Bitcoin (BTC) experienced heightened volatility in the past week. The price recovered from a low of around $56,500 and ended above $64,000, representing a modest gain of approximately 1.5% from the previous week. This indicates a positive sentiment in the market, with buyers taking advantage of lower levels.
Data from Farside Investors shows that spot Bitcoin exchange-traded funds saw net inflows of $378 million on May 3. Of particular note was the inflow of $63 million into the Grayscale Bitcoin Trust ETF, marking its first inflow since its conversion into a spot Bitcoin ETF in January. While it is still early to determine, initial signs suggest that the continuous selling pressure in GBTC may come to an end.
Bitcoin’s recovery in 2024 has attracted over $1 billion in venture capital funding for the sector in both March and April, according to RootData. This is the first time since October and November 2022 that such funding has been achieved for two consecutive months.
Now, let’s analyze the charts to identify important resistance levels for Bitcoin and altcoins.
S&P 500 Index:
The bears are struggling to maintain the S&P 500 Index below the moving averages, indicating strong buying at lower levels. If the price sustains above the 50-day simple moving average (5,131), it will suggest that the corrective phase may be over. The index could attempt a rally to the all-time high at 5,265, where strong selling pressure from bears is expected. A sharp decline from 5,265 may result in a range-bound movement, while a break above this level would indicate a resumption of the uptrend, potentially leading to a rally to 5,500. Key support levels are at 5,000 and 4,950.
U.S. Dollar Index:
The U.S. Dollar Index (DXY) faced resistance at 106.50 on May 1, indicating strong defense by bears. The price fell below the 20-day exponential moving average (105.43) on May 2 and extended the decline to the 50-day simple moving average (104.56) on May 3. Bulls stepped in at lower levels, as shown by the long tail on the May 3 candlestick. A downturn from the 20-day EMA could increase the chances of a drop to the support line of the ascending channel, while a break above the 20-day EMA could push the price towards 106.50.
Bitcoin:
Bitcoin broke above the 20-day EMA ($63,556) but failed to surpass the 50-day SMA ($65,937). Both moving averages have flattened out, and the RSI is near the midpoint, indicating a range-bound action in the near term. The BTC/USDT pair is likely to trade between $56,500 and $73,777 for some time. A break above the 50-day SMA could attract further buying, potentially pushing the pair towards the crucial level of $73,777. Resistance is expected at this level, and a breakdown could lead to the next leg of the uptrend towards $80,000.
Ether:
Ether (ETH) broke above the 20-day EMA ($3,143) on May 6, but encountered strong selling pressure from bears. The sellers may attempt to push the price down to the vital support at $2,850, which is an important level to watch as a break below it could result in a decline to the support line of the descending channel. However, if the price turns up from the current level and surpasses the resistance line, it could indicate a potential trend change, potentially leading to a rise to $3,730.
BNB:
BNB rose above the moving averages on May 3, signaling the bulls’ attempt to push the price to the overhead resistance at $635. The bears have successfully defended this level in the past, and they are likely to do so again. A sharp downturn from the overhead resistance may result in the BNB/USDT pair oscillating between $495 and $635 for a while longer. However, a break and close above $635 would indicate a resumption of the uptrend and could lead to a climb to $692, with strong resistance expected at this level. On the downside, bears would need to keep the price below $495 to take control.
Solana:
Solana has been trading within the range of $126 and $162, indicating uncertainty about the next directional move. The flattish 20-day EMA ($146) and the RSI just above the midpoint suggest that the range-bound action may continue for some time. If the price remains above the 20-day EMA, the SOL/USDT pair could rally to the overhead resistance at $162. However, buyers may face difficulty overcoming this obstacle. A breakthrough above $162 could accelerate the pair towards $205, which is likely to act as a strong resistance. On the downside, a break below the 20-day EMA could push the pair to $126.
XRP:
XRP climbed above the 20-day EMA ($0.53) on May 6, indicating a potential end to the corrective phase. The flat 20-day EMA and the RSI just above the midpoint suggest a balance between supply and demand. If the price surpasses the 50-day SMA ($0.56), the advantage will shift in favor of the bulls, potentially leading to a climb to the strong resistance at $0.67. However, the bears will likely try to defend the 50-day SMA and pull the price below the 20-day EMA. In that case, the pair may drop towards the crucial support zone between $0.46 and $0.41.
Toncoin:
Toncoin rose above the moving averages on May 3, indicating strong buying at lower levels. The relief rally may face selling in the zone between the 50% Fibonacci retracement level of $6.13 and the 61.8% retracement level of $6.49. If the price turns down from this zone, the bears may attempt to pull the TON/USDT pair below the moving averages, potentially leading to a decline to the pivotal support at $4.72. On the other hand, a breakthrough above $6.49 would indicate sustained buying at higher levels, opening the doors for a possible rise to $7.24 and thereafter to $7.67.
Dogecoin:
Dogecoin’s recovery is encountering selling pressure at the 50-day SMA ($0.17), but the bulls have managed to hold the price above the 20-day EMA ($0.15). If the price remains above the 20-day EMA, the bulls may attempt another test of the 50-day SMA. Repeated retests of a resistance level tend to weaken it, and if the level is broken, the DOGE/USDT pair could rally to $0.21. However, if the bears quickly pull the price below the 20-day EMA, it would suggest their continued activity at higher levels, potentially leading to a drop to $0.12.
Cardano:
Cardano once again turned down from the 20-day EMA ($0.47) on May 6, indicating aggressive defense by the bears. The bulls are trying to protect the $0.46 support, as a breakdown below this level could lead to a retest of the crucial support at $0.40. Buyers are expected to fiercely defend this level. Conversely, if the price turns up from the current level and breaks above the 20-day EMA, it would indicate a reduction in selling pressure. The pair could then attempt a rally to the overhead resistance at $0.57.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.