Bitcoin (BTC) experienced increased volatility in the past week. The price bounced back from a low of around $56,500 to close above $64,000, resulting in a marginal gain of approximately 1.5% compared to the previous week. This indicates that the sentiment remains positive and that buyers are taking advantage of lower levels.
According to data from Farside Investors, spot Bitcoin exchange-traded funds saw net inflows of $378 million on May 3. Of particular note was the $63 million inflow into the Grayscale Bitcoin Trust ETF, which is its first since converting into a spot Bitcoin ETF in January. While it is still early to determine, early indications suggest that the continuous selling in GBTC might come to an end.
Bitcoin’s recovery in 2024 has also contributed to the cryptocurrency sector attracting venture capital funding of over $1 billion for two consecutive months in March and April, according to RootData. This marks the first time this has happened since October through November 2022.
Now, let’s analyze the charts to identify the important resistance levels to watch for in Bitcoin and altcoins.
S&P 500 Index Price Analysis:
The bears are struggling to keep the S&P 500 Index below the moving averages, indicating strong buying at lower levels. If buyers can sustain the price above the 50-day simple moving average (5,131), it will signal the end of the corrective phase. The index may then attempt a rally to the all-time high at 5,265, where strong selling pressure from bears is expected. A break above 5,265 would indicate a resumption of the uptrend, with a potential rally to 5,500. On the downside, important support levels are at 5,000 and 4,950.
U.S. Dollar Index Price Analysis:
The U.S. Dollar Index (DXY) turned down from the overhead resistance at 106.50 on May 1, indicating strong defense by bears. The price fell below the 20-day exponential moving average (EMA) on May 2 and extended the decline to the 50-day simple moving average (SMA) on May 3. However, solid buying by bulls at lower levels was observed. If the price turns down from the 20-day EMA, it would increase the chances of a drop to the support line of the ascending channel. Conversely, a break above the 20-day EMA could push the price towards 106.50.
Bitcoin Price Analysis:
Bitcoin surged above the 20-day EMA ($63,556) after a minor hesitation, but it failed to break through the 50-day SMA ($65,937). Both moving averages have flattened out, and the relative strength index (RSI) is near the midpoint, indicating a range-bound action in the near term. The BTC/USDT pair is likely to remain between $56,500 and $73,777 for some time. A break and close above the 50-day SMA could attract further buying, potentially pushing the pair to the pivotal level of $73,777. However, strong resistance is expected at this level. On the downside, a break below $56,500 could start the next leg of the uptrend to $80,000.
Ether Price Analysis:
Ether (ETH) broke out of the 20-day EMA ($3,143) on May 6, but encountered strong selling by bears, as indicated by the long wick on the candlestick. Sellers will attempt to push the price down to the important support at $2,850. This level is crucial because a drop below it could lead to a decline to the support line of the descending channel. However, if the price turns up from the current level and breaks above the resistance line, it would suggest a potential trend change. The ETH/USDT pair could then rise to $3,730.
BNB Price Analysis:
BNB rose above the moving averages on May 3, signaling that the bulls are trying to push the price towards the overhead resistance at $635. However, the bears have successfully defended the $635 level on four previous occasions, and they will likely try to do the same again. If the price sharply turns down from the overhead resistance, it would suggest that the BNB/USDT pair may continue to oscillate between $495 and $635 for a while. A break and close above $635 would indicate a resumption of the uptrend, potentially leading the pair to climb to $692. On the downside, the bears would need to keep the price below $495 to gain control.
Solana Price Analysis:
Solana has been trading between $126 and $162 for several days, indicating uncertainty about the next directional move. The flattish 20-day EMA ($146) and the RSI just above the midpoint suggest that the range-bound action may continue for some time. If the price maintains above the 20-day EMA, the SOL/USDT pair could rally to the overhead resistance at $162, where buyers may face difficulties. However, if the bulls manage to push above $162, the pair could accelerate towards $205, which is likely to act as a strong resistance. On the downside, a break below the 20-day EMA could push the pair to $126.
XRP Price Analysis:
XRP rose above the 20-day EMA ($0.53) on May 6, indicating a potential end to the corrective phase. The flat 20-day EMA and the RSI just above the midpoint suggest a balance between supply and demand. If the bulls drive the price above the 50-day SMA ($0.56), the advantage would tilt in their favor, and the XRP/USDT pair could climb to the resistance at $0.67. On the other hand, the bears will try to protect the 50-day SMA and pull the price back below the 20-day EMA. If they succeed, the pair may drop towards the crucial support zone between $0.46 and $0.41.
Toncoin Price Analysis:
Toncoin rose above the moving averages on May 3, indicating strong buying at lower levels. The relief rally may face selling in the zone between the 50% Fibonacci retracement level of $6.13 and the 61.8% retracement level of $6.49. If the price turns down from this zone, the bears will attempt to strengthen their position by pulling the TON/USDT pair below the moving averages, potentially pushing the price to the pivotal support at $4.72. However, if the price breaks above $6.49, it would signal sustained buying at higher levels and open the doors for a possible rise to $7.24 and then $7.67.
Dogecoin Price Analysis:
Dogecoin’s recovery is facing selling pressure at the 50-day SMA ($0.17), but the fact that the price has not slipped below the 20-day EMA ($0.15) gives a slight advantage to the bulls. If the price remains above the 20-day EMA, the bulls may attempt another test of the 50-day SMA. The repeated retesting of a resistance level tends to weaken it, and if the level is taken out, the DOGE/USDT pair could start a rally to $0.21. However, if the bears quickly push the price back below the 20-day EMA, it would suggest that they remain active at higher levels, and the pair may drop to $0.12.
Cardano Price Analysis:
Cardano once again turned down from the 20-day EMA ($0.47) on May 6, indicating aggressive defense by bears. The bulls are trying to defend the $0.46 support because a breakdown below this level could lead to a retest of the crucial support at $0.40. Buyers are expected to fiercely defend this level. On the contrary, if the price turns up from the current level and breaks above the 20-day EMA, it would indicate a reduction in selling pressure. The ADA/USDT pair could then attempt a rally to the overhead resistance at $0.57.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.