Bitcoin (BTC) is witnessing a see-saw battle between the bulls and the bears. After receiving more than $595 million in inflows into the spot Bitcoin exchange-traded funds on May 3 and May 6, the tide turned on May 7 with an outflow of $15.7 million, according to Farside Investors data.
Irrespective of the short-term uncertainty, crypto bull Anthony Pompliano remains bullish for the long term. While speaking to CNBC, Pomp said that Bitcoin’s 200-day simple moving average hit a new all-time high above $50,000, indicating that the long-term trend remains bullish.
The sideways price action has not deterred institutional investors from investing in spot Bitcoin ETFs. Quantitative trading firm Susquehanna International Group said in its filing that it had acquired more than $1 billion worth of shares of Bitcoin spot ETFs in the first quarter of 2024.
Could buyers protect the support levels in Bitcoin and altcoins and prevent a collapse? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin’s recovery hit a wall at the 50-day simple moving average ($65,829) on May 6, indicating that the bears are vigorously defending the level.
The BTC/USDT pair could descend to $59,600 and later to $56,500, which remains the key support to watch out for. If the price plunges below $56,500, the next stop is likely to be the 61.8% Fibonacci retracement level of $54,298 and then $50,000.
If the bulls want to prevent the downside move, they will have to quickly shove the price above the 50-day SMA. If they do that, the pair is likely to pick up momentum and rally to the overhead resistance at $73,777.
Ether price analysis
The bears are fiercely defending the zone between the 20-day exponential moving average ($3,116) and the resistance line of the descending channel pattern in Ether (ETH).
The bears will try to strengthen their position by pulling the price below the vital support at $2,850. If they manage to do that, the ETH/USDT pair could start the next leg of the downtrend to the channel’s support line.
Contrary to this assumption, if the price turns up from $2,850, it will suggest that the bulls are protecting this level with vigor. The bulls will have to drive the price above the resistance line to signal a potential trend change.
BNB price analysis
BNB (BNB) has been trading near the moving averages for the past few days, indicating uncertainty about the next directional move.
If the price maintains below the moving averages, the bears will try to yank the BNB/USDT pair down to $536 and next to the solid support at $495. A bounce off this level could signal that the range-bound action may extend for a while longer.
If the price turns up from the current level and breaks above $635, it will suggest that the bulls have overpowered the bears. The pair could then resume its uptrend toward the next target objective of $692.
Solana price analysis
Solana (SOL) has been consolidating between $162 and $126 for several days, indicating indecision among the bulls and the bears about the next directional move.
The flat 20-day EMA ($146) and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. If the price slips below the 20-day EMA, the bears will try to pull the SOL/USDT pair down to $126. A break below this support could start a downtrend to the psychological support at $100.
On the other hand, if the price turns up and breaks above $162, it will indicate that the corrective phase may be over. The pair could rally to $185 and later to $205, which is likely to act as a stiff barrier.
XRP price analysis
XRP’s (XRP) price action over the past few days has formed a tight range between $0.57 and $0.46. Traders generally sell near the resistance, and that is what happened on May 6.
The 20-day EMA ($0.53) has flattened out, and the RSI is just below the midpoint, suggesting equilibrium between buyers and sellers. If the price remains below the 20-day EMA, the possibility of a drop to $0.46 increases.
If the price maintains above the 20-day EMA, the XRP/USDT pair could rise to $0.57. The bulls will have to drive and sustain the price above this resistance to seize control. The pair could then attempt a rally to $0.67.
Dogecoin price analysis
Dogecoin (DOGE) turned lower from the 50-day SMA ($0.17) on May 6 and fell below the 20-day EMA ($0.15) on May 7.
The bears will try to strengthen their position and tug the price toward the crucial support at $0.12. This level is likely to witness solid buying by the bulls. If the price rebounds off the support, it will suggest that the DOGE/USDT pair may stay range-bound between $0.12 and the 50-day SMA for a few more days.
Buyers will have to overcome the barrier at the 50-day SMA to open the doors for a possible rally to $0.21. On the downside, a break below $0.12 will complete a bearish head-and-shoulders pattern and start a downtrend.
Toncoin price analysis
Toncoin (TON) turned down from the 50% Fibonacci retracement level of $6.13, indicating that the bears are selling on relief rallies.
The flattish 20-day EMA ($5.64) and the RSI near the midpoint suggest a balance between supply and demand. If the price rebounds off the moving averages with strength, the bulls will try to clear the overhead hurdle at the 61.8% Fibonacci retracement level of $6.49. If they succeed, it will suggest that the corrective phase may be over.
Alternatively, the advantage will tilt in favor of the bears if the price slips below the moving averages. The TON/USDT pair could then slump to the solid support at $4.72.
Related: Why is Solana (SOL) price down today?
Cardano price analysis
Cardano (ADA) is getting squeezed between the 20-day EMA ($0.47) and the support line, signaling a breakout is around the corner.
It is difficult to predict the direction of the breakout with certainty, hence it is better to wait for the price to start a directional move before placing large bets. If the price breaks above the 20-day EMA, the ADA/USDT pair could rise to the 50-day SMA ($0.53) and later to $0.57.
On the contrary, if the price turns down and breaks below the support line, it will signal that the bears remain in the driver’s seat. The pair may skid to $0.40, which is a necessary support to watch out for. A break below this level could sink the pair to $0.35.
Avalanche price analysis
Avalanche (AVAX) turned down from the overhead resistance of $40 on May 6, signaling that the bears are active at higher levels.
The flattish 20-day EMA ($36.44) and the RSI in the negative territory point to a possible drop to the support of the range at $29. A bounce off this level could keep the pair stuck inside the $29 to $40 range for some more time.
The advantage will tilt in favor of the bulls after they push and maintain the price above $40. Conversely, a break and close below $29 will indicate that the bears have seized control. The AVAX/USDT pair could dive toward the pattern target of $18.
Shiba Inu price analysis
Shiba Inu (SHIB) turned down from the 50-day SMA ($0.000026) on May 6, indicating that the bears are aggressively defending the level.
The price action of the past few days has formed a symmetrical triangle pattern, signaling indecision between the bulls and the bears. If the price plummets below the triangle, it will indicate that the bears have the upper hand. The SHIB/USDT pair could then drop to the 78.6% Fibonacci retracement level of $0.000017.
Instead, if the price bounces off the triangle’s support line, it will suggest demand at lower levels. The pair may spend some more time inside the triangle. A break and close above the triangle will signal advantage to the bulls.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.