Bitcoin (BTC) breached the $60,000 support level on May 1, indicating a weakening uptrend. Despite this, analysts remain optimistic about the long-term prospects of Bitcoin.
Negative news surrounding the launch of Hong Kong spot Bitcoin and Ether (ETH) exchange-traded funds (ETFs) on April 30, as well as continued outflows from US-based spot Bitcoin ETFs for the fifth consecutive day, have dampened investor sentiment.
However, it is important to note that every bull market experiences sharp corrections, which allow long-term investors to add to their portfolios. Nonetheless, it is advisable to wait for the price to confirm a bottom before making significant investments.
The question now is whether Bitcoin and other altcoins can initiate a sharp recovery that catches aggressive bears off guard. Let’s examine the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis:
Bitcoin’s consolidation broke to the downside on May 1, indicating bearish dominance. Buyers will attempt to push the price back above $59,600, but if it turns down from that level, it could drop to the 61.8% Fibonacci retracement level of $54,298. However, if the price turns up and breaks above the 50-day simple moving average ($66,596), this negative view will be invalidated in the near term.
Ether price analysis:
Ether broke below the 20-day exponential moving average ($3,170) and the $3,056 support level on April 30, signaling bearish control. If bears sustain the price below $2,852, the ETH/USDT pair could decline to $2,700 and subsequently to $2,400. To prevent further decline, bulls need to quickly push the price back above the moving averages.
BNB price analysis:
BNB’s long tail on the April 30 candlestick indicates buying at lower levels, but the momentum could not be sustained. The bears continued selling and pushed the price below the moving averages on May 1. If the price drops below the critical support at $495, it could sink further to $460 and later to $400. However, if the price bounces off $495 and rises above the moving averages, the range-bound action may continue, with $635 as the obstacle for the next leg of the uptrend.
Solana price analysis:
The failure of bulls to initiate a rebound off $126 in Solana shows bearish control. The minor support at $116 could be tested, and if it breaks, the SOL/USDT pair may plunge to $100. Bulls need to push the price above the 20-day EMA ($144) for a potential short squeeze and an ascent toward the 50-day SMA ($166).
XRP price analysis:
XRP attempted a relief rally from the psychological level of $0.50 on April 29, but the bulls couldn’t sustain the higher levels. Sustained selling pulled the price below $0.50, opening the doors for a retest of the solid support at $0.46. Bulls are expected to defend the zone between $0.46 and $0.41 to prevent a downtrend. If the price bounces off $0.46 and rises above the 50-day SMA ($0.57), it could indicate a weakening bearish grip.
Dogecoin price analysis:
Dogecoin’s fall gained momentum after breaking below the symmetrical triangle pattern. The bears pulled the price below the neckline of the bearish head-and-shoulders pattern. If the price remains below $0.12, it could slide to $0.10 and eventually to $0.08. A rise back above the neckline would indicate solid buying at lower levels and potentially signal a trend change.
Toncoin price analysis:
Toncoin broke below the 50-day SMA ($5.32) on April 30, indicating bearish pressure. The zone between the 50% Fibonacci retracement level of $4.90 and the 61.8% retracement level of $4.25 is a crucial support that bulls need to defend. To signal the end of the correction, buyers will have to push the price above the 20-day EMA ($5.58) for a potential rally to $6.24.
Cardano price analysis:
Cardano is attempting a recovery from $0.42, but the weak rebound suggests a lack of demand from bulls. The downsloping 20-day EMA ($0.48) and the RSI near the oversold zone indicate a downside bias. A drop below $0.42 could lead to a retest of $0.40 support, with a potential decline to $0.35. Bulls need to cross the 20-day EMA to suggest a weakening bearish grip and attempt a rally to the 50-day SMA ($0.57).
Avalanche price analysis:
Buyers attempted to push Avalanche back above the uptrend line on April 29, but the bears resisted. A minor support exists at $31.92, but if that gives way, the AVAX/USDT pair could drop to $29.24. The zone between $27.24 and $29.24 may witness aggressive buying by bulls. To signal a comeback, buyers need to clear the downtrend line and rise to $42 and later to the 50-day SMA ($45.68).
Shiba Inu price analysis:
Bulls tried to push Shiba Inu above the 20-day EMA ($0.000024) on April 30, but the bears held their ground. The pair could slide to $0.000020, which is expected to act as strong support. Any rebound off this level may face selling at the 20-day EMA, and a sharp decline to $0.000018 becomes more likely. A break and close above the moving averages would indicate strong buying and a potential rally to $0.000033.
Disclaimer: This article does not provide investment advice. Readers should conduct their own research before making any investment decisions.