Bitcoin (BTC) continues to have a close correlation with the older markets, especially the equity market in the United States continues to have a strong bearish trend. The Dow Jones Industrial Average is on track for its eighth consecutive negative week and the S&P 500 is close to plunge into bear market territory.
Celsius (CEL) CEO Alex Mashinsky believes short sellers on Wall Street are looking for any weaknesses in crypto companies to “short and destroy”. Mashinsky blamed the “sharks of Wall Street” for trying to bring down Terra (LUNA) and destabilize Tether (USDT) and “many other companies” including Maker (MKR) and Celsius.
Bear markets, although painful in the short term, are good buying opportunities for long-term investors. However, it is important to remember that not all coins will return to their former glory when the next bull phase begins.
Each bull market usually has a new set of leaders, so traders should try to identify the cryptocurrencies that are leading the market, rather than buying laggards. Nick Carter put it well when he said that not everything will come back and that “some things die permanently.”
Can bitcoin and altcoins break down from their recent lows or will the bulls successfully defend the support? Let’s study the chart of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin bounced back with a strong support at $28,630 on May 19, but the bulls could not push the price above the downtrend line. This shows that the bears have not given up yet and continue to sell on the rallies.
The bears will try to pull the price below $28,630. If they manage to do so, the BTC/USDT pair could drop to its intraday low of May 20 at $26,700. This is an important support for the bulls to defend because if they fail to do so, the pair may resume its downtrend. The next support on the downside is $25,000 and then $21,800.
Contrary to the sentiment, if the price rises above $28,630 and rises above the descending trend line, it would suggest strong accumulation at lower levels. Buyers will then attempt to push the price towards the 20-day exponential moving average ($32,332). If the bulls overcome this barrier, the pair can rise to the 61.8% Fibonacci retracement level at $34,823.
ETH/USDT
The bears pulled Ether (ETH) below the immediate support $1,940 on May 18 and May 19, but they could not capitalize on the move. The bulls bought the downside but could not push the price above the overhead resistance of $2,159.
Strong selling at higher levels has pulled the price to the uptrend line on May 20. If the ETH/USDT pair breaks below the uptrend line, the downside could extend to the crucial support at $1,700. The bears would need to dip the pair below this level to suggest the start of the next phase of the downtrend.
Contrary to this sentiment, if the price rises above the current levels or $1,700, it would suggest a buy on the downside. After that the pair will make another attempt to overcome the upper barrier at $2,159. If they manage to do so, it would suggest that the pair has bottomed out.
BNB/USDT
Binance Coin (BNB) has been consolidating near the $320 upper resistance level for the past few days. A strong consolidation near a tight resistance indicates that the bulls are not dumping their positions as they expect the recovery to continue.
If the bulls push the price above the overhead resistance area between $320 and the 20-day EMA ($326), it would suggest that the BNB/USDT pair could break out of the downside. The pair can then begin its northward journey towards the 50-day simple moving average ($381).
Conversely, if the price drops below the upper resistance and breaks below $285, it would indicate that the bulls have given up and may close their positions. This can drag the pair to $265, and then to important support at $211.
XRP/USDT
Ripple (XRP) bounced back from the $0.40 to $0.38 support area on May 19, but the bulls could not clear the upper resistance at $0.45. This suggests that while the bulls are buying on the downside, the bears have maintained their selling pressure near the overhead resistance levels.
If the price continues lower and breaks below $0.38, the XRP/USDT pair could decline to $0.33. This is an important level to keep an eye on as a break below it could resume the downtrend. Then the pair can drop to $0.24.
Contrary to this assumption, if the price once again rebounds from the support area, buyers will try to push the pair to $0.50. A break and close above this level will be the first signal that the pair is going down from the bottom. The next stop on the upside could be the 50-day SMA ($0.64).
ADA/USDT
The bulls are attempting to defend the $0.50 support in Cardano (ADA), but the bears are in no mood to give up their gains and continue to sell on every short rally.
If the price slides and sustains below $0.50, the ADA/USDT pair may retest the important support at $0.40. This is an important level for the bulls to defend as a break below it could signal a resumption of the downtrend. Then the pair can drop to $0.33 and then to $0.28.
Contrary to this assumption, if the price rises above the current level, buyers will try to push the pair above the 20-day EMA ($0.63). If they manage to do so, it would indicate that the selling pressure may ease. Then the pair can rise to the breakdown level of $0.74.
SOL/USDT
Solana (SOL) is in a downtrend. An attempt to initiate recovery in the bull market on May 19 failed as the bears continued selling. The bears pulled the price back below the psychological level at $50 on May 20.
If the price continues lower, the SOL/USDT pair may drop to $43. This level could act as a strong support, but if the bears pull the price below it, the next stop could be $37. If this level also breaks, the decline could extend to $32.
Conversely, if the price rises sharply from the current level or support, it would suggest accumulation by the bulls. Buyers will then try to push the pair to the 20-day EMA ($64). A break and close above this level could open the doors for a potential rally towards $75.
doge/usdt
Dogecoin (DOGE) rebounded from immediate support at $0.08 on May 18, but the recovery is facing selling at higher levels. This suggests that sentiment remains negative and traders are selling on every minor gain.
If the price continues lower and breaks below $0.08, the bears will visualize their chances and try to pull the DOGE/USDT pair below the May 12 intraday low of $0.06. If they manage to do this, then the next phase of the downtrend may begin and the pair may drop to $0.04.
This downside outlook could be invalidated in the short term if the price rises above or below current support levels and psychological resistance at $10. Such a move could open the door for a recovery to the 50-day SMA ($0.12).
related: Ethereum Forming a ‘Bear Trap’ Ahead of Merger – ETH Price at $4K Next?
dot / usdt
Polkadot (DOT) fell below $10.37 on May 18, but the bulls bought the decline and tried to push the price back above the level on May 19. However, the bears are holding their ground and attempting to turn $10.37 into resistance.
If the price declines below $9.22, the DOT/USDT pair may retest the support area between $8 and $7.30. The bears will need to sink and hold the price below this area to signal a resumption of the downtrend. The next support on the downside is $5.
Conversely, if the price bounces back from the support levels, the bulls will attempt to push the price higher to the 20-day EMA ($12). This level could act as a strong resistance, but if the bulls overcome this barrier, it would signal that sellers are losing their grip. The pair could then attempt a reversal to the 50-day SMA ($16).
AVAX/USDT
Avalanche (AVAX) has a declining trend. The price action over the past few days has formed a marker, which usually acts as a continuation pattern.
If price breaks below the flag’s support line, the AVAX/USDT pair may retest the crucial support at $23.51. A break and close below this level could signal a resumption of the downtrend. The pair can drop to $20 and then to $18.
Alternatively, if the price rises from the current level, buyers will try to push the pair above the flag. If they manage to do this, the pair may gain momentum and rise to the 20-day EMA ($42.35). The bulls will need to overcome this hurdle to challenge the breakout level at $51.
shib/usdt
The Shiba Inu (SHIB) has been stuck between $0.00010 and $0.000014 for the past few days, indicating the indecision between the bulls and the bears. This indicates that the bulls are trying to build a bottom but the bears are not allowing the rally to sustain.
If the price rises above $0.0000014, it would indicate that the bulls have absorbed the supply. This could clear the way for a potential rally to $0.000017 where the bears could once again present a strong challenge. The bulls need to clear this resistance to signal a possible trend change.
Contrary to this assumption, if the price falls below $0.00010, the pair can fall to the intraday low of May 12 at $0.000009. If this support is broken, the downside could extend to $0.000007 and then to $0.000005.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.
Market data is provided by hitBTC exchange.
