Bitcoin (BTC) experienced a rally last week but remains within a wide range. Traders are now questioning whether Bitcoin has reached its peak or if the rally will continue. Analyst “ELI5 of TLDR” stated in a recent post that five out of seven on-chain indicators suggest the bull market may just be starting, while two indicators show patterns of a market top.
The bounce in Bitcoin’s price from the psychological support level near $60,000 seems to have sparked interest in spot Bitcoin exchange-traded funds. Data from Farside Investors shows that there were approximately $950 million in inflows last week, marking the best weekly performance since March. If these inflows continue, Bitcoin could surprise investors with an upward movement.
Markus Thielen, the head of research at 10x Research, is optimistic about Bitcoin’s future. Thielen stated in a report that their Bitcoin ETF model predicts a new all-time high if Bitcoin surpasses $67,500.
The question remains as to whether bulls will be able to overcome the resistance in Bitcoin and reach a new all-time high. To find out, let’s analyze the charts.
S&P 500 Index:
The S&P 500 Index (SPX) reached a new all-time high on May 15, indicating that the bulls are in control. However, the bears are not likely to give up easily. If they manage to pull the price below the breakout level of 5,265, it may suggest that the bullish momentum has weakened. The index could then drop to the 20-day exponential moving average at 5,202. On the other hand, if the price rebounds off the moving averages, it will signal that the trend remains bullish, and the index will make another attempt to move higher towards 5,500. A break below the moving averages, however, would favor the bears and could lead to a drop to 5,000.
U.S. Dollar Index:
The U.S. Dollar Index (DXY) rebounded from the support line of an ascending channel pattern on May 16 but was unable to sustain the recovery above the 50-day simple moving average at 105. The downsloping 20-day EMA and the negative territory of the RSI suggest that the bears have the upper hand. If the price falls below the channel’s support line, the index could decline to 103.17 and then to 102.35. On the other hand, if the price bounces off the support line, it will indicate that the bulls are defending the level, and buyers will need to push the price above the moving averages to suggest that the index may remain within the channel.
Bitcoin:
Bitcoin has been trading within a tight range near the $68,000 level for the past three days. Typically, tight ranges near overhead resistance levels result in an upward breakout. The rising 20-day EMA and the positive territory of the RSI indicate that the path of least resistance is to the upside. If Bitcoin surpasses the $68,000 level, the BTC/USDT pair could begin its journey towards $73,777, which may see strong selling pressure from the bears. On the downside, the moving averages serve as crucial support levels. A break below the moving averages would suggest that the bulls have given up, and the pair could drop to $59,600 and subsequently to $56,552.
Ether:
Ether (ETH) faced resistance near the resistance line on May 19, but the bulls managed to hold the price above the 20-day EMA. The bulls will attempt to push the price above the resistance line, indicating a potential trend change in the near term. If successful, the ETH/USDT pair could rally to $3,400 and then to the overhead resistance at $3,730. On the other hand, if the bears pull the price below the 20-day EMA and the critical support at $2,850, the pair may drop towards the support line of the channel.
BNB:
BNB has been trading around the moving averages, showing indecision between the bulls and the bears. The flat moving averages and RSI just below the midpoint do not indicate a clear advantage for either side. A break below the support line of the triangle would suggest that the bears have taken control, and the BNB/USDT pair could decline to $536. Conversely, a break above the resistance line would indicate that the bulls are in control, and the pair could retest the overhead resistance at $635.
Solana:
Solana has been gradually moving towards the immediate resistance at $185, indicating demand from the bulls. The $185 level may act as a minor hurdle, but if bulls overcome it, the SOL/USDT pair could surge to $205. However, if the price turns down from the current level or $185 and breaks below the moving averages, it will suggest that the bears are active at higher levels. The pair may then drop towards $140.
XRP:
XRP rose above the 20-day EMA on May 17, but the bulls could not sustain the higher levels, indicating that the bears are selling on relief rallies. The price is squeezed between the support line and the 50-day SMA. The flat 20-day EMA and RSI just below the midpoint suggest a balance between supply and demand. A break below the support line could lead to a drop to the critical support at $0.46, while a break above the 50-day SMA resistance could result in a surge to $0.57.
Toncoin:
Toncoin has been trading within a wide range between $4.72 and $7.67, suggesting uncertainty about the next directional move. The flat 20-day EMA and RSI near the midpoint indicate that the TON/USDT pair may remain within the range for some time. If the price bounces off the moving averages with strength, the pair may attempt to clear the overhead hurdle at $7.67. However, if the price continues to decline and breaks below the 50-day SMA, it would suggest that the bears have a slight advantage, and the pair could drop to the vital support at $4.72.
Dogecoin:
Dogecoin has been trading near the 20-day EMA for the past few days, indicating a balance between buyers and sellers. The flat 20-day EMA and RSI near the midpoint suggest that the DOGE/USDT pair may remain within the $0.12 to $0.17 range for some time. A break above $0.17 would indicate that the correction may be over, and the pair could surge to $0.21. Conversely, a break below $0.12 would complete a bearish head-and-shoulders pattern and open the doors for a drop to $0.08.
Cardano:
Cardano is struggling to break above the 50-day SMA, indicating strong resistance from the bears. The bears will try to pull the price below the 20-day EMA and challenge the support line. If the price rebounds from this level, it would suggest that the ADA/USDT pair may remain within the triangle for some time. On the other hand, if the price turns up from the current level, the bulls will attempt to overcome the resistance line. If successful, the pair may move towards $0.52 and then $0.57.
Please note that this article does not provide investment advice or recommendations. Trading and investing in cryptocurrencies carries risks, and readers should conduct their own research before making any decisions.