Bitcoin (BTC) is currently experiencing a battle between bullish and bearish forces. Despite a recent outflow of $15.7 million on May 7, following significant inflows of over $595 million into spot Bitcoin exchange-traded funds (ETFs) on May 3 and May 6, long-term optimist Anthony Pompliano remains confident in Bitcoin’s future. Pompliano noted that Bitcoin’s 200-day simple moving average has reached a new all-time high above $50,000, indicating a bullish long-term trend.
Institutional investors continue to invest in spot Bitcoin ETFs, undeterred by the sideways price action. Quantitative trading firm Susquehanna International Group reported acquiring over $1 billion worth of shares in Bitcoin spot ETFs in the first quarter of 2024.
To determine if buyers can protect support levels in Bitcoin and altcoins to prevent a collapse, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis:
BTC’s recovery encountered resistance at the 50-day simple moving average ($65,829) on May 6, indicating strong defense by the bears. The BTC/USDT pair could potentially decline to $59,600 and later to $56,500, which is a key support level to watch. If the price falls below $56,500, it may reach the 61.8% Fibonacci retracement level of $54,298 and then $50,000. On the other hand, if the bulls manage to push the price above the 50-day SMA, it could gain momentum and rally to the overhead resistance at $73,777.
Ether Price Analysis:
Ether (ETH) is facing strong resistance between the 20-day exponential moving average ($3,116) and the descending channel pattern’s resistance line. If the bears succeed in pulling the price below the vital support at $2,850, the ETH/USDT pair could enter a downtrend towards the channel’s support line. However, if the price bounces back from $2,850, it suggests strong support from the bulls. To signal a potential trend change, the bulls need to drive the price above the resistance line.
BNB Price Analysis:
BNB has been trading near the moving averages, reflecting uncertainty about the next directional move. If the price remains below the moving averages, the bears may push the BNB/USDT pair down to $536 and then to the solid support at $495. A bounce off this level could extend the range-bound action. However, a breakthrough above $635 would indicate bullish control and potentially lead to a rally towards the next target at $692.
Solana Price Analysis:
Solana has been consolidating between $162 and $126, signaling indecision between the bulls and bears. The flat 20-day EMA ($146) and the RSI near the midpoint indicate a lack of advantage for either group. If the price falls below the 20-day EMA, the bears will aim for $126, and a break below this support could trigger a downtrend towards the psychological support at $100. On the other hand, a break above $162 would suggest the end of the corrective phase and could lead to a rally towards $185 and $205.
XRP Price Analysis:
XRP has been trading within a tight range between $0.57 and $0.46. If the price remains below the 20-day EMA, there is a higher chance of a drop to $0.46. However, if the price stays above the 20-day EMA, the XRP/USDT pair could rise to $0.57. To seize control, the bulls need to sustain the price above this resistance and potentially target $0.67.
Dogecoin Price Analysis:
Dogecoin turned lower from the 50-day SMA on May 6 and fell below the 20-day EMA on May 7. The bears will attempt to push the price towards the crucial support at $0.12, but solid buying is expected at this level. If the price rebounds, the DOGE/USDT pair may continue to trade within the range of $0.12 and the 50-day SMA. To open the doors for a possible rally to $0.21, buyers must overcome the barrier at the 50-day SMA. However, a break below $0.12 could complete a bearish head-and-shoulders pattern and trigger a downtrend.
Toncoin Price Analysis:
Toncoin turned down from the 50% Fibonacci retracement level of $6.13, indicating selling pressure on relief rallies. The balance between supply and demand is reflected in the flattish 20-day EMA ($5.64) and the RSI near the midpoint. If the bulls rebound with strength, they may attempt to clear the overhead hurdle at the 61.8% Fibonacci retracement level of $6.49, suggesting the end of the corrective phase. On the other hand, if the price falls below the moving averages, the bears may push the TON/USDT pair towards the solid support at $4.72.
Cardano Price Analysis:
Cardano is caught between the 20-day EMA and the support line, indicating an upcoming breakout. However, it is difficult to predict the direction with certainty, so it’s better to wait for a clear directional move before making significant bets. If the price breaks above the 20-day EMA, the ADA/USDT pair could rise to the 50-day SMA and later to $0.57. Conversely, if the price turns down and breaks below the support line, it will signal bearish control, potentially pushing the pair to $0.40 and $0.35.
Avalanche Price Analysis:
Avalanche turned down from the overhead resistance at $40 on May 6, indicating bearish activity at higher levels. The negative RSI and the flattish 20-day EMA point to a possible drop to the range support at $29. A bounce from this level could keep the AVAX/USDT pair within the range for a longer period. To favor the bulls, the price needs to break and sustain above $40. Conversely, a break below $29 would indicate bearish control, potentially leading to a dive towards the pattern target of $18.
Shiba Inu Price Analysis:
Shiba Inu turned down from the 50-day SMA on May 6, suggesting strong resistance from the bears. The recent price action has formed a symmetrical triangle pattern, indicating indecision between the bulls and bears. A breakdown from the triangle would give the bears an advantage, potentially pushing the SHIB/USDT pair to the 78.6% Fibonacci retracement level of $0.000017. However, if the price bounces off the triangle’s support line, it suggests demand at lower levels. A break and close above the triangle would signal bullish control.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.