Altcoins showed impressive double-digit gains after Bitcoin bulls successfully pulled BTC price back above the $61,000 level.
Price Analysis
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Bitcoin (BTC) bulls are trying to stage a comeback by pushing the price above the psychologically crucial level of $60,000. Veteran trader Peter Brandt said in a X post that if Bitcoin holds the most recent lows and moves higher, it will be considered a “very common bull market continuation chart construction.”
Analysts are bullish on the long-term prospects of Bitcoin but do not expect the uptrend to start in a hurry. Bitfinex Alpha market report said that Bitcoin could stay range-bound for one to two months “with swings of $10,000 on either side.”
Traders are likely to keep a close watch on the spot Bitcoin exchange-traded funds. According to Farside Investors data, the Bitcoin ETFs witnessed outflows of $563 million on May 1. The sentiment is likely to pick up after the Bitcoin ETFs witness net inflows for a few successive days. Former BitMEX CEO Arthur Hayes believes the sell-off has ended, and the crypto markets may head higher.
What important resistance levels may act as a roadblock for the recovery? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin is taking support in the zone between the 50% Fibonacci retracement level of $58,017 and the 61.8% retracement level of $54,298.
The bulls pushed the price back above the breakdown level of $59,600 on May 3, indicating that the recent fall may have been a bear trap. However, the bears are unlikely to give up easily. They will try to stall the relief rally at the 20-day exponential moving average ($63,366) and then at the 50-day simple moving average ($66,151).
If the price turns down from the moving averages, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then make one more attempt to sink the BTC/USDT pair below $56,500. If they succeed, the pair may slump to $54,298.
Conversely, a break above the 50-day SMA will suggest that the pair may extend its stay inside the range for some more time.
Ether price analysis
Ether (ETH) fell below the $2,850 support on May 1, but the long tail on the candlestick shows solid demand at lower levels.
The downsloping moving averages and the RSI below 45 show that the bears have a slight edge. If the price turns down from the current level or the 20-day EMA ($3,152), the bears will try to yank the ETH/USDT pair to the support line of the descending channel pattern.
Contrarily, if the price rises above the 20-day EMA, it will suggest that the selling pressure could be reducing. The bulls will have thrust the pair above the resistance line to indicate the end of the downtrend.
BNB price analysis
BNB (BNB) has been oscillating inside the large range between $495 and $635 for the past several days, indicating indecision between the bulls and the bears.
If the price sustains below the moving averages, the BNB/USDT pair could slide to the strong support at $495. Buyers are likely to buy this level and keep the range intact. However, if the bears prevail, the pair could start a downtrend to $460 and thereafter to $400.
Instead, if the price rises above the moving averages, the pair could climb to the overhead resistance of $635. This is a significant resistance for the bears to defend because a break above it could catapult the pair to $692.
Solana price analysis
The bears pulled Solana (SOL) below the $126 support but could not maintain the lower levels, indicating buying by the bulls.
The SOL/USDT pair has reached the 20-day EMA ($145), an important level to watch out for. If buyers overcome this barrier, the pair may climb toward the overhead resistance of $162. This level may attract selling by the bears.
The crucial support to watch on the downside is $126. If the price turns lower from the 20-day EMA and breaks below $126, it will signal the start of the next leg of the down move. The pair may then slump to $100.
XRP price analysis
XRP’s (XRP) relief rally has reached the 20-day EMA ($0.53), an essential level for the bears to defend if they want to maintain control.
If the price turns down from the 20-day EMA, the sellers will again attempt to tug the XRP/USDT pair to the strong support zone between $0.46 and $0.41. Buyers are expected to aggressively protect this zone.
The first sign of strength will be a break and close above the 20-day EMA. If this hurdle is cleared, the pair could reach $0.57, which may again pose a strong challenge. A break above this resistance could open the doors for a potential rise to $0.62.
Dogecoin price analysis
Dogecoin (DOGE) bounced off the $0.12 support on May 1, indicating that the bulls are trying to defend the level.
Buyers will try to push the price to the overhead zone between the 20-day EMA ($0.15) and the downtrend line. Sellers are expected to protect this zone with vigor.
If the price turns down from this zone, the bears will again attempt to sink the DOGE/USDT pair below the neckline near $0.12. If they do that, the pair will complete a bearish head-and-shoulders pattern. That may start a down move to $0.10 and eventually to $0.08.
This negative view will be invalidated in the near term if the bulls propel the price above the downtrend line.
Toncoin price analysis
Toncoin (TON) is finding support in the zone between the 50% Fibonacci retracement level of $4.90 and the 61.8% retracement level of $4.25.
The relief rally has reached the moving averages, which is an important level to watch out for. If the price turns down from the moving averages, the bears will again attempt to sink the TON/USDT pair below $4.25.
On the other hand, if buyers overcome the obstacle at the 20-day EMA ($5.53), it will suggest the start of a more robust recovery. The pair may then rise to $6.35, where the bears may mount a strong resistance.
Related: Bitcoin and Ether options worth $2.4B set to expire May 3, max BTC pain at $61K
Cardano price analysis
The bulls are trying to maintain Cardano (ADA) above the breakdown level of $0.46, but the bears are likely to put up an intense fight.
The zone between $0.46 and the 20-day EMA ($0.48) is likely to witness solid selling by the bears. If the price turns down sharply from this zone and breaks below $0.40, the ADA/USDT pair may start the next leg of the downtrend to $0.35.
Contrary to this assumption, if buyers shove the price above the 20-day EMA, it will signal that the selling pressure is reducing. The pair may then ascend to $0.52 and later to $0.57, which may act as a strong hurdle.
Avalanche price analysis
Avalanche’s (AVAX) price action of the past few days has formed a range of $29 on the downside and $40 on the upside.
The downsloping 20-day EMA ($36.56) and the RSI near 42 suggest that the bears have the upper hand. If the price turns down from the 20-day EMA, the bears will make another attempt to sink the AVAX/USDT pair below $29. If they manage to do that, the next leg of the down move to $27.24 may begin.
On the contrary, if buyers kick the price above the 20-day EMA, it will suggest buying at lower levels. The pair may then climb to $40. A break and close above this level will indicate that the bulls are attempting a comeback.
Shiba Inu price analysis
The long tail on Shiba Inu’s (SHIB) May 1 candlestick shows that the bulls are trying to defend the $0.000020 level.
The recovery attempt is likely to face selling at the moving averages. If the price turns down sharply from the moving averages, it will increase the likelihood of a drop below $0.000020. If that happens, the SHIB/USDT pair may plunge to $0.000018.
If buyers want to prevent the decline, they will have to drive and maintain the price above the moving averages. If they do that, it will indicate that the selling pressure is reducing. The pair may rise to $0.000028 and subsequently to $0.000033.
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.
