- May 12, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
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 few days but they have not been able to start a relief rally in Dogecoin (DOGE). This suggests that buying fizzles out at higher levels.
The bears will try to strengthen their position further by pulling the price below $0.07. If they can pull it off, the DOGE/USDT pair could fall to $0.06. This level is likely to act as a support but the bears may pose a strong challenge at the downtrend line.
If DOGE price turns down from the downtrend line and breaks below $0.06, the selling could pick up momentum. The pair may then plunge to the critical support at $0.05. A break and close above the downtrend line will be the first sign that the selling pressure could be reducing.
Polygon price analysis
Polygon (MATIC) has extended its decline below the breakdown level of $0.94. This has pulled the RSI into the oversold territory, indicating that the selling may have been overdone in the near term.
The MATIC/USDT pair may turn up and retest the breakdown level of $0.94. This level is likely to witness a tussle between the bulls and the bears. If MATIC price turns down from $0.94, it will suggest that the bears have flipped the level into resistance. That will increase the possibility of a tumble to $0.69.
On the other hand, if buyers kick the price above $0.94, it will suggest that the bulls are attempting a comeback. Polygon price may then recover to the resistance line where the bears will again mount a strong defense.
Related: Bitcoin’s dive under $27K liquidates $100M — So why aren’t margin traders flipping bearish?
Solana price analysis
Solana (SOL) has been trading near the immediate support at $19.85 for the past four days. This shows that the bulls are buying the dips but they have not been able to start a meaningful recovery.
The 20-day EMA ($21.56) has started to turn down and the RSI is in the negative zone indicating that bears have a minor edge. If SOL price turns lower from the current level or the downtrend line, it will suggest that the sentiment remains negative. The SOL/USDT pair may then descend to $18.70.
Contrarily, if bulls pierce the downtrend line, it will suggest that the pair is stuck inside the range between $19.85 and $27.12. The pair may first rise to $24 and thereafter attempt a rally to $27.12.
Polkadot price analysis
Polkadot (DOT) turned up from the strong support at $5.15 on May 10 but the bulls could not build upon this move. This suggests no takers at higher levels.
The bears used this opportunity and are trying to sink the price below the vital support at $5.15. If they manage to do that, it will suggest the start of the next leg of the down move. The DOT/USDT pair could then plummet to $4.50.
If DOT price reverses direction from the current level and rises above the 20-day EMA ($5.68), it will suggest solid buying at lower levels. The pair may first rise to the 50-day SMA ($6.06) and thereafter rally to the downtrend line.
Litecoin price analysis
Litecoin’s (LTC) bounce off the strong support at $75 is facing strong selling near $82. This shows that bears are pouncing on every minor rally.
The bears will make another attempt to yank the price below $75. If they do that, the LTC/USDT pair could resume its downtrend and slide toward the crucial support at $65. Buyers are expected to defend this level with vigor.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
