US stock markets rose sharply on May 25 and 26, but Bitcoin (BTC) and altcoins have not followed a similar path. This suggests that traders are not sure that cryptocurrencies have yet to bottom out.
On-chain analytics firm Glassnode said the number of Bitcoin whales was declining and on May 27, the measurement fell to its lowest level since July 2020.
On May 24, Miller Value Partners founder and chief investment officer Bill Miller backed Bitcoin investment, calling it a “financial disaster insurance policy.”
Commenting to its clients on May 25, JPMorgan said that the collapse of Bitcoin looks like capitulation and that they anticipate that Bitcoin and cryptocurrencies will rise. The bank’s analysts estimate that the fair value of Bitcoin is 38,000 US dollars, which is about 30% higher than now.
Could Bitcoin follow US stock markets higher or will it disconnect and continue to die at a lower level? Let’s look at the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin fell to a strong support of $ 28,630 on May 26, but the bulls could not sustain lower levels. The long tail of the candlestick of the day shows that the bulls bought the dip from a hard attachment.
The bulls are again trying to defend the support at $ 28,630, which is an important point to keep an eye on. If the price rises from the current level and breaks above the 20-day exponential moving average (EMA) ($ 30,868), it will indicate that the BTC / USDT pair may have bottomed out. The pair could then rise to a 50-day simple moving average (SMA) ($ 35,721).
However, if prices fall from the current level or cost resistance, it will indicate a lack of demand at higher levels. That could increase the possibility of a break below $ 28,630. If that happens, the couple could try their hand at $ 26,700 again. A break and closing below this level could increase sales and the pair could fall towards $ 20,000.
ETH / USDT
Ether (ETH) dipped and closed below the upwelling line on May 25, indicating that the bears were trying to regain control. Sales picked up on May 26 and the price fell below the lowest on May 12 per day to $ 1,800.
The Bears are trying to defend important support at $ 1,700, but the rebound lacks momentum. This indicates that bulls are not buying hard on the support. It could boost the bears that could try to sink and keep the price below $ 1,700. If they succeed, the ETH / USDT pair could drop to $ 1,300.
On the other hand, if the bulls manage to defend the support at $ 1,700, the pair could start to rise towards $ 2,159. That could keep the pair in the range of $ 2,159 to $ 1,700 for a few more days.
BNB / USDT
The long wake of the BNB May 25 candlestick shows that the bears are selling on rallies approaching the critical resistance ceiling at $ 350. The sale continued on May 26 and the price went below the 20 day EMA ($ 320).
There is minor support at $ 286 as the bulls will try to stop the decline. If it succeeds, it will indicate that attitudes have changed from selling the rally to buying dives. The bulls will then again try to push the price up to $ 350.
Otherwise, if the price drops below $ 286, it will indicate that the aggressive bull, which may have been trapped after buying the offense over $ 320, may be leaving its position. That could lower the BNB / USDT pair to $ 260.
XRP / USDT
Ripple (XRP) fell below immediate support at $ 0.38 on May 26, but the long tail of the candlestick of the day indicates strong buy at lower levels. Buyers will try to push the price down the line.
If the price drops from the drop line, the Bears will again try to lower the XRP / USDT pair below $ 0.38. If that happens, the pair could drop to a low of $ 0.33 on May 12, where the bulls are likely to develop strong defenses. Bears must reduce the price of this support to indicate that declining trends will resume.
On the other hand, if a bull pushes the price over a falling line, the pair could rise to a 20-day EMA ($ 0.44). This level may again act as a rigid resistance, but if the bulls overcome this obstacle, the recovery could reach a psychological level of $ 0.50.
ADA / USDT
Cardano (ADA) traded between $ 0.49 and $ 0.56 on May 26. The bulls are trying to defend the minor support at $ 0.46, but if they fail, the reduction could reach $ 0.40.
Rising averages and RSIs near the volatile region suggest that bears are at the helm. If bears sink and keep the price below $ 0.40, sales could pick up momentum and the ADA / USDT pair could fall to $ 0.33.
On the other hand, if the price returns from the current level or support, it will indicate a strong buy at lower levels. The bulls will then try to drive the price over the 20-day EMA ($ 0.56). If successful, the pair could rise to $ 0.61 and later to $ 0.74.
SOL / USDT
Solana (SOL) fell below immediate support at $ 47 on May 26, indicating that traders who may have bought at lower levels are closing their position. This opens the door for a possible reduction in critical support to $ 37.37.
If the price goes back from $ 37.37, buyers will try to push the price to 20 days EMA ($ 55). This is an important point for bears to defend because the break and closure above it will indicate that the SOL / USDT pair may have bottomed out. The pair could then try to raise the air resistance to $ 75.
Otherwise, if bears drop below $ 37.37, it will indicate that declining trends will resume. The pair could then extend their cut to the next support of $ 32.
DOGE / USDT
Dogecoin (DOGE)’s trading in narrow areas closed on May 26 and bears reduced the price below $ 0.08. This indicates that supply exceeds demand.
If bears maintain a price below $ 0.08, the DOGE / USDT pair could fall to significant support at $ 0.06. Since this point had acted as strong support on May 12, the bulls could once again try to defend it. If held higher, the pair could climb toward a 20-day EMA ($ 0.09).
Another possibility is that if a bull pushes the price back above $ 0.08, it will indicate demand at lower levels. Buyers will then try to push the price towards 20 days of EMA. Fractures and closures above this resistance will indicate that the bears may be losing control. The pair could then reach a psychological level of $ 0.10.
Connected: 3 reasons why Bitcoin is regaining its cryptocurrency market dominance
DOT / USDT
The failure of Polkadot (DOT) to climb and maintain above the breakdown level of $ 10.37 provoked sales among traders. The Bears cut the price below immediate support to $ 9.22 on May 26, but are struggling to maintain lower scores.
The price immediately took over with the support at $ 8.56 and the bulls are trying to get rid of the cost of a 20 day EMA ($ 10.88). Failure to do so will indicate that the downturn may be weakening.
Contrary to this assumption, if the price drops again from the air resistance, the bears will try to pull the DOT / USDT pair down to $ 8.56. If they do, the next stop could be $ 7.30.
The bulls are likely to defend this level of aggression, but if they fail in their efforts, the pair could begin the next step of the downward trend.
AVAX / USDT
Avalanche (AVAX) continued to decline and fell to a significant support of $ 23.51 on May 26th. This indicates that declining trends have resumed.
Although declining moving averages are in favor of the bears, the RSI in the ceded territory points to aid or concentration in the near future. If the price turns up and rises above $ 23.51, it could catch a few aggressive bears, leading to a short squeeze. That could push the AVAX / USDT pair into a 20-day EMA ($ 34).
Otherwise, if bears keep the price below $ 23.51, the sale could pick up momentum and the pair could turn down psychological support at $ 20.
SHIB / USDT
Shiba Inu (SHIB) continues to be under pressure. While bulls are defending support at $ 0.000010, the rebound lacks strength. This indicates weak demand at the current level.
The bears will try to bring the price down below $ 0.000010 and if they succeed, the SHIB / USDT pair could reject significant support at $ 0.000009. This is an important point to keep in mind because the pause and closure below it could indicate that declining trends are resuming. The pair could then fall towards $ 0.000007.
Alternatively, if the $ 0.000010 level holds, the pair could rise to a 20-day EMA ($ 0.000013). This level could again act as a resistance, but if crossed, the upward movement could be $ 0.000017.
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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