BTC and altcoins have been bouncing up from time to time, but technical analysis shows that the dominant trend will remain bearish for some time to come.
Bitcoin’s (BTC) close correlation with legacy markets continues to pose a hurdle, especially as US stock markets remain in a solid downtrend. The Dow Jones Industrial Average is on track for its eighth consecutive negative week and the S&P 500 is about to dip into the bear market.
Celsius (CEL) CEO Alex Mashinsky believes Wall Street short sellers are looking for weaknesses in crypto companies to “short and destroy.” Mashinsky blamed “Wall Street Sharks” for the collapse of Terra (LUNA) and an attempt to destabilize Tether (USDT) and Maker (MKR), as well as “many other companies” including Celsius.
Cryptocurrency market daily indicators. Source: Coin360
While bear markets are painful in the short term, they typically present good buying opportunities for long-term investors. However, it is important to remember that not all coins will return to their former glory when the next bullish phase begins.
Each bull market usually has a new group of leaders; Therefore, traders should try to identify cryptocurrencies that are leading the market rather than buying those that are lagging. Nick Carter put it beautifully when he said that everything will never come back and “some things die forever”.
Can bitcoin and altcoins break below their recent lows or will the bulls successfully defend support? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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Bitcoin bounced off the strong support at $28,630 on May 19, but the bulls failed to push the price above the downtrend line. This suggests that the bears are not giving up yet and will continue to sell on the rally.
BTC/USDT daily chart. Source: Trade View
The bears will attempt to sink the price below $28,630. If they succeed, BTC/USDT could fall to an intraday low of $26,700 on May 20. This is a key support to protect the bulls because if they don’t, the pair could continue the downtrend. Next support on the downside is $25,000 and then $21,800.
Contrary to this assumption, if the price recovers from $28,630 and scales above the downtrend line, it would indicate strong accumulation at lower levels. The buyers will then try to push the price towards the 20-day exponential moving average (EMA) ($32,332). If the bulls clear this hurdle, the pair could rally to the 61.8% Fibonacci retracement level at $34,823.
The bears pulled Ether (ETH) below the immediate support at $1,940 on May 18-19, but failed to capitalize on this move. The bulls bought the dip but failed to push the price towards the upper resistance at $2159.
Daily ETH/USDT chart. Source: Trade View
Strong selling from higher levels pushed the price towards the uptrend line on May 20th. If the ETH/USDT pair breaks the uptrend line, the decline could extend to the key $1,700 support. The bears need to sink the pair below this level to signal the start of the next leg of the downtrend.
Contrary to this notion, a rise in the price from the current level or $1,700 would mean buying on a dip. The pair will then make another attempt to clear the overhead at $2,159. If they succeed, it would mean that the pair may have bottomed out.
BNB has been consolidating near the upper resistance level at $320 for the past few days. Tight consolidation near strong resistance suggests that the bulls are not exiting their positions and are waiting for the rally to continue.
BNB/USDT daily chart. Source: Trade View
If the bulls push the price above the upper resistance zone between $320 and the 20-day EMA ($326), it would mean that the BNB/USDT pair may have bottomed. The pair could then start its journey north towards the 50-day simple moving average (SMA) of $381.
Conversely, if the price moves down from the upper resistance and breaks below $285, it would indicate that the bulls have given up and possibly