The recovery in Bitcoin and most major altcoins halted near respective overhead resistance levels, indicating that the bears are active at higher levels.
The United States stock market recovered sharply on May 17 and May 18 on hopes that the debt ceiling agreement could be reached, but the market gave back some of its gains on May 19 on reports of a temporary halt in the talks.
The U.S. Dollar Index (DXY), which had been rising for the past three days, turned down on May 19 after Federal Reserve Chair Jerome Powell hinted at an end to the rate hikes. While speaking at a conference in Washington D.C., Powell said that stresses in the banking system may restrict the need to raise rates as high as they “would have otherwise to achieve our goals.”
Daily cryptocurrency market performance. Source: Coin360
Although Bitcoin’s (BTC) short-term picture is uncertain, analysts remain bullish about the long term. Blockstream CEO and co-founder Adam Back recently said that “hyper-Bitcoinization” could soon come. That would boost the demand for Bitcoin, sending its price soaring. Back made a case that the number of “wholesalers” has been steadily rising, and if the trend continues, it could happen that 10 million people try to buy 1 Bitcoin over a few years, and that “would push the price out of reach.”
Do the charts signal a possible recovery in Bitcoin and the altcoins in the near term? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
The bulls again tried to drive the price into the symmetrical triangle pattern on May 17, but the bears fiercely guarded the level and pulled Bitcoin lower on May 18.
BTC/USDT daily chart. Source: TradingView
The BTC/USDT pair will continue to witness a tough tussle between the bulls and the bears in the area between the support line and $25,250.
The downsloping 20-day exponential moving average (EMA) at $27,590 and the relative strength index (RSI) in the negative territory indicate that bears have a slight edge. However, the failure of the bears to sustain the price below $26,500 shows that the selling pressure reduces at lower levels.
If buyers pierce the overhead resistance, the pair could start a rally to the 50-day simple moving average (SMA) at $28,412 and thereafter to the resistance line. A break above the triangle will turn the tables in favor of the bulls.
Ether price analysis
The bulls have been trying to drive Ether (ETH) above the 20-day EMA ($1,840) for the past few days, but the bears have not allowed that to happen.
ETH/USDT daily chart. Source: TradingView
The long tail on the May 16 to May 18 candlestick shows that the bulls continue to buy the intraday dips. This enhances the prospects of a break above the 20-day EMA. If this obstacle is cleared, the ETH/USDT pair could rise to the resistance line of the falling wedge pattern.
This is the key level to keep an eye on because a break and close above it will indicate the start of a new up move. On the downside, the bears will have to tug the price below the support line to start a downward move to $1,600.
BNB price analysis
BNB (BNB) continues to trade inside a descending channel pattern. The price turned down from the 20-day EMA ($315) on May 18, indicating that the sentiment remains bearish.
BNB/USDT daily chart. Source: TradingView
The first sign of strength will be a break and close above the 20-day EMA. That could clear the path for a likely rally to the resistance line. The bears are again expected to protect this level with vigor. If the price turns down sharply from the resistance line, it will suggest that the BNB/USDT pair may remain inside the channel for a while longer.
The bears are likely to have other plans. They will try to sink the price below the support line of the channel and challenge the crucial support at $280.
XRP price analysis
After struggling near the 20-day EMA ($0.45) on May 17, buyers cleared the barrier on May 18. This suggests that XRP (XRP) is witnessing a comeback by the bulls.
XRP/USDT daily chart. Source: TradingView
The flattening 20-day EMA and the RSI in the positive territory indicate that the selling pressure is reducing. There is a stiff resistance zone between the downtrend line and the 50-day SMA ($0.48), but it is likely to be crossed. If that happens, the XRP/USDT pair could start its northward march toward $0.54.
On the contrary, if the price turns down from the current level, it will suggest that the bears continue to sell on relief rallies. That could keep the pair stuck between the 50-day SMA and $0.40 for some time.
