Bitcoin (BTC) bulls are attempting a comeback as they push the price above the psychologically important level of $60,000. According to veteran trader Peter Brandt, if Bitcoin can hold its recent lows and continue to rise, it will indicate a typical pattern seen in bull markets. However, analysts believe that the uptrend may not start immediately, with Bitfinex Alpha market report suggesting that Bitcoin could remain range-bound with swings of $10,000 for the next one to two months.
Traders are closely watching the spot Bitcoin exchange-traded funds (ETFs), as their performance is expected to impact market sentiment. Recent data from Farside Investors shows that Bitcoin ETFs saw outflows of $563 million on May 1, but a few successive days of net inflows could boost sentiment. Former BitMEX CEO Arthur Hayes also believes that the sell-off has ended and expects the crypto markets to move higher.
When it comes to the recovery, there are important resistance levels that may hinder the process. Let’s analyze the charts of the top 10 cryptocurrencies to identify these levels.
Bitcoin:
Bitcoin is finding support between the 50% Fibonacci retracement level of $58,017 and the 61.8% retracement level of $54,298. The recent bounce above the breakdown level of $59,600 suggests that the previous fall may have been a bear trap. However, the bears are likely to put up a fight and attempt to stall the relief rally at the 20-day exponential moving average ($63,366) and the 50-day simple moving average ($66,151). If the price turns down from these moving averages, it will indicate negative sentiment and the bears will make another attempt to push the BTC/USDT pair below $56,500.
Ether:
Ether (ETH) fell below the $2,850 support but showed strong demand at lower levels. The downsloping moving averages and the RSI below 45 indicate bearish sentiment. If the price turns down from the current level or the 20-day EMA ($3,152), the bears will try to push the ETH/USDT pair to the support line of the descending channel pattern. On the other hand, a break above the 20-day EMA would suggest reduced selling pressure and potentially mark the end of the downtrend.
BNB:
BNB has been trading within a wide range between $495 and $635, indicating indecision between the bulls and the bears. If the price stays below the moving averages, the BNB/USDT pair could slide to the strong support level at $495. On the other hand, a rise above the moving averages could push the pair to the overhead resistance at $635, which is a significant level for the bears to defend.
Solana:
Solana slipped below the $126 support but quickly bounced back, indicating buying pressure from the bulls. The pair has reached the 20-day EMA, an important level to watch. If buyers can overcome this barrier, the pair may climb towards the overhead resistance at $162. However, if the price turns lower from the 20-day EMA and breaks below $126, it will signal the start of a downtrend.
XRP:
XRP’s relief rally has reached the 20-day EMA, a crucial level for the bears to defend. If the price turns down from this level, the sellers will attempt to push the XRP/USDT pair towards the strong support zone between $0.46 and $0.41. A break and close above the 20-day EMA would indicate strength and could lead to a rise to $0.57.
Dogecoin:
Dogecoin bounced off the $0.12 support, suggesting that the bulls are trying to defend this level. Buyers will aim to push the price to the zone between the 20-day EMA and the downtrend line. However, if the price turns down from this zone, the bears will attempt to sink the DOGE/USDT pair below the neckline near $0.12, potentially starting a bearish head-and-shoulders pattern.
Toncoin:
Toncoin is finding support between the 50% Fibonacci retracement level of $4.90 and the 61.8% retracement level of $4.25. The relief rally has reached the moving averages, which is a critical level to watch. If the price turns down from the moving averages, the bears will try to push the TON/USDT pair below $4.25. However, a break above the 20-day EMA would suggest a stronger recovery.
Cardano:
Cardano is struggling to stay above the breakdown level of $0.46. The zone between $0.46 and the 20-day EMA is likely to see strong selling pressure from the bears. If the price turns down sharply and breaks below $0.40, the ADA/USDT pair may enter the next leg of the downtrend. On the other hand, a break above the 20-day EMA would indicate reduced selling pressure and could push the pair to $0.52 and later to $0.57.
Avalanche:
Avalanche has formed a range between $29 and $40. The downsloping 20-day EMA and the RSI near 42 suggest that the bears have the upper hand. If the price turns down from the 20-day EMA, the bears will attempt to sink the AVAX/USDT pair below $29. On the other hand, if buyers break above the 20-day EMA, it would indicate buying at lower levels and may lead to a climb to $40.
Shiba Inu:
Shiba Inu is trying to defend the $0.000020 level, as shown by the long tail on the May 1 candlestick. The recovery attempt may face selling at the moving averages. If the price turns down sharply, it would increase the likelihood of a drop below $0.000020. On the other hand, a break and close above the moving averages would indicate reduced selling pressure and could push the pair to $0.000028 and subsequently to $0.000033.
Please note that this article does not provide investment advice or recommendations. It is important to conduct your own research and analysis before making any investment decisions.