief rallies. That could keep the pair stuck between the 50-day SMA and $0.40 for some time.
Cardano price analysis
The bulls tried to sustain Cardano (ADA) above the 20-day EMA ($0.37) on May 17 and 18 but the bears did not relent.
The bulls have not given up much ground from the 20-day EMA, which is an encouraging sign. This shows that every minor dip is being purchased. The bulls will again try to launch the price above the…
cointelegraph.com