Bitcoin (BTC), which has a dubious track record of nine consecutive red weekly closes is trying to make amends. Analysts repeatedly stated that investors shouldn’t be afraid of a bear market as it is a great time to invest in fundamentally sound projects in preparation for the next bull stage.
Ki Young Ju, CEO of CryptoQuant, stated that 62% of realized cap (unspent transaction outputs) are left untapped after six months. This is similar to what was seen in the March 2020 crash. Ki stated that Bitcoin could be on the verge of forming a cyclic top.
Everyday cryptocurrency market performance. Source: Coin360
Although it’s difficult to imagine a Bitcoin rally of more than $250,000 in the current bearish market, billionaire investor Tim Draper remains bullish. Draper stated that women will be more likely to buy Bitcoin if more stores accept Bitcoin. Draper believes this could increase Bitcoin’s value above his $250,000. target.
Are there any good times to buy Bitcoin? Are the crypto markets poised to see a short-term recovery? Let’s look at the charts of the top 10 cryptocurrencies to see if we can find out.
Bitcoin broke above its downtrend line on May 30, and the bulls are trying to keep the price above the 20 day exponential moving average ($30.562). If they succeed, it could be the first sign that the bears are losing their grip.
Daily chart of BTC/USDT Source: TradingView
The BTC/USDT pair can rise to $32,659 if the price remains above the 20-day EMA and then to the 50 day simple moving average ($34,000.954). Bulls may be trying to make a comeback. The relative strength index (RSI), which is above 46 at the 20-day EMA, has risen above 45.
If the price falls below the 20-day EMA it will indicate that sentiment is still negative and traders are buying rallies. The bears will attempt to bring the pair below $28,630, challenging the $26,700 intraday low of May 12. Breaking below this support could signal a resumption in the downtrend.
Ether (ETH), which bounced off $1,700 of vital support on May 28, is now marching towards the 20-day EMA ($2,026). This indicates that bulls are trying to begin a sustained recovery.
Daily chart of ETH/USDT Source: TradingView
The RSI shows a bullish divergence, suggesting that selling pressure might be decreasing. Buyers will push the price higher than the 20-day EMA to challenge the $2,159 breakdown level. If the bulls are unable to overcome this hurdle, the BNB/USDT pairing may fall and consolidate between $1.700 and $2.159.
Bulls pushing the price higher than $2,159 will indicate that $1,700 could be the low-end in the near term. The price could rally to the 50 day SMA ($2,504). If the price falls below $1,700, this bullish view may be invalidated.
Binance Coin (BNB), which took support close to the immediate support level at $286 on May 27th, suggests that traders are buying dips. The bulls will attempt to push the price higher than the overhead resistance of $320.
Daily chart BNB/USDT TradingView
The BNB/USDT pair may rally to $350 if they succeed. The possibility of the bottom being reached on May 12th is greater if the price does not drop below $320 for a longer period. The rally could reach $400 if bulls can overcome the $350 barrier.
However, if the price drops below the $350 level, that will indicate that bears are selling rallies. This could push the price back to $286, the support immediately. The pair could fall to $260 if this support is broken.
The bears were unable to maintain their selling pressure, even though Ripple (XRP), fell below $0.38 on May 26. This began a recovery on May 28 and has now reached the downtrend.
Daily chart of XRP/USDT Source: TradingView
This is an important resistance to watch because the bears have been defending the downtrend line repeatedly. If the price moves in the opposite direction to the downtrend line the bears will attempt to lower the XRP/USDT pairs below $0.37 and challenge $0.33.
Contrarily, if buyers continue to drive the price higher than the 20-day EMA ($0.43) it could indicate that sellers are losing their grip. The psychological level of $0.50 could be reached.
Cardano (ADA), broke below $0.46 on May 27, but the bears couldn’t build on the advantage. This dip was bought by the bulls and began a recovery on May 28,
Daily chart ADA/USDT Source: TradingView
On May 30, the relief rally gained momentum and bulls are trying to push the price higher than the 20-day EMA ($0.54). It will indicate that the ADA/USDT pairing is trying to reach a bottom if they succeed. The pair could then rise as high as $0.61, and then rally to the $0.74 level.
