Bitcoin (BTC) is on track to finish the week with a cut of over 5%, pulling several altcoins down with it. However, the cryptocurrency saw a solid bounce on May 12, with analysts anticipating a potential recovery.
Concerns Over Bitcoin
According to Material Indicators, the lack of “whale” support at lower levels could be a concerning sign for Bitcoin, with the bullish perspective invalidated if it sustains below the 200-week moving average.
Uncertainty in the Market
The progress on debt ceiling talks between Congress and the White House is expected to take center stage in the coming days. The uncertainty and potential risks of a U.S. default could keep the equities market rally in check, but it’s difficult to predict its effect on Bitcoin and altcoins.
Analysis of Top Cryptocurrencies
Bitcoin has entered a corrective phase, with most altcoins breaking below their respective support levels. However, there are a few cryptocurrencies that are showing positive signs. Let’s analyze the charts of the top five cryptocurrencies that may turn up in the near term.
Cryptocurrency Charts Analysis
Bitcoin’s long tail on May 12 candlestick indicates aggressive buying by the bulls, with resistance from the bears at the downsloping 20-day exponential moving average ($27,959). The price must clear the hurdle at the resistance line to regain control and retest the overhead resistance at $31,000.
Cardano (ADA) saw a solid rebound off the uptrend line on May 11, with the price likely to soar toward the neckline of the inverse H&S pattern. However, the price may drop to the uptrend line and weaken it, allowing for a potential fall to $0.30.
Cosmos (ATOM) bounced back from the $10.20 support and may rally above the 50-day SMA ($11.28), invalidating the bearish descending triangle pattern. The support to watch on the downside is $10.20, and a break below it could lead to a plummet to $8.50.
Lido Dao (LDO) rebounded off the $1.60 support and may rally above the 20-day EMA ($1.95). The bears are trying to protect the 20-day EMA, but buyers expect the recovery to continue. The bulls may propel the price above the overhead resistance at $1.98, completing a bullish double bottom pattern.
Arbitrum (ARB) has seen support near the psychologically important level of $1, with the bulls aggressively buying the dips. The bears have been attempting to stall the recovery at $1.20, but if the price breaks above it, the ARB/USDT pair could rise to $1.40 and later to $1.50.