Bitcoin (BTC) fell below the $60,000 support level on May 1, indicating a weakening uptrend. Despite this short-term setback, analysts maintain a bullish outlook for the long term.
Negative news surrounding the debut of Hong Kong spot Bitcoin and Ether (ETH) exchange-traded funds (ETFs) on April 30, as well as continued outflows from US-based spot Bitcoin ETFs for the fifth consecutive day, have affected investor sentiment.
Every bull phase experiences sharp corrections that shake out weak investors and provide an opportunity for long-term investors to add to their portfolios. However, it is advisable to wait for the price to confirm a bottom before making significant bets.
Could Bitcoin and altcoins initiate a sharp recovery, trapping aggressive bears? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin’s consolidation broke to the downside on May 1, suggesting that bears have taken control. Buyers will attempt to push the price back above $59,600, but if the price turns down from this level, it could drop to the 61.8% Fibonacci retracement level of $54,298. A move above the 50-day simple moving average ($66,596) would invalidate this negative view in the near term.
Ether broke below the 20-day exponential moving average ($3,170) and the $3,056 support level on April 30, indicating bearish control. If bears sustain the price below $2,852, the ETH/USDT pair could move downward to $2,700 and subsequently to $2,400. Bulls must push the price back above the moving averages to prevent further decline.
The long tail on BNB’s (BNB) April 30 candlestick shows that bulls purchased at lower levels but couldn’t sustain momentum. If the price bounces off $495 and rises above the moving averages, it suggests range-bound action may continue, with the obstacle at $635 needing to be overcome for the next leg of the uptrend to begin.
The failure of bulls to rebound off $126 in Solana (SOL) indicates bear control. A break below the minor support at $116 could lead to a plunge to $100. Bulls must push the price above the 20-day EMA ($144) for a potential short squeeze and a move toward the 50-day SMA ($166).
XRP attempted a relief rally from $0.50 on April 29, but sustained selling by bears pushed the price below this level. A break below the solid support at $0.46 could start a downtrend, while a bounce off $0.46 and a move above the 50-day SMA ($0.57) would suggest weakening bear grip and potential range-bound action.
Dogecoin fell below the symmetrical triangle pattern and the neckline of the bearish head-and-shoulders pattern. If the price remains below $0.12, selling could intensify, with targets at $0.10 and $0.08. A rise above the neckline would indicate strong buying at lower levels and a potential trend change.
Toncoin (TON) broke below the 50-day SMA ($5.32), with bulls likely to defend the zone between the 50% and 61.8% Fibonacci retracement levels. A move above the 20-day EMA ($5.58) would signal the correction may be over, with a potential rally to $6.24. A break below $4.25 would suggest the uptrend has ended.
Cardano (ADA) is attempting a recovery from $0.42, but weak rebound suggests lack of demand from bulls. A move below $0.42 could retest $0.40 support, with a break below extending the decline to $0.35. Crossing the 20-day EMA ($0.48) is key for the bulls to signal weakening bear grip.
Buyers attempted to push Avalanche (AVAX) above the uptrend line on April 29, but bears showed resistance. A move below the minor support at $31.92 could lead to a slide to $29.24, with aggressive buying expected in the zone between $27.24 and $29.24. Clearing the downtrend line is necessary for a comeback, with targets at $42 and the 50-day SMA ($45.68).
Shiba Inu (SHIB) failed to surpass the 20-day EMA ($0.000024), with a potential slide to $0.000020 and $0.000018. Breaking above the moving averages would indicate solid buying and a rally attempt to $0.000033, with resistance likely at this level.
This article does not provide investment advice or recommendations. Risk is involved in every investment and trading move, and readers should conduct their own research before making decisions.