U.S. stocks surged on May 25-26, but Bitcoin (bitcoin) and altcoins did not follow a similar trajectory. This shows that traders are not confident that the cryptocurrency market has bottomed.
On-chain analytics firm Glassnode said, The number of Bitcoin whales has been decreasing On May 27, the indicator fell to its lowest level since July 2020.
On May 24, Bill Miller, Founder and Chief Investment Officer, Miller Value Partners Support bitcoin investment And called it an “insurance policy against financial catastrophe.”
Bitcoin’s drop looks like capitulation, JPMorgan said in a note to clients on May 25. Bitcoin and crypto markets are expected to reboundAnalysts at the bank believe that Bitcoin’s fair value is $38,000, which is about 30% higher than current levels.
Can Bitcoin follow the U.S. stock market higher, or will it decouple and continue to hover at lower levels? Let’s study the chart of the top 10 cryptocurrencies to find out.
Bitcoin fell below the strong support at $28,630 on May 26, but the bulls were unable to sustain lower levels. The long tail on the candlestick on the day indicates that the bulls are aggressively buying the dip.
The bulls are once again attempting to defend the support at $28,630, which is an important level to watch. If the price rises from current levels and breaks above the 20-day exponential moving average (EMA) ($30,868), it will indicate that the BTC/USDT pair may have bottomed. The pair could then rally to the 50-day simple moving average (SMA) ($35,721).
Conversely, if the price turns back from current levels or above resistance, it would indicate a lack of demand at higher levels. This could increase the odds of a break below $28,630. If this happens, the pair could retest the key $26,700 level. A break and close below this level could intensify selling and the pair could plummet to $20,000.
Ether (Ethereum) fell below the uptrend line on May 25, indicating that the bears are trying to reassert their supremacy. Selling momentum picked up on May 26, with prices falling below the May 12 intraday low of $1,800.
The bears are attempting to defend the key support at $1,700, but the rally lacks momentum. This shows that the bulls are not buying aggressively at the support level. This could encourage bears who are trying to sink the price and sustain it below $1,700. If they succeed, the ETH/USDT pair could plummet to $1,300.
Conversely, if the bulls are successful in holding the $1,700 support, the pair could start rising towards $2,159. This could keep the pair fluctuating between $2,159 and $1,700 for a few more days.
long wick in BNBThe May 25 candlestick shows that bears are selling on a rally near key overhead resistance at $350. The sell-off continued on May 26 and the price fell below the 20-day EMA ($320).
There is a small support at $286 and the bulls will try to stop the decline. If they are successful, it will show that market sentiment has shifted from selling the rallies to buying the dips. The bulls will then make another effort to push the price to $350.
Alternatively, if the price breaks below $286, it would suggest that aggressive bulls may be trapped after buying above $320 and may be closing their positions. This could take the BNB/USDT pair down to $260.
ripple (Ripple) fell below immediate support at $0.38 on May 26, but the long tail of the day’s candlestick indicated strong buying at lower levels. Buyers will try to push the price towards the downtrend line.
If the price turns down from the downtrend line, the bears will make another attempt to sink the XRP/USDT pair below $0.38. If that happens, the pair could fall to May 12’s intraday low of $0.33, where the bulls could mount a strong defense. The bears will have to pull the price below this support to signal a resumption of the downtrend.
On the other hand, if the bulls push the price above the downtrend line, the pair could rally to the 20-day EMA ($0.44). This level could once again act as a strong resistance, but if the bulls overcome this hurdle, the recovery could reach the psychological $0.50 level.
Cardano (ADA) between $0.49 and $0.56 settled the downside issue on May 26. The bulls are trying to defend the minor support at $0.46, but if they fail, the decline could extend to $0.40.
The downward sloping moving averages and the RSI near the oversold zone suggest that bears are in control. If the bears sink and sustain the price below $0.40, the selling momentum is likely to intensify and the ADA/USDT pair could plummet to $0.33.
Conversely, if the price bounces off current levels or support, it will indicate strong buying at lower levels. Then, the bulls will try to push the price above the 20-day EMA ($0.56). If they are successful, the pair could rally to $0.61 before rising to $0.74.
Solana (Sol) fell below immediate support at $47 on May 26, indicating that traders who may have bought at lower levels are closing their positions. This opens the door for a possible drop to key support at $37.37.
If the price bounces off $37.37, buyers will try to push the price above the 20-day EMA ($55). This is an important defensive level for the bears, as a breakout and close above this level would indicate that the SOL/USDT pair may have bottomed. Then, the pair could try to rally towards the overhead resistance at $75.
Alternatively, if the bears sink the price below $37.37, it would signal a resumption of the downtrend. The pair could then extend the decline to the next support at $32.
Dogecoin (Governor) trading in a tight range resolved the downtrend on May 26, with the bears pulling the price below $0.08. This indicates that supply exceeds demand.
If the bears sustain the price below $0.08, the DOGE/USDT pair could drop to the important support level of $0.06. Since this level acted as a strong support on May 12, the bulls may make another attempt to defend it. If this level holds, the pair could climb to the 20-day EMA ($0.09).
Another possibility is that if the bulls push the price back above $0.08, it will indicate lower demand. Buyers will then try to push the price towards the 20-day EMA. A breakout and close above this resistance will indicate that the bears may be losing control. The pair could then rally towards the psychological level of $0.10.
Polkadot’s (point) failed to climb and hold above the $10.37 breakdown level, attracting traders’ selling. Bears pulled the price below immediate support at $9.22 on May 26, but are struggling to hold lower.
The price bounced off the immediate support at $8.56 and the bulls are attempting to clear the overhead hurdle at the 20-day EMA ($10.88). If they manage to do this, it will indicate that the downtrend may be weakening.
Contrary to this assumption, if the price turns down again from the overhead resistance, the bears will try to pull the DOT/USDT pair below $8.56. If they do, the next stop could be $7.30.
The bulls are likely to defend this level aggressively, but if their efforts fail, the pair could start the next downtrend.
avalanche(AVAX) continued lower and broke below important support at $23.51 on May 26. This indicates that the downtrend has resumed.
While the downward sloping moving averages are in favor of the bears, the RSI in oversold territory suggests a relief rally or consolidation in the near term. If the price rises and rises above $23.51, it could trap several aggressive bears, leading to a bear squeeze. This could push the AVAX/USDT pair above the 20-day EMA ($34).
Alternatively, if the bears sustain the price below $23.51, the selling momentum could intensify and the pair could drop to psychological support at $20.
SHIB / USDT
Shiba Inu (SHIB) continue to be under pressure. Although the bulls defended the $0.000010 support, the rally lacked strength. This indicates weak demand at current levels.
The bears will try to drag the price below $0.000010, and if successful, the SHIB/USDT pair could drop to the key support at $0.000009. This is an important level to watch, as a break and close below it could signal a resumption of the downtrend. The pair could then drop to $0.000007.
Alternatively, if the $0.000010 level holds, the pair could rise to the 20-day EMA ($0.000013). This level could act as resistance again, but if broken, the upside could reach $0.000017.
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Market data provided by bitcoin exchange.