The S&P 500 Index and the Nasdaq Composite reached new record highs following the release of a lower than expected United States Consumer inflation report. This led to a surge in the price of Bitcoin, pushing it above $66,000. As Bitcoin moves further away from the $60,000 mark, the likelihood of a breakdown decreases. However, this does not guarantee the beginning of a new uptrend.
Mike Novogratz, the founder and CEO of Galaxy Digital, stated during the firm’s first quarter earnings call that Bitcoin is likely to consolidate between $55,000 and $75,000 before experiencing an upward movement towards the end of the current quarter.
The failure of the bears to push Bitcoin below $60,000 seems to have attracted buyers. CoinShares’ “Digital Asset Fund Flows Weekly” report showed inflows of $130 million into digital asset investment products, marking the first occurrence in five weeks.
The State of Wisconsin Investment Board (SWIB) revealed that it has invested approximately $164 million in spot Bitcoin exchange-traded funds. Bloomberg ETF analyst Eric Balchunas noted that more institutional investments of this kind can be expected as institutions tend to follow each other.
Now let’s take a look at the charts of the top 10 cryptocurrencies to see if Bitcoin and select altcoins can overcome the near-term resistance and move higher.
Bitcoin analysis:
Bitcoin has surpassed the 20-day exponential moving average ($62,765) on May 15, indicating that the bulls have absorbed the supply. If buyers maintain the momentum and push the price above the 50-day simple moving average ($65,152), it will pave the way for a potential rally to the strong resistance level at $73,777. However, the bears are likely to defend this level with all their might. On the downside, if the bears manage to defend the 50-day SMA and pull the price to the $59,600 support, the bulls are expected to fiercely defend this level. A breakdown below this support could lead to a plunge to the 61.8% Fibonacci retracement level of $54,298.
Ether analysis:
Ether has experienced a strong rebound from the $2,850 support on May 15, indicating that the bulls are firmly defending this level. If buyers manage to push the price above the 20-day EMA ($3,026), the ETH/USDT pair could rise to the resistance line of the descending channel. The bears are likely to put up a strong defense at this level, but if the bulls prevail, a rally to $3,400 could be on the horizon. However, if the price turns down from the 20-day EMA, it will signal that bears are selling on every minor rally. In this case, the pair may retest the strong support at $2,850, and a break below this level could initiate a downward move towards the support line of the descending channel.
BNB analysis:
BNB fell below the moving averages on May 14 but quickly rebounded from the support line of the symmetrical triangle pattern, indicating aggressive buying at lower levels. Buyers will attempt to gain control by pushing the price above the resistance line of the triangle. If successful, the BNB/USDT pair could surge to $634 and then to $692. The pattern target of the setup is $726. Conversely, if the price turns down and breaks below the triangle, it will suggest that bears have gained control in the near term. The pair could decline towards $495 and potentially to the pattern target of $434.
Solana analysis:
Solana broke above the 20-day EMA ($146) on May 15, indicating a reduction in selling pressure. If the price remains above $145, the SOL/USDT pair could rally to $162. In a range-bound market, traders typically sell near the resistance level, so a similar scenario could unfold near $162. A break above this level or below $126 could initiate the next trending move. If the $162 level is surpassed, the pair may climb to $205. On the other hand, a break below $126 could push the pair down to $100.
XRP analysis:
XRP attempted to break above the 20-day EMA ($0.51) on May 14 but was unable to do so due to resistance from the bears. The bulls are trying again on May 15. If they succeed, the XRP/USDT pair may rally to the overhead resistance at $0.57. This level could prove to be a significant barrier to cross. However, if the price turns down from the 20-day EMA, the bears will aim to strengthen their position by pushing the price towards the critical support at $0.46. Buyers are expected to aggressively defend this level, and a strong rebound would indicate that range-bound action may continue for some more time.
Toncoin analysis:
Buyers attempted to push Toncoin above the $7.67 resistance on May 13 but faced selling pressure at higher levels. However, the bulls have not given up much ground to the bears, suggesting that they may make another attempt at breaking the overhead resistance. If buyers manage to push and maintain the price above $7.67, it will signal the resumption of the uptrend. The TON/USDT pair could rally to $9. On the other hand, if the price turns down from the current level and falls below the moving averages, the positive view will be invalidated in the near term.
Dogecoin analysis:
The bulls are trying to prevent Dogecoin from breaking below the neckline of a bearish head-and-shoulders pattern. The 20-day EMA ($0.15) is relatively flat, and the RSI is near the midpoint, suggesting a range-bound action in the near term. If the price rises above the 20-day EMA, the DOGE/USDT pair could reach the 50-day SMA ($0.17), an important level for the bears to defend. A break above it could clear the path for a rally to $0.21. On the other hand, the bears will gain control if they sink the price below the neckline of the H&S pattern, potentially leading to a drop to $0.08.
Cardano analysis:
The failure of the bears to keep Cardano below the support line on May 15 resulted in strong buying by the bulls. The 20-day EMA is sloping downwards, and the RSI is in negative territory, indicating that the bears have the upper hand. If the price turns down from the 20-day EMA and sustains below the support line, it will signal the start of the next leg of the downtrend, with the ADA/USDT pair potentially descending to $0.35. However, if the price continues to rise and breaks above the 20-day EMA, it will suggest that the bears are losing their grip. The pair may then climb to the 50-day SMA and later to $0.57.
Avalanche analysis:
Avalanche has been trading below the 20-day EMA ($35) for the past few days, but the bears have failed to push the price to the support of the range at $29. This indicates that selling pressure is drying up at lower levels. The bulls will attempt to push the price above the 20-day EMA, which could signal that the AVAX/USDT pair may remain range-bound between $40 and $29 for a while. A break above $40 could initiate a rally to $50. On the other hand, if the price turns down from the 20-day EMA, it will suggest that the bears are trying to take control. The pair may then decline to the strong support at $29, and a breakdown below this level could indicate the start of the next leg of the downtrend, potentially pushing the pair down to $25.
Shiba Inu analysis:
Shiba Inu successfully defended the support line of the symmetrical triangle pattern on May 13. The 20-day EMA is flattening, and the RSI is near the midpoint, indicating a lack of clear advantage for either the bulls or the bears. It is difficult to predict the direction of the breakout with certainty, so it is advisable to wait for the price to break above or below the triangle before making significant moves. A breakout above the triangle could suggest that the corrective phase is over, with the SHIB/USDT pair potentially rising to $0.000030 and then to $0.000033. On the other hand, a break below the triangle could lead to a fall to the 78.6% Fibonacci retracement level of $0.000017.
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.