The Dow Jones industrial average has fallen for eight consecutive weeks, the first such loss since 1923. On May 20, the S&P 500 briefly fell in a bear market area, indicating that traders continued to sell risky assets for fear of recession.
Due to the tight correlation with the US stock market, Bitcoin (BTC) has been under pressure for many weeks. The bulls are trying to push Bitcoin higher over the weekend and avert even longer losses.
Bitcoin’s performance in the first five months has been the worst since 2018, indicating that sellers are at the helm. However, after a few weeks of weakness, cryptocurrencies could be on the verge of a bear market rally.
What are the important points that can indicate the beginning of a sustained recovery? Let’s study the charts of the top 5 cryptocurrencies that could perform better in the near future.
BTC / USDT
Bitcoin regained significant support at $ 28,630 on May 20, indicating a strong buy near this level. The bulls are trying to push the price over the falling line, which could be the first indication that the selling pressure could be decreasing.
Above the downtrend line, the BTC / USDT pair could rise to a 20-day exponential moving average ($ 31,887). The bears are likely to defend this level of power. If the price drops from the 20-day EMA, the Bears will once again try to sink the pair below $ 28,630.
If they succeed, the pair could drop to $ 26,700. This is an important point to keep in mind because the pause and closing below it could open the door for a drop to $ 25,000 and then to $ 21,800.
On the other hand, if buyers set the price above the 20-day EMA, the pair could try to rise to the 61.8% Fibonacci recovery level at $ 34,823. If this level is increased, the pair could climb to a 50-day simple running average ($ 37,289).
A four-hour graph shows that the price is squeezing between the drop line and $ 28,630. 20-EMA and 50-SMA have leveled off and the relative strength index (RSI) is just above the midpoint, indicating a balance between supply and demand.
This balance could benefit buyers if they push and keep prices above the falling line. If that happens, the pair could start their northward march toward 200-SMA.
On the contrary, if the price drops from the current level, the Bears will try to sink the pair below $ 28,630 and gain the upper hand.
BNB / USDT
Binance Coin (BNB) improved significantly from significant support at $ 211 and has reached cost resistance during the 20 day EMA ($ 323). This is an important point for bears to guard against breaking and closing above it could indicate that the bottom may be in place.
Above the 20-day EMA, the BNB / USDT pair could rise to $ 350 and then to the 50-day SMA ($ 376). This level could again act as a rigid barrier, but if the bull shot the price over it, the pair could reach 200 days SMA ($ 451).
Contrary to this assumption, if the price drops significantly from the 20-day EMA, it will indicate that the bears have not yet given up and they will continue to sell at a higher level. The pair could then drop to $ 211. If the price returns from this level, the pair could strengthen between $ 211 and $ 320 for a few days.
The bulls are trying to push the price above the air resistance at $ 320. If successful, the pair could rise to $ 350. The bears are likely to defend this level of cruelty. If the price drops from $ 350, the pair could fall back to $ 320.
If the price recovers from this level, the pair could be in the range of $ 320 to $ 350 for some time. Increased momentum could pick up over 200-SMA and the pair could rise to $ 380 and later to $ 400.
However, if the price drops from the current level, the pair could drop to $ 286 and then to $ 272.
XMR / USDT
Monero (XMR) fell below strong support at $ 134 on May 12, but the Bears could not sustain lower scores. This indicates an aggressive purchase of dips. The price has improved significantly in the 20-day EMA ($ 179).
If bulls push and maintain prices above the 20 day EMA, the XMR / USDT pair could rise to the air resistance range between 200 days SMA ($ 202) and 50 days SMA ($ 212). The bears are expected to develop strong defenses in this area
If prices fall from this area but bulls stop a subsequent drop in the 20-day EMA, it will indicate a possible evolutionary change. On the other hand, if the price drops from the current level, the bears will try to pull the pair up to $ 150 and then to $ 134.
A four-hour graph shows the formation of higher depressions and higher elevations. The bears tried to reduce the price below 50-SMA but the bulls saved the point with good results. This indicates a change in attitude from selling rallies to buying dips.
The pair could then congregate in the 200-SMA where the bears could provide strong resistance. If a bull overcomes this hurdle, the pair could rise to $ 225. Contrary to this assumption, if the price falls and breaks below 50-SMA, the pair could fall to $ 150. A break below this level could challenge strong support at $ 134
Connected: Dollar cost average or lump sum: Which Bitcoin policy works best regardless of price?
ETC / USDT
Ethereum Classic (ETC) dropped sharply from $ 52 on March 29 to $ 16 on May 12. The bulls are trying to start a recovery that could meet resistance at the 20-day EMA ($ 23).
If the price drops from the 20-day EMA, the Bears will once again try to hold back the downward trend by pulling the ETC / USDT pair down for significant support at $ 16.
On the contrary, if buyers push the price over the 20-day EMA, it will indicate the beginning of a stronger upsurge. A positive difference in the RSI also indicates the possibility of recovery in the near future. The pair could then rise to a 38.2% Fibonacci retracement level at $ 30 where the bears could have strong resistance.
The price has been between $ 19 and $ 23 for some time. This suggests that the bulls are trying to form a higher depression but the bears continue to be a strong challenge at higher levels. Flattening 20-EMA and 50-SMA give neither bulls nor bears an obvious advantage.
If buyers run the price above $ 23, it will suggest the start of a new update. The pair could first rise to 200-SMA and then to $ 33. Otherwise, if the price drops and drops below $ 19, the bears will gain the upper hand. They will then try to sink the pair for $ 16.
MANA / USDT
Decentraland (MANA) rejected the 20-day EMA ($ 1.24) on May 16, but a positive sign that the bulls did not allow the price to stay below the psychological level of $ 1.
Buyers will once again try to push the price over the 20-day EMA. If successful, the MANA / USDT pair could rise to 50 days SMA ($ 1.72). The bears could get stiff resistance again at this stage, but if the bulls get rid of this obstacle, the pair could start their journey north towards 200 days SMA ($ 2.72).
Contrary to this assumption, if the price drops below $ 1, the bears will try to plunge the pair into significant support at $ 0.60. Fracture and closure below this level could trigger the next part of the downturn.
The pair is stuck between $ 0.97 and $ 1.36, which indicates that bulls are buying the dips under $ 1 and the bears are selling on the rally. 20-EMA and 50-SMA have flattened out, indicating that compression could continue for some time.
If buyers push the price above 50-SMA, the pair could rise in resistance between $ 1.36. Constant momentum could take over if buyers overcome this obstacle. On the other hand, bears could gain the upper hand if prices fall and fall below the $ 0.97 support level.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph. Every investment and trading business involves risk, you should conduct your own research when making a decision.
Mail Bonus – #Top #Currencies #Watch #Week #BTC #BNB #XMR #MANA