Bitcoin (BTC) rallied strongly after falling near its realized price of $24,000 on May 12, suggesting some bulls went against the herd and bought the drop. According to on-chain analytics platform CryptoQuant, exchange balances declined by more than 24,335 Bitcoin on May 11-12, suggesting bulls may have started bottom fishing.
However, macro investor Raoul Pal is not confident that a bottom has been reached. In an exclusive interview with Cointelegraph, Pal said that if stock markets experience a period of capitulation, crypto markets are likely to crash as well before forming a bottom. He expects the current bearish phase to end after the US Federal Reserve stops raising interest rates.
Bear markets are known for sharp recovery rallies that are used to exit long positions or initiate short positions. The price eventually turns down and makes a new low. Lows are only confirmed in hindsight. Therefore, investors should consider accumulating in phases rather than going all-in during a bear market.
For now, investors want to know what key overhead levels can act as resistance. Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin rebounded from $26,700 on May 12 and formed a doji candlestick pattern. This suggests that selling pressure may be easing. The recovery picked up steam on May 13 and bulls pushed the price above the psychological $30,000 level.
The recovery rally could face resistance near $33,000 and again at the 20-day exponential moving average (EMA) ($34,903). If the price turns down from the overhead resistance, the bears will make another attempt to sink the BTC/USDT pair below $26,700 and resume the downtrend.
If they succeed, the selling could accelerate and the pair could drop to $25,000 and later to $21,800.
Contrary to this assumption, if bulls halt the next drop above $28,805, it will indicate accumulation on dips. That could increase the chances of a break above the 20-day EMA. If so, the pair could rally to the 50-day simple moving average (SMA) ($40,210).
ETH/USDT
Ether (ETH) broke below the $2,159 support on May 11 and later slipped below the psychological $2,000 level on May 12. The bulls bought the drop to $1,800 which started a recovery rally.
The buyers will now attempt to push the price above the $2,159 breakdown level. If successful, the ETH/USDT pair could gain momentum and rally to the 20-day EMA ($2,554). This is an important level to watch as a break and close above it will suggest the decline may be over.
Contrary to this notion, if the price turns down from current levels or the 20-day EMA, it will suggest that sentiment remains negative and traders will sell near overhead resistance levels. The bears will then try again to sink the pair below $1,700.
BNB/USDT
BNB fell sharply on May 12, but the long tail on the day’s candlestick shows that bulls were aggressively defending the critical support at $211. This triggered a recovery rally that has reached the $350-$320 resistance zone.
If bulls push the price above $350, it will suggest the decline may be over. The recovery could reach $413 after that. Such a move could indicate that the BNB/USDT pair could get stuck in a wide range between $211 and $692.
Contrary to this assumption, when the price turns down from the overhead resistance zone, it indicates that bears are active at higher levels. The price might then gradually drift towards the crucial $211 support. The bears need to sink the price below this level to start a new downtrend that could reach $175 and later $150.
XRP/USDT
Ripple (XRP) fell to $0.33 on May 12 as buying emerged. The bulls are attempting a rebound which is likely to face stiff resistance on a psychological level at $0.50.
If the price turns down from $0.50, the bears will again attempt to drag the XRP/USDT pair to $0.33. This is a key level for the bulls to defend as a break below it could lead to a drop to $0.24.
On the other hand, if buyers push the price above $0.50, the pair could rally to the 20-day EMA ($0.56). A break and close above this level will suggest the bulls are back in the game. The pair could then rally to the 50-day SMA ($0.70).
ADA/USDT
Cardano (ADA) plunged to $0.40 on May 12, which pulled the RSI into the heavily oversold territory. The buyers bought this drop and are trying to start a recovery rally.
The ADA/USDT pair could rally to the $0.74 breakdown level, which is an important level to watch for. If the price turns down from this resistance, it will indicate that the bears are not yet giving up and are selling on rallies. The pair could then retest the strong support at $0.40.
Contrary to this assumption, if bulls propel the price above $0.74, it will indicate that the bears may lose their footing. The pair could then recover to the psychological $1 level, where the bears are likely to mount strong defenses again.
SOL/USDT
Solana (SOL) has been in a strong downtrend for the past few days. The price dropped to $37 on May 12, which pulled the RSI deep into oversold territory. This started an aid rally on May 13th.
The bulls are likely to find selling in the zone between the 38.2% Fibonacci retracement level at $59 and the 50% retracement level at $66. If the price turns down from this zone, the bears will attempt to continue the downtrend by dragging the pair below $37. If they succeed, the SOL/USDT pair could drop to $32.
Contrary to this assumption, a break above $66 could extend the recovery to the $75 breakdown level. The bulls need to clear this barrier to signal that the downtrend may be coming to an end.
DOGE/USDT
Dogecoin (DOGE) crashed to $0.06 on May 12, but on a small plus side, the bulls have bought this drop. This triggered a relief rally that traded near the breakdown level at $0.10.
The long wick on the May 13 candlestick indicates that the bears are aggressively defending the $10 level. If the price turns down from this resistance, the bears will attempt to extend the downtrend by dragging the DOGE/USDT pair below $0.06. If they succeed, the next stop could be $0.04.
Alternatively, if bulls push the price above $0.10, the pair could rally to the 20-day EMA ($0.12). This is an important level to watch as a break and close above it could signal the start of a stronger recovery.
Related: 3 Reasons Cardano May Keep Going Down Despite ADA Price Rising 58%
DOT/USDT
Polkadot (DOT) has been in a downtrend for a few days. Buyers stepped in to halt the decline near the strong support at $7 on May 12 as indicated by the long tail on the daily candle.
The buyers will now attempt to sustain the price above the $10.37 breakdown level. If successful, the DOT/USDT pair could rally to the 20-day EMA ($13.68). This level is likely to attract strong selling from the bears. If the subsequent decline stops at $10.37, it will indicate that the downtrend may weaken.
Conversely, if the price turns down sharply from the current levels or the 20-day EMA, the probability of a retest at $7 increases. Below this level, the decline could extend to $5.
AVAX/USDT
Avalanche (AVAX) broke below the crucial $32 support on May 11 and bears attempted to extend the decline on May 12. However, the long tail on the daily candlestick suggests strong buying at lower levels.
The bulls have propelled the price above the $32 breakdown level, which is the first sign of strength. If the AVAX/USDT pair sustains above $32, the bulls will attempt to push the price down to the overhead resistance at $51. The bears should vigorously defend this level.
Alternatively, if the price turns down from the 38.2% Fibonacci retracement level at $41.09, it will indicate that sentiment remains negative and bears are selling on rallies. The pair might then retest the strong support at $32 and later $23.
SHIB/USDT
Shiba Inu (SHIB) plunged below the psychological level at $0.000010 on May 12, but the long tail on the daily candle suggests buying at lower levels. This led to a rebound on May 13th.
The SHIB/USDT pair could rally to the breakdown level near $0.000017, which is likely to attract strong selling from the bears. If the price turns down from there, the bears will make another attempt to sink and sustain the pair below $0.000010.
On the other hand, if bulls can push the price above $0.000017 and the 20-day EMA ($0.000018), it will indicate that the markets have rejected the lower levels. The pair could then rally to the 50-day SMA ($0.000023).
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You should do your own research when making a decision.
Market data provided by HitBTC Exchange.
https://cointelegraph.com/news/price-analysis-5-13-btc-eth-bnb-xrp-ada-sol-doge-dot-avax-shib BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB