Ether has broken out of its triangle and that may push Bitcoin price above $30,000.
Confidence in the US financial system appears to be eroding rapidly, with investors trying to find the next weak link that is about to collapse. bill ackman, CEO of hedge fund manager Pershing Square, warned that time was running out to fix the problem.
US equity markets have become vulnerable to headwinds from regional banks, as evidenced by the selling over the past three days. By comparison, Bitcoin (BTC) has remained strong and is hovering near its critical resistance above $31,000.
Bitcoin is not the only one that has performed better. Gold had rallied near its all-time high for the week. This shows that Bitcoin is currently behaving as a safe haven asset and investors are adding it to their portfolio along with gold.
Could Bitcoin break the $31,000 barrier and continue its rise? Will altcoins follow Bitcoin? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin continues to trade within the symmetrical triangle pattern, indicating indecision between bulls and bears. Usually, the trend that was in force before the formation of the triangle tends to resume. This means that the price is likely to break out.
If the price closes above the triangle, the BTC/USDT pair could rally as high as $32,400. The bears are expected to mount a strong defense at this level, as if the bulls push the price above $32,400, the rally could reach $40,000.
Conversely, if the pair pulls back from the resistance line, it is estimated that the pair will continue its random action inside the triangle for a few more days.
If the triangle breaks out and closes below, the bears will outperform the bulls. The pair could drop to $25,250.
Ethereum Price Analysis
The bulls pushed Ether (ETH) above the resistance line of the symmetrical triangle pattern on May 5. This shows that the bulls have absorbed the offer and emerged victorious.
If buyers sustain the price above the triangle, The ETH/USDT pair could rally to $2,000 first and then attempt a rally to $2,200. The bears could aggressively defend this level, as failure to do so could see the pair skyrocket towards $3,000.
Conversely, if the pair pulls back from the current level and re-enters the triangle, this will suggest that the breakout was a bull trap. The pair could fall back to the support line. A break below this level could sink the pair to the $1,619 target.
BNB Price Analysis
BNB (BNB) is witnessing a tough battle between the bulls and the bears near the support line of the symmetrical triangle pattern.
The flat 20-day EMA ($326) and the RSI near the midpoint do not give a clear advantage to either the bulls or the bears. If the price breaks above the 20 day EMA, the BNB/USDT pair could continue to swing inside the triangle for some more time.
A break below the triangle will indicate that the bears have taken control. A move lower towards $300 and then towards the pattern target of $280 is likely. If the bulls want to get the upper hand, they will have to push the price above the triangle. That will clear the way for a potential rally to $350 and then $400.
XRP Price Analysis
XRP (XRP) formed an intraday candlestick pattern on May 4 and a Doji candlestick pattern on May 5. This suggests that the bulls and bears are playing it safe and not making large bets.
The moving averages have completed a bearish crossover and the RSI is in negative territory, indicating that the bears have a slight advantage. The bears will try to sink the price down to the strong support of $0.43.
Conversely, if the price rally from the current level and break above the 20-day EMA ($0.47), it will signal a solid buy at lower levels. The XRP/USDT pair could then rally to the resistance line. Buyers will have to break through this resistance to open up the possibility of a rally to $0.54.
Cardano Price Analysis
Cardano (ADA) fell below the 50-day simple moving average ($0.38) on May 3-5, but the long tail of the candlestick shows that the bulls are aggressively defending the support near $0.37.
The buyers tried to break above the 20-day EMA ($0.39) on May 4, but the bears did not budge. The downward slope of the 20 day EMA and the RSI just below the midpoint suggest a bit of an advantage for the bears. If the price turns lower and breaks down below $0.37, the selling could intensify and the ADA/USDT pair could drop to $0.33 and then $0.30.
If the bulls want to avoid this decline, they will need to quickly push the price above the neckline of the inverse head and shoulders pattern. That could increase the chances of a rally to $0.46 and later $0.52.
Dogecoin Price Analysis
The bulls have managed to hold Dogecoin (DOGE) above immediate support near $0.08 but have failed to make a significant bounce. This suggests that demand is drying up at higher levels.
A tight consolidation near strong support usually resolves to the downside. The dip of the 20-day EMA ($0.08) and the RSI in the negative zone also indicate that the path of least resistance is to the downside.
If the support near $0.08 gives way, the DOGE/USDT pair could drop to the next major support at $0.07. This negative view will be invalidated in the short term if the buyers push the DOGE price above the downtrend line.
Polygon Price Analysis
Polygon (MATIC) tried to rally above the 20-day EMA ($1.02) on May 3-4, but the bears successfully protected the level.
The bearish moving averages and the RSI near 43 suggest that the bears are in command. If the price turns down and breaks below $0.94, the MATIC/USDT pair will complete a descending triangle pattern. This could lead to a move lower towards $0.69.
Instead, if the price rises above the 20 day EMA, it will suggest that the lower levels continue to attract buyers. Then the pair could rally to the resistance line, where the bears are likely to sell aggressively again.
Solana Price Analysis
Solana (SOL) has been trading in a tight range for the past three days. This suggests a state of indecision between buyers and sellers.
The flat moving averages and the RSI near the midpoint suggest that the SOL/USDT pair could remain stuck within the wide range between $15.28 and $27.12 for some time. If the pair slides and sustains below the 50-day SMA ($21.90), the bears would take the lead in the short term. The pair could drop as low as $18.70.
On the other hand, if the buyers break above the 20-day EMA, the pair could start its march towards $24, and then $27.12.
Polkadot Price Analysis
Sellers pulled Polkadot (DOT) below the $5.70 support on May 3, but the long tail shows solid buying at lower levels. The bulls once again thwarted the bears’ attempts to break the support on May 4-5.
If the price does not sustain below $5.70, the buyers will be attracted. These will try to push the price above the 20-day EMA ($5.96). If they pull it off, the DOT/USDT pair could reach the 50-day SMA ($6.18). Buyers will need to overcome this hurdle to prevail in the short term. The next bullish target is at $7.
On the other hand, if the price turns down from the 20 day EMA, it will suggest that the bears continue to sell minor rallies. Then, the sellers will try again to pull the price below $5.70 and challenge the crucial support at $5.15.
Litecoin Price Analysis
The long tail on the May 3 and May 5 candles for Litecoin (LTC) shows that the bulls are still protecting the $85 level with vigor, but are struggling to clear the moving average hurdle.
The LTC/USDT pair is stuck in a tight range as bulls buy dips and bears sell rallies. The 20-day EMA ($89) is sloping down and the RSI is just below the midpoint, which suggests a bit of an advantage for the bears. If the pair breaks below $85, the bears will take over. Then the pair could crash as low as $75.
Conversely, if the buyers push the pair above the moving averages, the pair could rally to the resistance at $96. If the price turns lower from this level, it signals possible USD range action. 85 and USD 96 for a few days.
This article does not contain investment advice or recommendations. All investments and trades involve risk, and readers should do their own research when making a decision.