Bitcoin (BTC) fell below the $60,000 support level on May 1, indicating a weakening uptrend. Despite this short-term setback, analysts remain optimistic about the long-term prospects of Bitcoin.
Negative news surrounding the debut of Hong Kong spot Bitcoin and Ether (ETH) exchange-traded funds (ETFs) on April 30, as well as continued outflows from US-based spot Bitcoin ETFs for the fifth consecutive day, have dampened investor sentiment.
In every bull phase, there are sharp corrections that shake out weak investors and provide an opportunity for long-term investors to add to their portfolios. However, it is advisable to wait for the price to confirm a bottom before making significant bets.
Could Bitcoin and other altcoins stage a strong recovery and trap bearish traders? Let’s examine the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis:
Bitcoin’s consolidation pattern broke on May 1, indicating that bears have gained the upper hand. Buyers will attempt to push the price back above $59,600, but if the price turns down from this level, it could drop to the 61.8% Fibonacci retracement level of $54,298. However, if the price turns up and breaks above the 50-day simple moving average ($66,596), this negative view will be invalidated in the near term.
Ether Price Analysis:
Ether broke below the 20-day exponential moving average ($3,170) and the $3,056 support level on April 30, signaling bearish control. The selling continued on May 1, with the price falling below the solid support at $2,852. If bears sustain the price below $2,852, the ETH/USDT pair could move downward to $2,700 and subsequently to $2,400. Bulls need to quickly push the price back above the moving averages to prevent further decline.
BNB Price Analysis:
BNB’s April 30 candlestick showed buying interest at lower levels, but the momentum could not be sustained. Bears continued selling on May 1, pulling the price below the moving averages. The BNB/USDT pair could drop to the critical support level at $495, which bulls must defend. A break below $495 could lead to further decline to $460 and later to $400. If the price bounces off $495 and rises above the moving averages, it suggests range-bound action may continue, with an obstacle at $635 for the next leg of the uptrend.
Solana Price Analysis:
The failure of bulls to initiate a rebound off $126 in Solana shows that bears are still in control. There is a minor support at $116, but if this level breaks, the selling could accelerate, and the SOL/USDT pair could plunge to $100. To make a comeback, bulls must push the price above the 20-day EMA ($144), which may trap aggressive bears and result in a short squeeze. The pair may then rise toward the 50-day SMA ($166).
XRP Price Analysis:
XRP attempted a relief rally from the $0.50 level on April 29 but failed to maintain higher levels. Continuous selling by bears pushed the price below $0.50, opening the possibility of a retest of the solid support at $0.46. Bulls are expected to defend the zone between $0.46 and $0.41, as a break below it may start a downtrend. If the price bounces off $0.46 and rises above the 50-day SMA ($0.57), it suggests weakening bearish control, and the pair may remain in the $0.41 to $0.74 range for some time.
Dogecoin Price Analysis:
Dogecoin’s fall intensified after breaking below the symmetrical triangle pattern and the neckline of the bearish head-and-shoulders pattern. If the price remains below $0.12, selling could intensify, and the DOGE/USDT pair may slide to $0.10 and eventually to $0.08. A quick rise back above the neckline indicates solid buying at lower levels. Bulls gain strength on a break above the 20-day EMA ($0.15), signaling a potential trend change.
Toncoin Price Analysis:
Toncoin broke below the 50-day SMA ($5.32) on April 30, indicating continued bearish pressure. Bulls are likely to defend the zone between the 50% Fibonacci retracement level of $4.90 and the 61.8% retracement level of $4.25. Breaking above the 20-day EMA ($5.58) would signal the end of the correction, with a potential rally to $6.24. However, if the price continues lower and breaks below $4.25, it indicates the end of the uptrend and increases the risk of a drop to $3.32.
Cardano Price Analysis:
Cardano is attempting a recovery from $0.42, but the weak rebound suggests a lack of demand from bulls. The downsloping 20-day EMA ($0.48) and the RSI near the oversold zone indicate a downside bias. A drop below $0.42 could lead to a retest of the $0.40 support level. Bulls are likely to defend this level, as a break below it may extend the decline to $0.35. Crossing the 20-day EMA is crucial to indicate weakening bearish control.
Avalanche Price Analysis:
Buyers attempted to push Avalanche back above the uptrend line on April 29, but bears resisted. A minor support is present at $31.92, but breaking below it could lead to a slide to $29.24. Bulls are likely to aggressively buy between $27.24 and $29.24. Clearing the downtrend line on the way up would signal a comeback and a potential rise to $42 and the 50-day SMA ($45.68), which may attract selling pressure.
Shiba Inu Price Analysis:
Bulls attempted to push Shiba Inu above the 20-day EMA ($0.000024) on April 30, but bears held their ground. The SHIB/USDT pair could slide to $0.000020, a strong support level. Any rebound off this level may face selling at the 20-day EMA, and a sharp turn down increases the likelihood of a drop to $0.000018. Breaking and closing above the moving averages signals strong buying, with a potential rally to $0.000033.
This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.