Bitcoin (BTC) has been trading within a range for several days, indicating a battle between the bullish and bearish sides. Mosaic Asset, a trading firm, believes that the easing of financial conditions could lead to a risk-on trade, potentially causing a breakout in Bitcoin’s price to the upside.
The founder and CEO of CryptoQuant, Ki Young Ju, stated in a post on X that in 2020, Bitcoin remained near $10,000 for six months with high on-chain activity before surging to $64,000 in 2021. A similar trend is now being observed in 2024, with approximately $1 billion being added daily to new whale wallets, likely for custody purposes.
Despite the lack of a breakout, Bitcoin has seen an almost 11% rally in May, marking the first positive close after three years of negative monthly performance in May. This positive momentum gives buyers confidence to continue the bullish performance into June.
To determine whether buyers can defend support levels in Bitcoin and altcoins, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis:
On May 30, Bitcoin bounced off the support line of a symmetrical triangle pattern but failed to sustain higher levels. In order for the bulls to take control, they will need to push the price above the triangle, potentially triggering a rally towards the overhead resistance at $73,777. However, strong defense from the bears is expected at this level. On the other hand, if the price continues to decline and breaks below the support line, it would indicate that the bears have taken control. In this scenario, the BTC/USDT pair could drop to $64,600 and eventually to the crucial support at $59,600. It is likely that the bulls will enter the market between $56,550 and $59,600.
Ether Price Analysis:
Ether (ETH) is attempting to bounce off the breakout level of $3,730, which suggests that the bulls are defending this level. The rising 20-day EMA ($3,559) and the positive RSI indicate that the bulls have the upper hand. Buyers will aim to push the price towards the strong overhead resistance at $4,100. If this level is breached, it could pave the way for a rally to $4,868. However, if the ETH/USDT pair turns down and breaks below $3,730, it would indicate a weakening of the positive momentum. If the bears manage to push the price below the 20-day EMA, the advantage would shift in their favor.
BNB Price Analysis:
BNB has been gradually moving towards the uptrend line, which is expected to act as a strong support level. If the price rebounds strongly from this line, the bulls will attempt to push the BNB/USDT pair towards the overhead resistance at $635. Breaking above this level would complete an ascending triangle pattern with a target of $775. However, if the price falls below the uptrend line, it would invalidate the bullish pattern and could lead to a decline towards $536 and subsequently to the vital support at $495.
Solana Price Analysis:
The failure of the bulls to initiate a strong bounce in Solana from the 20-day EMA indicates a lack of demand at current levels. The bears will aim to strengthen their position by pushing the price below $162, potentially causing the SOL/USDT pair to drop towards $140. Although there is a minor support at the 50-day SMA ($152), it is unlikely to hold. However, if the price turns up from the current level and rises above $174, it would suggest that the bulls are trying to regain control. In this case, the pair could climb towards $189 and eventually to $205.
XRP Price Analysis:
XRP is being pushed below the moving averages by the bears, and if they succeed, the next stop is likely to be the support line. The bulls have defended this line on three previous occasions, indicating that they will try to do so again. If the price rebounds strongly from the support line, the XRP/USDT pair could rise towards $0.57. Breaking and closing above this level would complete an ascending triangle pattern with a target of $0.68. However, if the price continues to decline and breaks below the support line, it would suggest that the bulls have given up, potentially leading to a plunge towards the critical support at $0.46.
Dogecoin Price Analysis:
The bulls are struggling to keep Dogecoin above the moving averages, indicating that the bears are selling during every minor recovery. If the price falls below the 50-day SMA ($0.15), the DOGE/USDT pair could decline towards $0.14. This level may act as a support, but if it is broken, the slide could extend towards the crucial support at $0.12. On the other hand, if the price rebounds from $0.14, it would signal demand at lower levels, and the pair may consolidate between $0.14 and $0.18 for some time. Breaking and closing above $0.18 would open the doors for a rally towards $0.21.
Toncoin Price Analysis:
Toncoin continues to trade near the moving averages, indicating a lack of aggressive buying or selling pressure from traders. The flat 20-day EMA ($6.39) and the RSI near the midpoint suggest that the range-bound action between $4.72 and $7.67 may continue for a few more days. However, if the price drops below $6, the advantage could shift in favor of the bears, potentially causing the TON/USDT pair to drop towards $4.72. On the upside, a break above $6.73 would suggest that the bulls are back in control, and the pair may climb towards $7.67.
Shiba Inu Price Analysis:
The failure of the bulls to push Shiba Inu above the overhead resistance of $0.000030 has resulted in a pullback to the 20-day EMA ($0.000025). If the price rebounds from the moving averages, the bulls will once again attempt to drive the SHIB/USDT pair above $0.000030. If successful, the pair could rally towards $0.000033 and then $0.000039. Conversely, if the price continues to decline and breaks below the support line, it would indicate that the bears are attempting a comeback. In this case, the pair may slump towards $0.000018, where buyers are likely to step in.
Cardano Price Analysis:
Cardano has continued to decline and has reached the support line of a symmetrical triangle pattern. The bulls are expected to aggressively defend this level. If the price bounces off the support line and rises above the moving averages, it would suggest that the ADA/USDT pair may remain inside the triangle for some more time. A break and close above the triangle could trigger a strong upward move towards $0.62. However, if the price turns down and breaks below the support line, it would signal that the uncertainty has resolved in favor of the bears. This could lead to a downward move towards the next support at $0.35.
Avalanche Price Analysis:
Avalanche has been trading within a range between $29 and $40, indicating a balance between supply and demand. If the price falls below the 50-day SMA ($36), the bears will attempt to push the AVAX/USDT pair towards the strong support at $29. This level is likely to attract strong buying, keeping the pair within the range for some more time. The next directional move is expected to occur after the price breaks above $42 or below $29. Breaking above $42 would potentially lead to a surge towards $50, while a break below $29 could sink the pair to $20.
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.