The rally in Bitcoin and most major altcoins has stalled out near the corresponding resistance levels, indicating that the bears are active at higher levels.
The US stock market rallied sharply on May 17 and 18 in hopes that the debt ceiling deal could be reached, but the market gave back some of its gains on May 19 on reports of a temporary suspension of talks.
The US dollar index (DXY), which had been rising for the past three days, dipped on May 19 after Federal Reserve Chairman Jerome Powell hinted at an end to rate hikes. Speaking at a conference in Washington, DC, Powell said that strains in the banking system may constrain the need to raise rates as high as “they would otherwise have been to achieve our objectives.”
Although the short-term picture of Bitcoin (BTC) is uncertain, analysts remain bullish on the long term. Blockstream CEO and co-founder Adam Back recently said that “hyperbitcoinization” could be coming soon. That would boost demand for Bitcoin, raising its price. Back argued that the number of “wholesalers” has been steadily increasing and if the trend continues, it could happen that 10 million people try to buy a Bitcoin over a few years, and that would “push the price out of reach.”
Do the charts indicate a possible recovery for Bitcoin and altcoins in the short term? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
The bulls again tried to push the price into the symmetrical triangle pattern on May 17, but the bears fiercely protected the level and pushed Bitcoin lower on May 18.
The BTC/USDT pair will continue to witness a tough fight between the bulls and the bears in the area between the support line and $25,250.
The down-sloping 20-day exponential moving average ($27,590) and the RSI in negative territory indicate that the bears have a slight advantage. However, the failure of the bears to hold the price below $26,500 shows that the selling pressure is reduced at the lower levels.
If the buyers break through the overhead resistance, the pair could start a rally towards the 50-day simple moving average ($28.412) and then towards the resistance line. A break above the triangle will turn the tables in favor of the bulls.
Ether Price Analysis
The bulls have been trying to push Ether (ETH) above the 20-day EMA ($1,840) for the past few days, but the bears have not allowed that to happen.
The long tail on the May 16-18 candle shows that the bulls continue to buy the intraday dips. This improves the prospects of a break above the 20 day EMA. If this hurdle is cleared, the ETH/USDT pair could rally to the resistance line of the falling wedge pattern.
This is the key level to watch because a breakout and close above it will signal the start of a new move up. On the downside, the bears will have to push the price below the support line to start a move down to $1,600.
BNB Price Analysis
BNB (BNB) continues to trade within a descending channel pattern. The price turned down from the 20-day EMA ($315) on May 18, indicating that sentiment remains bearish.
The first sign of strength will be a break and close above the 20 day EMA. That could clear the way for a probable rally towards the resistance line. The bears are again expected to protect this level vigorously. If the price falls sharply from the resistance line, it will suggest that the BNB/USDT pair may stay inside the channel for a while longer.
The bears likely have other plans. They will try to sink the price below the support line of the channel and challenge the crucial support at $280.
XRP Price Analysis
After struggling near the 20-day EMA ($0.45) on May 17, buyers broke above the barrier on May 18. This suggests that XRP (XRP) is witnessing a return from the bulls.
The flattening of the 20 day EMA and the RSI in the positive territory indicate that the selling pressure is easing. There is a zone of stiff resistance between the downtrend line and the 50-day SMA ($0.48), but it is likely to be crossed. If that happens, the XRP/USDT pair could start its march north towards $0.54.
Conversely, if the price turns down from the current level, it will suggest that the bears continue to sell on relief rallies. That could keep the pair trapped between the 50-day SMA and $0.40 for some time.
Cardano Price Analysis
The bulls tried to hold Cardano (ADA) above the 20-day EMA ($0.37) on May 17-18, but the bears did not budge.
The bulls have not given up much ground since the 20 day EMA, which is an encouraging sign. This shows that every minor dip is being bought. The bulls will try to push the price above the 20 day EMA again. If they can pull it off, the ADA/USDT pair can rally to the 50-day SMA ($0.39) first and then try a move to $0.44.
Time is running out for bassists. If they want to take control, they will have to quickly pull the price below the uptrend line. That will open the doors for a possible drop to $0.30.
Dogecoin Price Analysis
The bulls tried to push Dogecoin (DOGE) above the 20-day EMA ($0.07) on May 17, but the bears held their ground.
The bulls may try to clear the upper hurdle again, and if they succeed, the DOGE/USDT pair could rally to the 50-day SMA ($0.08). This level is likely to act as a barrier, but if it is crossed, it will suggest that the pair continues to oscillate within the broad range of $0.07 to $0.11.
Contrary to this assumption, if the price turns down from the current level and falls below $0.07, it will indicate that the bears have beaten the bulls. The pair could then drop to $0.06.
Polygon Price Analysis
Buyers carried Polygon (MATIC) above the resistance of the tight $0.82-$0.88 range on May 17. Although the bears returned the price to the range on May 18, a minor positive is that the bulls bought the intraday dips as seen from the long tail on the candlestick for the day.
The zone between the 20-day EMA ($0.91) and $0.94 is likely to see some heavy selling by the bears. If the bulls clear this hurdle, the MATIC/USDT pair is likely to pick up momentum and reach the downtrend line.
Alternatively, if the price fails to break above the 20 day EMA, it will indicate that sentiment remains negative and the bears are selling every minor relief rally. The sellers will try again to sink the pair below $0.82.
Solana Price Analysis
Solana (SOL) turned down sharply from the downtrend line on May 18, indicating that the bears are fiercely defending the level.
The bears will try to further increase their advantage by sinking the price below the strong support of $19.85. If successful, the SOL/USDT pair can first drop to $18.70 and then $16.
Conversely, if the price bounces off the current level and rises above the 50-day SMA ($21.81), it will indicate that the bulls are active at lower levels. The pair can then try a rally to $24 and $27.12 thereafter.
Polkadot Price Analysis
Polkadot (DOT) has been struggling to start a recovery, indicating that demand is drying up at higher levels.
Often times, a tight consolidation near strong support tends to break down. In this case, a break and close below $5.15 will complete a descending triangle pattern and open the doors for a potential drop to $4.22.
If the bears are to avoid this dip, they will need to quickly push the price above the 20-day EMA ($5.51). If they do, the DOT/USDT pair could rally to the 50-day SMA ($5.97) and then rally to the downtrend line. Buyers will have to overcome this resistance to signal that the correction may be over.
Litecoin Price Analysis
Litecoin (LTC) turned down from the overhead resistance of $96 on May 18, but a positive sign is that the bulls did not let the price fall below the 50-day SMA ($89). This shows that the bulls are trying to turn this level into support.
The 20-day EMA ($87) has started to turn around and the RSI is near 59, indicating that the bulls have the upper hand. Next, the buyers will make another attempt to clear the overhead hurdle at $96 and push the LTC/USDT pair to $106.
This positive view will be invalidated in the short term if the price turns down and breaks below the moving averages. Such a move will indicate that the pair may range from $75 to $96 for some time longer.
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This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
