Bitcoin (BTC) is currently experiencing a back-and-forth battle between buyers and sellers. After seeing significant inflows of over $595 million into spot Bitcoin exchange-traded funds (ETFs) on May 3 and May 6, there was an outflow of $15.7 million on May 7, according to data from Farside Investors. Despite the short-term uncertainty, crypto enthusiast Anthony Pompliano remains optimistic about Bitcoin’s long-term prospects. Pompliano highlighted that Bitcoin’s 200-day simple moving average reached a new all-time high above $50,000, indicating a positive long-term trend.
The sideways movement in Bitcoin’s price has not deterred institutional investors from investing in spot Bitcoin ETFs. Quantitative trading firm Susquehanna International Group revealed that it acquired more than $1 billion worth of shares of Bitcoin spot ETFs in the first quarter of 2024.
Now, let’s analyze the charts of the top 10 cryptocurrencies to see if buyers can protect support levels and prevent a collapse.
Bitcoin’s recovery hit a roadblock at the 50-day simple moving average ($65,829) on May 6, suggesting that bears are strongly defending this level. The BTC/USDT pair could potentially drop to $59,600 and later to $56,500, which is a crucial support level to watch. If the price falls below $56,500, the next stop could be the 61.8% Fibonacci retracement level of $54,298, followed by $50,000. On the other hand, if bulls manage to push the price above the 50-day SMA, the pair could gain momentum and rally towards the resistance at $73,777.
In Ether (ETH), the bears are putting up a strong defense at the zone between the 20-day exponential moving average ($3,116) and the resistance line of the descending channel pattern. If the bears succeed in pulling the price below the vital support at $2,850, the ETH/USDT pair could start a downtrend towards the channel’s support line. However, if the price bounces back from $2,850, it will indicate strong support from the bulls. The bulls will need to drive the price above the resistance line to signal a potential trend change.
Binance Coin (BNB) has been trading around the moving averages, indicating uncertainty about its next directional move. If the price remains below the moving averages, the bears may try to push the BNB/USDT pair down to $536 and then to the solid support at $495. A bounce off this level could indicate a prolonged range-bound action. To signal that the bulls have taken control, the price needs to turn up from the current level and break above $635. In that case, the pair could resume its uptrend towards the next target at $692.
Solana (SOL) has been consolidating between $162 and $126, showing indecision between buyers and sellers. The flat 20-day EMA ($146) and the RSI near the midpoint suggest a lack of advantage for either side. If the price slips below the 20-day EMA, the bears may attempt to push the SOL/USDT pair down to $126, and a break below this support could trigger a downtrend towards the psychological support at $100. Conversely, if the price turns up and breaks above $162, it will indicate the end of the corrective phase, and the pair could rally to $185 and later to $205.
XRP’s price has been trading in a tight range between $0.57 and $0.46. The 20-day EMA ($0.53) has flattened out, indicating equilibrium between buyers and sellers. If the price remains below the 20-day EMA, there is a possibility of a drop to $0.46. However, if the price stays above the 20-day EMA, the XRP/USDT pair could rise to $0.57. To take control, the bulls need to drive and sustain the price above this resistance level, which could lead to a potential rally to $0.67.
Dogecoin (DOGE) turned lower from the 50-day SMA ($0.17) on May 6 and fell below the 20-day EMA ($0.15) on May 7. Bears will attempt to push the price towards the crucial support at $0.12. If the price rebounds from this level, it suggests strong buying by the bulls and a possible range-bound action between $0.12 and the 50-day SMA. To open doors for a rally to $0.21, buyers will need to overcome the barrier at the 50-day SMA. On the downside, a break below $0.12 could initiate a bearish head-and-shoulders pattern and trigger a downtrend.
Toncoin (TON) turned down from the 50% Fibonacci retracement level of $6.13, indicating selling pressure from bears. The flattish 20-day EMA ($5.64) and the RSI near the midpoint suggest balance between supply and demand. If the price bounces off the moving averages strongly, bulls may attempt to clear the overhead hurdle at the 61.8% Fibonacci retracement level of $6.49, suggesting the end of the corrective phase. On the other hand, if the price slips below the moving averages, the advantage will tilt in favor of bears, and the TON/USDT pair could slump to the solid support at $4.72.
Cardano (ADA) is currently squeezed between the 20-day EMA ($0.47) and the support line, indicating an upcoming breakout. It is difficult to predict the direction of the breakout, so it is better to wait for a directional move before making significant bets. If the price breaks above the 20-day EMA, the ADA/USDT pair could rise towards the 50-day SMA ($0.53) and possibly to $0.57. Conversely, if the price turns down and breaks below the support line, it may indicate that bears are in control. The pair could then decline to $0.40, with $0.35 as a crucial support level to watch.
Avalanche (AVAX) turned down from the overhead resistance of $40 on May 6, suggesting that bears are active at higher levels. The flattish 20-day EMA ($36.44) and the negative RSI indicate a possible drop to the range support at $29. If the price bounces off this level, the pair may continue to trade within the $29 to $40 range. Bulls will gain an advantage if they push and maintain the price above $40. Conversely, a break and close below $29 will indicate the bears’ control, and the AVAX/USDT pair could dive towards the pattern target of $18.
Shiba Inu (SHIB) turned down from the 50-day SMA ($0.000026) on May 6, indicating strong resistance from bears. The price action has formed a symmetrical triangle pattern, suggesting indecision between buyers and sellers. If the price falls below the triangle, it will indicate bearish sentiment, and the SHIB/USDT pair could drop to the 78.6% Fibonacci retracement level of $0.000017. However, if the price bounces off the triangle’s support line, it suggests demand at lower levels, and the pair may continue trading within the triangle. A break above the triangle will favor the bulls.
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.