Cardano price analysis
The bulls tried to sustain Cardano (ADA) above the 20-day EMA ($0.37) on May 17 and 18, but the bears did not relent.
ADA/USDT daily chart. Source: TradingView
The bulls have not given up much ground from the 20-day EMA, which is an encouraging sign. This shows that every minor dip is being purchased. The bulls will again try to launch the price above the 20-day EMA. If they can pull it off, the ADA/USDT pair may first climb to the 50-day SMA ($0.39) and thereafter attempt a move to $0.44.
Time is running out for the bears. If they want to seize control, they will have to quickly yank the price below the uptrend line. That will open the doors for a potential fall to $0.30.
Dogecoin price analysis
The bulls tried to propel Dogecoin (DOGE) above the 20-day EMA ($0.07) on May 17, but the bears held their ground.
DOGE/USDT daily chart. Source: TradingView
The bulls may again try to clear the overhead hurdle, and if they manage to do that, the DOGE/USDT pair could rally to the 50-day SMA ($0.08). This level is likely to act as a barrier, but if crossed, it will suggest that the pair continues to swing inside the large range between $0.07 and $0.11.
Contrary to this assumption, if the price turns down from the current level and plummets below $0.07, it will indicate that the bears have overpowered the bulls. The pair could then slump to $0.06.
Polygon price analysis
Buyers drove Polygon (MATIC) above the resistance of the narrow range of $0.82 to $0.88 on May 17. Although the bears pulled the price back into the range on May 18, a minor positive is that the bulls purchased the intraday dips, as seen from the long tail on the day’s candlestick.
MATIC/USDT daily chart. Source: TradingView
The zone between the 20-day EMA ($0.91) and $0.94 is likely to witness strong selling by the bears. If bulls overcome this obstacle, the MATIC/USDT pair is likely to pick up momentum and reach the downtrend line.
Alternatively, if the price fails to rise above the 20-day EMA, it will indicate that the sentiment remains negative and the bears are selling on every minor relief rally. Sellers will then again attempt to sink the pair below $0.82.
Related: Bitcoin price risk? US debt deal to trigger $1T liquidity crunch, analyst warns
Solana price analysis
Solana (SOL) turned down sharply from the downtrend line on May 18, indicating that the bears are fiercely defending the level.
SOL/USDT daily chart. Source: TradingView
The bears will try to increase their advantage further by sinking the price below the strong support at $19.85. If they succeed, the SOL/USDT pair may first tumble to $18.70 and thereafter to $16.
Contrarily, if the price rebounds off the current level and climbs above the 50-day SMA ($21.81), it will indicate that the bulls are active at lower levels. The pair may then attempt a rally to $24 and subsequently to $27.12.
Polkadot price analysis
Polkadot (DOT) has been struggling to start a recovery, indicating that demand dries up at higher levels.
DOT/USDT daily chart. Source: TradingView
Many times, a tight consolidation near a strong support level tends to break to the downside. In this case, a break and close below $5.15 will complete a descending triangle pattern and open the doors for a possible decline to $4.22.
If bears want to prevent this fall, they will have to quickly drive the price above the 20-day EMA ($5.51). If they do that, the DOT/USDT pair could rise to the 50-day SMA ($5.97) and thereafter rally to the downtrend line. Buyers will have to overcome this resistance to indicate that the correction may be over.
Litecoin price analysis
Litecoin (LTC) turned down from the overhead resistance of $96 on May 18, but a positive sign is that the bulls did not allow the price to slip below the 50-day SMA ($89). This shows that the bulls are trying to flip this level into support.
LTC/USDT daily chart. Source: TradingView
The 20-day EMA ($87) has started to turn up, and the RSI is near 59, indicating that the bulls have the upper hand. Buyers will next make another attempt to clear the overhead hurdle at $96 and propel the LTC/USDT pair to $106.
This positive view will invalidate in the near term if the price turns down and breaks below the moving averages. Such a move will indicate that the pair may oscillate between $75 and $96 for some more time.
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