Bitcoin (BTC) has been trading within a range for several days, indicating a battle between the bulls and bears. Mosaic Asset, a trading firm, believes that “loosening financial conditions” could lead to a risk-on trade and a potential breakout for Bitcoin to the upside.
Ki Young Ju, the founder and CEO of CryptoQuant, mentioned in a post on X that Bitcoin remained near $10,000 for six months in 2020 with high on-chain activity before surging to $64,000 in 2021. A similar trend is being observed in 2024, with approximately $1 billion added daily to new whale wallets, likely for custody purposes.
Despite the absence of a breakout, Bitcoin has seen an 11% rally in May, marking the first positive monthly performance in May after three years of negative performance. This positive momentum gives buyers the opportunity to extend the bullish performance into June.
Now, let’s analyze the charts of the top 10 cryptocurrencies to see if buyers can defend the support levels in Bitcoin and altcoins.
Bitcoin price analysis:
Bitcoin rebounded from the support line of the symmetrical triangle pattern on May 30, but the bulls failed to sustain the higher levels. To gain the upper hand, the bulls will need to push the price above the triangle, which could trigger a rally to the overhead resistance at $73,777. However, the bears are expected to put up a strong defense at this level. On the other hand, if the price breaks below the support line, it will indicate that the bears have taken control, potentially causing the BTC/USDT pair to fall to $64,600 and eventually to the crucial support at $59,600. The bulls are likely to buy in the zone between $56,550 and $59,600.
Ether price analysis:
Ether (ETH) is attempting to bounce off the breakout level of $3,730, indicating that the bulls are defending this level. The rising 20-day EMA ($3,559) and the positive RSI suggest that the bulls have the upper hand. If buyers manage to propel the price to the stiff overhead resistance at $4,100, it will open the path for a rally to $4,868. However, if the price breaks below $3,730, it will weaken the positive momentum, shifting the advantage in favor of the bears. The bears may then pull the price below the 20-day EMA.
BNB price analysis:
BNB has been gradually declining towards the uptrend line, which is expected to act as strong support. If the price rebounds strongly from this line, the bulls will attempt to push the BNB/USDT pair to the overhead resistance at $635. A break above this level would complete an ascending triangle pattern, with a target of $775. Conversely, if the price breaks below the uptrend line, it will invalidate the bullish pattern and could lead to selling pressure, causing the pair to fall to $536 and eventually to the vital support at $495.
Solana price analysis:
Solana has failed to start a strong bounce from the 20-day EMA, indicating a lack of demand at current levels. The bears will try to strengthen their position by pushing the price below $162, which could lead to a drop towards $140. While there is minor support at the 50-day SMA ($152), it is unlikely to hold. On the other hand, if the price turns up and rises above $174, it will suggest that the bulls are trying to retain the advantage. The pair could then climb to $189 and eventually to $205.
XRP price analysis:
The bears are pulling XRP below the moving averages, with the next likely stop being the support line. However, the bulls have defended this line on three previous occasions, indicating that they will try to do so again. If the price rebounds from the support line with strength, the XRP/USDT pair could rise to $0.57. A break and close above this level would complete the ascending triangle pattern, with a target of $0.68. Conversely, if the price breaks below the support line, it will suggest that the bulls have given up, potentially causing the pair to fall to the critical support at $0.46.
Dogecoin price analysis:
The bulls are struggling to keep Dogecoin above the moving averages, indicating selling pressure from the bears. If the price falls below the 50-day SMA, the DOGE/USDT pair could decline to $0.14. This level may act as a floor, but a break below it could extend the slide to the crucial support at $0.12. On the other hand, if the price rebounds from $0.14, it will signal demand at lower levels and the pair may consolidate between $0.14 and $0.18. A break above $0.18 would open the doors for a rally to $0.21.
Toncoin price analysis:
Toncoin continues to trade near the moving averages, indicating a lack of aggressive buying or selling. The range-bound action between $4.72 and $7.67 is likely to continue for a few more days. If the price breaks below $6, the advantage could tilt in favor of the bears, potentially causing the TON/USDT pair to drop to $4.72. On the upside, a break above $6.73 would suggest that the bulls are back in control, with the pair potentially climbing to $7.67.
Shiba Inu price analysis:
The failure of the bulls to push Shiba Inu above the overhead resistance of $0.000030 has resulted in a pullback to the 20-day EMA. If the price rebounds from the moving averages, the bulls will once again attempt to drive the SHIB/USDT pair above $0.000030. If successful, the pair could rally to $0.000033 and then to $0.000039. However, if the price breaks below the support line, it will signal a potential comeback by the bears, with the pair potentially falling to $0.000018.
Cardano price analysis:
Cardano has continued to decline and has reached the support line of the symmetrical triangle pattern. The bulls are expected to aggressively defend this level. If the price bounces off the support line and rises above the moving averages, it will indicate that the ADA/USDT pair may remain within the triangle for some time. A break and close above the triangle could trigger a strong upward move towards $0.62. Conversely, if the price breaks below the support line, it will suggest that the uncertainty has resolved in favor of the bears. This could initiate a downward move towards the next support at $0.35.
Avalanche price analysis:
Avalanche has been trading within a range between $29 and $40, indicating a balance between supply and demand. If the price falls below the 50-day SMA, the bears may attempt to pull the AVAX/USDT pair towards the strong support at $29. This level is likely to attract strong buying, keeping the pair within the range for some time. The next directional move is expected after a breakout above $42 or below $29. A breakout above $42 could lead to a surge towards $50, while a break below $29 could cause the pair to fall to $20.
Please note that this article does not provide investment advice or recommendations. It is essential to conduct thorough research and analysis before making any investment decisions.