The US equity markets rallied strongly on May 25th and 26th, but Bitcoin (BTC), and other altcoins have not experienced a similar rally. This indicates that traders don’t believe the crypto markets are at their bottom yet.
Glassnode, an on-chain analytics company, stated that the number Bitcoin whales is decreasing and that it fell to its lowest level since July 2020.
Bill Miller, chief investment officer at Miller Value Partners and founder of Bitcoin investing, endorsed Bitcoin investing on May 24th. He called it an “insurance policy for financial catastrophe.”
Everyday cryptocurrency market performance. Source: Coin360
JPMorgan stated that Bitcoin’s fall is like capitulation in a May 25 note to clients. They expect the crypto markets and Bitcoin to rise. Analysts at JPMorgan believe that Bitcoin’s fair price is $38,000. This is approximately 30% more than its current value.
Will Bitcoin be able to follow the U.S. equity markets higher? Or will it continue to languish at lower levels and decouple? Let’s look at the charts of the top 10 cryptocurrencies to see what happens.
Bitcoin fell below $28,630 support on May 26, but the bulls couldn’t sustain lower levels. The bulls bought the dip aggressively, as evidenced by the long tail of the candlestick.
Daily chart of BTC/USDT Source: TradingView
The bulls are trying to defend $28,630 support, which is a crucial level to watch. The price could rise above the current level, breaking above the 20-day exponentially moving average (EMA) of $30,868, which would indicate that the BTC/USDT exchange has reached its bottom. The price could rally to the 50 day simple moving average (SMA), which is $35,721.
However, a decrease in the price from the overhead resistance or current level will indicate a lack of demand at higher prices. This could increase the chance of the pair breaking below $28,630. The pair may retest the critical level of $26,700 if that happens. If the pair closes below this level, it could increase selling and lead to a plunge towards $20,000.
Ether (ETH), which fell below the uptrend line, on May 25, suggested that bears were trying to reestablish their dominance. On May 26, selling momentum picked up and the price fell below the intraday low of $1,800 on May 12.
Daily chart of ETH/USDT Source: TradingView
While the bears are trying hard to defend $1,700 as a crucial support, the rebound is lacking momentum. This indicates that bulls aren’t buying aggressively at the support. This could encourage bears to try to lower the price and keep it below $1,700. The ETH/USDT pair may plummet to $1300 if they succeed.
If bulls are able to defend $1,700 support, the pair may begin a move toward $2,159. This could mean that the pair will remain range bound for a few more days between $2,159 & $1,700.
BNB’s May 25 candlestick showed a long wick, indicating that bears are selling at rallies close to the $350 overhead resistance. On May 26, the selling continued and the price fell below the 20-day EMA (320).
Daily chart BNB/USDT TradingView
The bulls are expected to attempt to stop the decline at $286, where there is minor support. If they succeed, it will indicate that sentiment has changed from buying on rallies to selling on dips. The bulls will again push the price towards $350.
If the price falls below $286, it could indicate that aggressive bulls who bought the $320 break may be out of their positions. This could bring the BNB/USDT exchange to $260.
Although Ripple (XRP), broke below $0.38 as the immediate support on May 26, the candlestick’s long tail suggests that strong buying is possible at lower levels. The buyers will push the price towards the downtrend line.
Daily chart of XRP/USDT Source: TradingView
The bears will attempt to bring the XRP/USDT price below $0.38 if the price moves away from the downtrend line. The pair could fall to $0.33 on the intraday of May 12, where the bulls will likely mount a strong defense. To signal the resumption or decline of the downtrend, the bears will need to push the price below the support.
The other possibility is that bulls push the price higher than the downtrend line and the pair could rally to $0.44. Although this level could act as stiff resistance, bulls can overcome it to make the price rise to $0.50.
Cardano’s tight-range trading between $0.49 & $0.56 was resolved to the downside by ADA on May 26. The bulls are trying to defend $0.46, but if they fail, it could lead to a drop to $0.40.
Daily chart ADA/USDT Source: TradingView
The RSI close to the oversold territory and the downsloping moving Averages suggest that bears have the upper hand. If bears continue to sink below $0.40, selling momentum could increase and the ADA/USDT exchange may fall to $0.33.
However, strong buying at lower levels will be encouraged if the price bounces from the current level of support. The bulls will attempt to push the price higher than the 20-day EMA ($0.56). The pair could rally to $0.61, and then to $0.74 if they succeed.
Solana (SOL), broke below the $47 support on May 26, suggesting that traders who might have bought at lower levels may be closing their positions. This could lead to a drop to $37.37, which is crucial.
Daily chart of SOL/USDT Source: TradingView
The buyers will try to push the price up to the $20-day EMA ($55) if the price recovers from $37.37. The bears must defend this level as a break or close below it could indicate that the SOL/USDT price has bottomed. The pair may then attempt to rally to $75 overhead resistance.
Alternativly, bears could sink below $37.37 to signal a resumption in the downtrend. This could lead to the pair’s decline reaching $32.
Dogecoin (DOGE), tight-range trading ended to the downside on May 26, and bears pulled down the price below $0.08. This indicates that demand is greater than supply.
Daily chart of DOGE/USDT Source: TradingView
The DOGE/USDT pair may drop to $0.06 if bears keep the price below $0.08. This level was a strong support for bulls on May 12. Bulls might try to defend it again. The pair could reach the $20 EMA ($0.09) if the level holds.
There is another possibility that bulls will push the price higher than $0.08 to suggest that there is more demand at lower levels. The buyers will attempt to push the price towards the 20-day EMA. If the price breaks or closes above this resistance, it could signal that bears are losing their grip. The psychological level of $0.10 could be reached by the pair.
Related: Why Bitcoin is regaining its crypto-market dominance
Traders were able to sell Polkadot (DOT) because it failed to climb above the $10.37 breakdown level. Although the bears managed to pull the price below $9.22 on May 26, they are still struggling to maintain the lower levels.
Daily chart of DOT/USDT Source: TradingView
The price recovered from $8.56 as immediate support. Bulls are now trying to overcome the hurdle at the 20 day EMA ($10.88). It will indicate that the downtrend is weakening if they succeed.
Contrary to the assumption, bears will attempt to lower the DOT/USDT price pair below $8.56 if the price falls from the overhead resistance. The next stop for them could be $7.30.
While the bulls will likely defend this level vigorously, if they fail to do so, the pair may begin the next leg in the downtrend.
Avalanche (AVAX), continued to fall and fell below the critical support of $23.51 May 26. This is a sign of the resumption the downtrend.
Daily chart of AVAX/USDT Source: TradingView
The bears are favorably favored by the moving averages that are downsloping, but the RSI indicates a consolidation or relief rally in the near-term. A short squeeze could occur if the price rises to $23.51 or higher. This could cause the AVAX/USDT to surge to the $20 EMA ($34).
If bears maintain the price below $23.51, selling could gain momentum, and the pair might fall to the psychological support of $20.
The Shiba Inu (SHIB), continues to feel the pressure. Bulls defend the support level at $0.000010 but the rebound is weak. This indicates that there is little demand at the current levels.
Daily chart of SHIB/USDT TradingView
The bears will try to lower the price to $0.000010. If they succeed, the SHIB/USDT pairing could fall to $0.000009. This level is important to watch as a break or close below could signal the resumption the downtrend. This could lead to a decline in the pair towards $0.000007.
If $0.000010 holds, the pair may rise to the 20 day EMA ($0.000013). Although this level could act as resistance, if it is crossed, the upward movement could reach $0.000017.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.