If the price falls below the 20-day EMA, this positive outlook could be retracted. If this happens, bears will attempt to lower the pair below $0.40 before moving on to the next leg.
Solana (SOL), which was $40 on May 28th, recovered. This indicates that bulls continue to buy at lower levels. The buyers will attempt to push the price up to the 20-day EMA (53).
Daily chart of SOL/USDT Source: TradingView
Bulls pushing the price higher than the 20-day EMA will indicate that the downtrend is weakening. The SOL/USDT currency pair could then rise to $60, and then rally to $66’s 50% Fibonacci Retracement level.
Contrarily, if the price drops below the current level or 20-day EMA it will indicate that bears are continuing to sell on rallies. This could raise the chance of a retest at $37.37. Breaking below this support could signal the beginning of the next downtrend.
Dogecoin (DOGE), which plunged below $0.08 May 26, but rebounded strongly on May 27. This indicates that bears continue to be aggressive buyers at lower levels, but they aren’t ready to lose their advantage. They continue to defend the 20 day EMA ($0.09) with vigor.
Daily chart of DOGE/USDT Source: TradingView
The bulls will attempt to push the price higher than the 20-day EMA once again. The DOGE/USDT pair may rise to $0.10 psychologically if they succeed. The resistance level at $0.10 may be resisted by bulls, but this obstacle could be overcome and the pair could rally to $0.12.
Alternatively, if price falls below the 20-day EMA (or $0.10), that will indicate that bears remain active at higher levels. This could bring the pair to $0.08, and then to the intraday low of $0.06 on May 12.
Related: Bitcoin “ready” for $32.8K following consolidation as BTC prices rise 6.3%
Polkadot, (DOT), formed a Doji candlestick structure on May 27, suggesting indecision between the bears and bulls. The uncertainty was resolved to the upside, and the bulls drove the price up to $10.37 overhead resistance.
Daily chart of DOT/USDT Source: TradingView
A rally to $12 could be possible if buyers push the price higher than the overhead resistance. The next stop for bulls could be $14 if they clear this hurdle. If the resistance is broken, it could signal that the USDT/DOTT pair has bottomed.
If the price falls sharply below the current level or breaks below $8.56, this positive outlook could be invalidated. This could lead to a fall to the intraday low of $7.30 on May 12. To signal the resumption or decline of the downtrend, the bears will need to lower the price below $7.30.
Avalanche (AVAX), fell below $23.51 as strong support on May 26, but the bears couldn’t capitalize on this opportunity. On May 27, the bulls bought the dip and began a recovery.
Daily chart of AVAX/USDT Source: TradingView
The bulls will try to push the price up to the 20-day EMA ($32.42), an important level to watch. The bears will attempt to retest $21.35, the intraday low on May 27, if the price falls below this resistance. This support could be broken and the AVAX/USDT pairing could slide to $20.
The RSI has a positive divergence which indicates that selling pressure may be decreasing. Bulls pushing the price higher than the 20-day EMA could lead to a rally to $38 or a subsequent attempt to move up to $46.
The support level at $0.000010 was successfully defended by the bulls on May 27. This resulted in a rebound of May 28. Shiba Inu’s (SHIB), continued its recovery, and reached the 20-day EMA ($0.000012), which is likely to provide strong resistance.
Daily chart of SHIB/USDT TradingView
If the price drops below the 20-day EMA the bears will attempt to bring the pair SHIB/USDT down below $0.000010. The pair could test the critical support level at $0.000009.
If bulls push the price higher than the 20-day EMA it could indicate that the downtrend is weakening. The pair could attempt to rally to $0.000014, and then to the $0.000017 breakdown level. To signal a possible change in trend, the bulls will need to clear this overhead hurdle.
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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.