After setting a questionable record of nine consecutive red weekly closes, Bitcoin (BTC)bitcoin) is trying to make up for it by starting a price recovery to end the losing streak. Analysts have repeatedly said that investors should not be afraid of a bear market because it is one of those. The best time to invest in projects with strong fundamentals Prepare for the next bull market phase.
CryptoQuant CEO Ki Young Ju highlighted that Unspent Transaction Outputs (UTXOs) older than 6 months accounted for 62% of the realized cap, similar to levels seen during the March 2020 crash.Therefore, Ki says Bitcoin could be close to the bottom of the formation cycle.
Bitcoin’s rally to $250,000 is hard to fathom in the current bearish environment, but billionaire investor Tim Draper remains bullish. Speaking on a May 24 YouTube show, Draper said that if more retailers start accepting bitcoin, women’s participation will increase as they shop with bitcoin.According to Draper, this could boost Bitcoin price above his $250,000 target.
Several analysts are calling for a bottom for Bitcoin, is now a good time to buy? Can the crypto market start to recover anytime soon? Let’s study the chart of the top 10 cryptocurrencies to find out.
Bitcoin broke above the downtrend line on May 30, and the bulls are trying to sustain the price above the 20-day exponential moving average (EMA) ($30,562). If they are successful, this will be the first sign that the bears may be out of control.
If the price sustains above the 20-day EMA, the BTC/USDT pair could rise to $32,659 and then the 50-day simple moving average (SMA) ($34,954). The 20-day EMA has flattened out and the Relative Strength Index (RSI) has risen above 46, suggesting that the bulls are trying to make a comeback.
Conversely, if the price turns back from the 20-day EMA, it will indicate that sentiment remains negative and traders are selling on rallies. The bears will then make another attempt to pull the pair below $28,630 and challenge the May 12 intraday low of $26,700. A break below this support could signal a resumption of the downtrend.
Ether (Ethereum) bounced off the important support at $1,700 on May 28 and headed towards the 20-day EMA ($2,026). This suggests that the bulls are trying to start a sustained recovery.
The RSI is showing a bullish divergence, suggesting that selling pressure may be diminishing. Buyers will try to push the price above the 20-day EMA and challenge the $2,159 breakdown level. If the bulls fail to clear this hurdle, the BNB/USDT pair could decline and consolidate between $1,700 and $2,159.
If the bulls push the price above $2,159, it will suggest that $1,700 could be a near-term bottom. The pair could then rally to the 50-day SMA ($2,504). This bullish view could be invalidated if the price turns down and falls below $1,700.
BNB Support was found near immediate support at $286 on May 27, suggesting that traders are buying dips. The bulls will now make another attempt to push the price above the overhead resistance at $320.
If they succeed, the BNB/USDT pair could rally to $350. The longer the price stays above $320, the more likely it is that it will bottom on May 12. If the bulls break the $350 barrier, the rally could reach $400.
On the other hand, if the price turns down from current levels or $350, it will indicate that the bears are selling on rallies. This could once again pull the price to immediate support at $286. If this support breaks, the pair could drop to $260.
Although Ripple (Ripple) fell below $0.38 on May 26, and the bears were unable to sustain the selling pressure. This started to recover on May 28 and has reached the downtrend line.
The bears have repeatedly defended strongly at the downtrend line; therefore, this is an important resistance to watch. If the price reverses from the downtrend line, the bears will attempt to drag the XRP/USDT pair below $0.37 and challenge the key support at $0.33.
Conversely, if buyers push and sustain prices above the 20-day EMA ($0.43), it would suggest that sellers may be losing control. The pair could then rally towards the psychological level of $0.50.
Cardano (ADA) fell below minor support at $0.46 on May 27, but the bears were unable to take advantage. The bulls bought the dip and the recovery started on May 28.
The relief rally picked up momentum on May 30 and the bulls are attempting to push the price above the 20-day EMA ($0.54). If successful, it would indicate that the ADA/USDT pair is attempting to form a bottom. The pair could then rise to $0.61 before attempting a rally to the $0.74 breakdown.
This positive view could be negated if the price turns down from the 20-day EMA. If this happens, the bears will make another attempt to sink the pair below $0.40 and start the next downtrend.
Solana (Sol) recovered from $40 on May 28, suggesting that lower levels continue to attract bullish buying. Buyers will now try to push the price above the 20-day EMA ($53).
If the bulls push the price above the 20-day EMA, it will indicate that the downtrend may be weakening. The SOL/USDT pair could then rise to $60 before rallying to the 50% Fibonacci retracement level of $66.
Conversely, if the price turns back from the current levels or the 20-day EMA, it will indicate that the bears are continuing to sell on rallies. This could increase the likelihood of a retest of $37.37. A break below this support could start the next downtrend.
Dogecoin (Governor) fell below $0.08 on May 26, but recovered strongly on May 27. This suggests aggressive buying at lower levels, but the bears are not ready to give up their advantage as they continue to vigorously defend the 20-day EMA ($0.09).
The bulls will make another attempt to push the price above the 20-day EMA. If they do, the DOGE/USDT pair could rise to the psychological level of $0.10. This level could act as resistance again, but if the bulls overcome this hurdle, the pair could rally towards $0.12.
Alternatively, if the price turns down from the 20-day EMA or $0.10, it will indicate that bears are active at higher levels. That could pull the pair down to $0.08 and then to May 12’s intraday low of $0.06.
dot (point) formed a doji candlestick pattern on May 27, indicating indecision between bulls and bears. This uncertainty resolved upwards, with the bulls pushing the price to overhead resistance at $10.37.
If buyers push the price above overhead resistance, it could open the doors for a rally to $12. If the bulls clear this hurdle, the next stop could be $14. A breakout and close above this resistance could indicate that the DOT/USDT pair may have bottomed.
This positive view could be invalidated if the price declines sharply from current levels and breaks below $8.56. That could lead to a decline to May 12’s intraday low of $7.30. The bears will have to sink the price below this level to signal a resumption of the downtrend.
avalanche(AVAX) fell below strong support at $23.51 on May 26, but the bears were unable to take advantage. The bulls bought the dip on May 27 and started a rally on May 28.
The bulls will try to push the price above the 20-day EMA ($32.42), an important level to watch. If the price turns back from this resistance, the bears will try to retest the May 27 intraday low of $21.35. If this support breaks, the AVAX/USDT pair could drop to the psychological $20 level.
The RSI is showing a positive divergence, indicating that selling pressure may be diminishing. If the bulls push the price above the 20-day EMA, the pair could rally to $38 before attempting a rise to $46.
SHIB / USDT
The bulls successfully defended the support at $0.000010 on May 27, leading to a rally on May 28. Shiba Inu (SHIB) continues to rebound and has reached the 20-day EMA ($0.000012), which could act as a strong resistance.
If the price turns down from the 20-day EMA, the bears will make another attempt to sink the SHIB/USDT pair below $0.000010. If this happens, the pair could retest the key support at $0.000009.
Alternatively, if the bulls push the price above the 20-day EMA, it will indicate that the downtrend may be weakening. Then, the pair could attempt a rally to $0.000014 before moving to the $0.000017 breakdown level. The bulls will have to clear this overhead hurdle to signal a possible change in trend.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk. You should do your own research when making a decision.
Market data provided by bitcoin exchange.