Bitcoin and some altcoins are showing a continuation pattern, indicating indecision between bulls and bears.
Investors appear to have priced in a 25 basis point rate hike by the US Federal Reserve on May 3rd. Next, they will look for clues on the Federal Reserve’s actions for the rest of the year.
Will the Federal Reserve maintain its hawkish stance, as inflation remains well above its target, or will banking problems and a looming recession cause the central bank to pause its rate hikes?
The World Economic Forum’s Chief Economists’ Perspectives report, released on May 1, shows that 80% of chief economists believe that central banks have to strike a delicate balance between “managing inflation and maintaining inflation.” stability of the financial sector”. Economists expect central banks to find it difficult to bring inflation back to their target levels.
Arthur Hayes, co-founder and former CEO of crypto derivatives exchange BitMEX, in an exclusive interview with Cointelegraph, warned investors that investing in assets “outside of the traditional financial system” is the only way out if they want to preserve their capital.
Could Bitcoin (BTC) and altcoins start a move higher after bouncing off key support levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
The price action of the last few days has formed a symmetrical triangle pattern in Bitcoin. Generally, the symmetrical triangle acts as a continuation pattern and the price breaks in the direction that prevailed before the formation developed.
However, it is better to wait for the price to complete the breakout before making further bets because sometimes the setup behaves like a reversal pattern.
The flat 20-day exponential moving average ($28,642) and the RSI near the midpoint do not give a clear advantage to either the bulls or the bears.
If the price continues lower and breaks below the triangle, it will suggest the start of a short-term corrective phase. The BTC/USDT pair could drop as low as $25,250. The bulls are likely to make aggressive buying at this level.
Conversely, if the price bounces off the support line and breaks above the 20-day EMA, the pair could rally to the resistance line. The break and close above the triangle will open the doors for a possible rally to $32,400.
Ether Price Analysis
Ether (ETH) broke out of the support line of the symmetrical triangle pattern on May 1, indicating that lower levels are attracting buyers.
The bulls will try to push the price above the moving averages and challenge the resistance line. If the buyers push the price above the triangle, the ETH/USDT pair could rally as high as $2,131. There is a bit of resistance at $2,000, but it is likely to be crossed.
Conversely, if the price turns down from the current level, the bears will make another attempt to sink the pair below the triangle. If they do, the pair could drop to the pattern target of $1,619.
BNB Price Analysis
BNB (BNB) remains stuck inside the symmetrical triangle pattern, indicating indecision between bulls and bears.
Buyers try to protect the support line of the triangle. If they manage to push the price above the 20-day EMA ($326), the BNB/USDT pair could reach the resistance line. Traders will need to clear this hurdle to mark the start of a new bullish move.
On the other hand, if the price falls below the triangle, it will suggest that the uncertainty has been resolved in favor of the bears. The pair could then slide to $300 and subsequently extend the decline to the pattern target of $280.
XRP Price Analysis
The long tail on the May 1 and May 2 candles shows that the bulls tried to start a rally in XRP (XRP). However, they could not keep up the buying pressure and the price turned lower on May 3.
The bears will try to extend the decline to the strong support of $0.43. This remains the key level to watch in the short term. If this support crumbles, the XRP/USDT pair could drop as low as $0.36. This level is likely to attract aggressive buying by the bulls.
Instead, if the price rally from $0.43 and break above the 20-day EMA ($0.47), it will signal that the bulls are back. The pair could rally to the resistance line. If the buyers clear this hurdle, the pair could reach $0.54.
Cardano Price Analysis
The bulls held Cardano (ADA) above the 50-day simple moving average ($0.38) on May 2, but failed to break above the hurdle at the 20-day EMA ($0.39).
The bears try to take this opportunity and close the ADA/USDT pair below the 50-day SMA. There is a little support at $0.37, but if it is broken, the selling could pick up momentum and the pair could drop to $0.33 and $0.30 thereafter.
The most important bullish resistance is the neckline of the inverse head and shoulders pattern. Buyers will need to break above this level for a short-term trend change to occur. In that case, the pair could reach $0.46.
Dogecoin Price Analysis
Dogecoin (DOGE) is struggling to bounce off the strong support near $0.08, which suggests a lack of demand from the bulls.
The 20-day EMA ($0.08) is sloping down and the RSI is below 42, indicating that the path of least resistance is to the downside. If the support near $0.08 is breached, the DOGE/USDT pair could plunge to the next major support at $0.07.
If the bulls want to avoid this drop, they will have to quickly push the price above the downtrend line. The pair could rally as far as $0.09 and thereafter rush towards the overhead resistance of $0.11.
Polygon Price Analysis
Polygon (MATIC) bounced off the $0.94 support on May 2, indicating that the bulls are aggressively trying to protect the level.
The 20-day EMA ($1.02) is sloping down and the RSI is in the negative zone, indicating that sentiment remains negative. The sellers will try to stall the rally at the 20 day EMA. If they do, the MATIC/USDT pair could turn lower and drop as low as $0.94.
The repeated repetition of a support level in a short interval tends to weaken it. If this support gives way, The selling could intensify and the pair could plummet to $0.69. Buyers will have to kick the price above the resistance line to invalidate the bearish view.
Solana Price Analysis
Buyers defended the 50-day SMA ($21.78) on May 2, but were unable to push Solana (SOL) above the 20-day EMA ($22.26). This shows that the bears are selling every little rally.
The bears have dragged the pair below the 50-day SMA. If they hold the breakout, the SOL/USDT pair could reach the next strong support at $18.70. The possibility of a bounce from this level remains high. If this happens, the pair could remain range bound between $18.70 and $27.12 for a while longer.
Conversely, if the price rises and breaks above the 20 day EMA, it will suggest that the bulls are attempting a comeback. The pair could rally to $24 and then reach the resistance of $27.12.
Polkadot Price Analysis
Polkadot (DOT) dipped below the $5.70 support on May 1 and the bears try to take advantage of this advantage on May 3.
The bulls attempted a rally on May 2, but the shallow bounce showed a lack of aggressive buying near $5.70. This suggests that the DOT/USDT pair could continue lower and reach towards the crucial support at $5.15.
The bulls are running out of time. If they want to start a sustained rally, they will have to quickly push the price above the moving averages. If they do, the pair could pick up momentum and rally towards $7.
Litecoin Price Analysis
Litecoin (LTC) is coming under pressure between the 20-day EMA ($89) and the $85 horizontal support. The moving averages have completed a bearish crossover and the RSI is in the negative zone, indicating that the bears hold the advantage.
If the bears pull the price below $85, the selling could intensify and the LTC/USDT pair could drop to the strong support at $75. The bulls are expected to defend this level with all their might, as a break below it would open the doors for a further drop to $65.
Another possibility is that the price bounces from the current level and rises above the moving averages. This move would suggest accumulation at lower levels. The pair is likely to rally as high as $96 and above as high as $106.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.