Bitcoin (BTC) recovered sharply after falling close to its real value, $ 24,000, on May 12, indicating that some bulls went against the herd and bought the dip. According to the CryptoQuant chain analysis platform, exchange rates fell by more than 24,335 Bitcoin on May 11 and 12, indicating that bulls may have started bottom fishing.
However, macroeconomic investor Raoul Pal is not sure the bottom has been reached. In an exclusive interview with Cointelegraph, Pal said that if stock markets witnessed a surrender phase, cryptocurrencies are likely to fall before the bottom. He expects the current bear phase to end after the US Federal Reserve stops raising interest rates.
Bear markets are known for sharp relief rallies, which are used to lighten long positions or start short positions. The price eventually drops and sets a new low. The bottoms are only confirmed afterwards. Therefore, investors might consider accumulating in stages rather than going through everything in the bear market.
Now investors want to know what significant costs can act as resistance. Let’s look at the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin jumped to $ 26,700 on May 12, forming a Doji candlestick pattern. This suggests that the sales pressure may be decreasing. The recovery picked up on May 13 and pushed the psychological price up to $ 30,000.
Relief efforts could face close to $ 33,000 and back to the 20-day exponential average (EMA) ($ 34,903). If the price drops from the cost resistance, the bears will make another attempt to lower the BTC / USDT pair below $ 26,700 and continue to fall.
If they succeed, sales could accelerate and the pair could drop to $ 25,000 and later to $ 21,800.
Contrary to this assumption, if the bulls capture the next drop above $ 28,805, it will indicate an accumulation of dips. It could increase the outlook for a break over the 20-day EMA. If that happens, the pair could rise to a 50-day simple moving average (SMA) ($ 40,210).
ETH / USDT
Ether (ETH) dropped below the $ 2,159 support on May 11th and later dropped below the $ 2,000 psychological level on May 12th. The bulls bought the dive for $ 1,800, which has started a light rise.
Buyers will now try to push the price above the breakdown level to $ 2,159. If successful, the ETH / USDT pair could pick up momentum and reach 20 days of EMA ($ 2,554). This is an important point to watch because the pause and closing above it will indicate that the decline could be complete.
Contrary to this assumption, if the price falls from the current level or the 20-day EMA, it will indicate that the attitude remains negative and traders are selling close to the resistance level. The Bears will then again try to sink the pair below $ 1,700.
BNB / USDT
BNB fell sharply on May 12, but the long tail of the candlestick of the day shows that bulls aggressively defended the support at $ 211. This started a relief rally that has reached the $ 350 to $ 320 resistance range.
If a bull runs the price above $ 350, it will indicate that the reduction may be over. Recovery could then be $ 413. Such a move could suggest that the BNB / USDT pair could hold on for a long time between $ 211 and $ 692.
Contrary to this assumption, if prices fall from the air resistance zone, it will indicate that bears are active at higher levels. The price could then gradually drop to a significant support of $ 211. Bears will have to lower their prices below this level to start a new declining trend that could reach $ 175 and later $ 150.
XRP / USDT
Ripple (XRP) dropped to $ 0.33 on May 12 when the purchase was announced. The bulls are trying to recover which is likely to meet stiff opposition on a psychological level at $ 0.50.
If the price drops from $ 0.50, the bears will again try to pull the XRP / USDT pair to $ 0.33. This is an important point for the bulls to protect because a break below it could lead to a reduction to $ 0.24.
On the other hand, if buyers push the price above $ 0.50, the pair could rise to a 20-day EMA ($ 0.56). Breaking and closing over this level will indicate that the bulls are back in the game. The pair could then rise to 50 days SMA ($ 0.70).
ADA / USDT
Cardano (ADA) fell to $ 0.40 on May 12, dragging RSI into the highly volatile zone. Buyers bought this dip and are trying to start a relief meeting.
The ADA / USDT pair could rise to the breakdown level at $ 0.74, which is an important level to watch. If the price drops from this resistance, it will indicate that the bears have not yet given up and they will be sold on the rally. The pair could then test strong support at $ 0.40.
Contrary to this assumption, if a bull pushes the price above $ 0.74, it will indicate that the bears may be losing control. The pair could then reach a psychological level of $ 1 as the bears are expected to re-establish a strong defense.
SOL / USDT
Solana (SOL) has been in a sharp downturn in recent days. The price dropped to $ 37 on May 12, which pulled the RSI deep into the volatile territory. This started the emergency tournament on May 13th.
The bulls are likely to sell in the area between the 38.2% Fibonacci recovery level at $ 59 and the 50% retracement level at $ 66. If the price drops from this area, the bears will try to hold back the declining trend by pulling the pair down below $ 37. If they can pull it off, the SOL / USDT pair could drop to $ 32.
Contrary to this assumption, if the price breaks above $ 66, the recovery could reach the breakdown level of $ 75. The bulls must overcome this obstacle to indicate that declining trends may be coming to an end.
DOGE / USDT
Dogecoin (DOGE) fell to $ 0.06 on May 12, but the positive thing is that the bulls bought this dip. This started a light rally that reached close to a breakdown level of $ 0.10.
The long wake of the May 13 candlestick indicates that the bears are spending $ 10 aggressively. If the price drops from this resistance, the bears will try to hold back the declining trend by pulling the DOGE / USDT pair down to $ 0.06. If they succeed, the next stop could be $ 0.04.
Otherwise, if a bull runs the price above $ 0.10, the pair could rise to a 20-day EMA ($ 0.12). This is an important point to observe as the pause and closure above it could indicate the beginning of a stronger recovery.
Connected: 3 reasons why Cardano can sink further even though the ADA price has jumped by 58%
DOT / USDT
Polkadot (DOT) has been in a downturn in recent days. Buyers intervened to stop the decline near strong support at $ 7 on May 12, as evidenced by the long tail of the candlestick of the day.
Buyers will now try to keep the price above the breakdown level of $ 10.37. If successful, the DOT / USDT pair could rise to a 20-day EMA ($ 13.68). This stage is likely to attract strong sales of the bears. If the second decline stops at $ 10.37, it will indicate that the decline may be weakening.
On the other hand, if the price drops significantly from the current level or the 20-day EMA, it will increase the possibility of a reconsideration of $ 7. Below this level, the reduction could be as high as $ 5.
AVAX / USDT
An avalanche (AVAX) broke significant support at $ 32 on May 11 and bears tried to hold back the decline on May 12. However, the long tail of the candlestick of the day indicates a strong buy at lower levels.
The bulls have pushed the price above the breakdown level to $ 32, which is the first sign of strength. If the AVAX / USDT pair holds above $ 32, the bulls will try to push the price up to the cost of $ 51. The bears are likely to defend this level of power.
Otherwise, if the price drops from the 38.2% Fibonacci retracement level to $ 41.09, it will indicate that the attitude remains negative and the bears are selling on the ralls. The couple could then again try strong support at $ 32 and later $ 23.
SHIB / USDT
Shiba Inu (SHIB) fell below the psychological level of $ 0.000010 on May 12, but the long tail of the candlestick of the day suggests buying at lower levels. This led to a recovery on 13 May.
The SHIB / USDT pair could rise to a breakdown level of $ 0.000017, which is likely to attract strong selling bears. If the price drops from that, the bears will make another attempt to sink and keep the pair below $ 0.000010.
On the other hand, if bulls run the price above $ 0.000017 and the 20-day EMA ($ 0.000018), this will indicate that markets have declined lower levels. The pair could then rise to 50 days SMA ($ 0.000023).
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph. Every investment and business involves risk. You should do your own research when making a decision.
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