Bitcoin’s recent decline has not deterred analysts from maintaining a long-term bullish outlook. Despite a decline in price, the long/short ratio has continued to climb, according to analyst Philip Swift, co-founder of trading suite Decentrader and creator of data resource LookIntoBitcoin.
One factor contributing to analysts’ optimism is Bitcoin’s halving, which has followed a set cycle until now and is expected to continue. Investor and entrepreneur Alistair Milne cited previous cycles, stating that now is the time to buy.
However, in the short term, Bitcoin may face pressure due to a relief rally in the U.S. dollar index (DXY), which typically has an inverse correlation with Bitcoin’s performance.
To determine important support levels for Bitcoin and other top cryptocurrencies, let’s examine the charts of the top 10 cryptocurrencies.
Bitcoin has formed a long-legged doji candlestick pattern, indicating indecision among buyers and sellers. The sellers have resolved to a downside break below the support line of the symmetrical triangle pattern. Moving averages have completed a bearish crossover, with the 20-day EMA slipping below the 50-day SMA. With the RSI in negative territory, bears are in command and the next target on the downside is $25,250. If Bitcoin rebounds off this level, the bulls may attempt to drive the BTC/USDT pair above the resistance line. However, a break below $25,250 could open up potential downside to $20,000.
Ether has turned negative, with traders selling on rallies. The ETH/USDT pair broke and closed below the support line, indicating the resumption of the correction. The pair could next reach the 61.8% Fibonacci retracement level of $1,663, which is likely to attract strong buying by the bulls. A break and close above the 20-day EMA will indicate that bears may be losing their grip, and the ETH price may then reach $2,000.
BNB continued its southward journey and is near immediate support at $300. This level had acted as strong support in the past and is likely to be defended by the bulls. In the near term, the $300 level may start a rebound, but that is likely to face strong selling at the 20-day EMA.
XRP’s price struggles to sustain above $0.43, indicating lack of demand at higher levels. The downsloping 20-day EMA and RSI near oversold territory suggest that bears are in control. Sellers will try to sink the XRP/USDT pair below $0.40 support, which may complete a 100% retracement and plummet to $0.36. If the XRP price bounces off $0.40, the bulls will again try to push and sustain the pair above $0.43.
Cardano’s May 11 candlestick shows that bulls are trying to buy dips to the uptrend line. However, downsloping 20-day EMA and RSI in negative territory suggest that bears have the upper hand. A break below the uptrend line could pull the ADA price to $0.33 and then to $0.30. If bulls thrust the price above the moving averages, Cardano’s price could rally to the neckline of the inverse head-and-shoulders pattern.
Dogecoin’s price struggles to start a relief rally. If the bears pull the price below $0.07, the DOGE/USDT pair could fall to $0.06, which is likely to act as support. If DOGE’s price turns down from the downtrend line and breaks below $0.06, the pair may plunge to the critical support at $0.05.
Polygon has extended its decline below the breakdown level of $0.94. The MATIC/USDT pair may turn up and retest the breakdown level of $0.94, but a turn down from that level will suggest that bears have flipped the level into resistance. The SOL/USDT pair may descend to $18.70 if sentiment remains negative.
Polkadot bounced off the strong support at $5.15 but faces strong selling near $82. Bears will try to yank the price below $75, which could resume the downtrend and slide toward the crucial support at $65.