Bitcoin continues to trade in a wide range due to declining inflows into Bitcoin spot exchange-traded funds (ETFs), geopolitical tensions, and uncertainty about the extent of interest rate cuts by the U.S. Federal Reserve (Fed) in 2024.
The rally has stalled, but a positive sign for the bulls is that Bitcoin has not collapsed below the psychologically important $60,000 level. However, May can be a difficult month for buyers. Coin Glass data This shows that Bitcoin has ended May in the red for the past three years.
Another negative for the market in the short term is that investor interest in Bitcoin ETFs appears to be decreasing. Bitcoin ETFs posted net gains, according to Farside Investors data. outflow Although the numbers aren’t surprising, they show investors are taking a cautious approach following the halving.
According to Bitwise, the post-Bitcoin halving lull is nothing new. This is because it has occurred during three halvings since 2012. The company recently said: X post Although markets remain uncertain after the halving, significant gains are possible in the year following the halving.
In a similar vein, Bernstein said in a research note that the slowdown in Bitcoin ETF inflows is only a temporary pause and not the start of a worrying trend. The broker maintained its target objectives as follows: $150,000 Bitcoin by 2025.
Mark Yusko, CEO of Morgan Creek Capital, remains bullish on digital assets in the medium term. While speaking in interview Speaking on The Wolf Of All Streets podcast, Yusko said that about 1% of baby boomers’ wealth, which stands at around $30 trillion, is likely to enter the cryptocurrency space within 12 months. This is “more money than has ever been converted into Bitcoin.” “Within 15 years.”
The short term remains uncertain and the onus is on the bulls to defend support levels. What are the important levels to watch out for in Bitcoin and major altcoins? Let’s study the chart to find out.
BTC/USD market analysis
Our previous analysis showed that if the price rebounds from the $59,224 level, Bitcoin may not be able to break out of the range for some time, and that is exactly what happened.
The BTC/USD pair bounced from $59,573 on April 19, but the bulls failed to clear overhead resistance at the 50-day simple moving average (SMA). This suggests that the bears are selling at the rally.
The bearish 20-day exponential moving average (EMA) and the relative strength index (RSI) just below the midpoint suggest that the bears have a slight advantage. Sellers will make one more attempt to sink the pair below $59,224. If successful, the decline could extend to $52,100, allowing buyers to intervene to stem the decline. A deeper correction could delay the start of the next uptrend.
On the other hand, if the price bounces from $59,224 once again, it would be a sign that the bulls are aggressively defending the level. The bulls will then make one more attempt to push the price above the 50-day SMA. If that happens, the pair could rise to the resistance level of $73,835. Buyers will need to clear this hurdle to begin the next phase of the upward trend to $88,446.
ETH/USD market analysis
Ethereum fell from $2,865 on April 19, but the recovery hit a wall at the 50-day SMA. This means the bears are operating at a higher level. Bears will again try to push the price below the solid support level of $2,850.
However, the flat 20-day EMA and RSI just below the midpoint suggest range-limiting action in the near term. The ETH/USD pair may fluctuate between $2,850 and the downtrend line for some time.
A breakout and close below $2,850 would indicate that the bears have overwhelmed the bulls. This could start a downtrend towards $2,700. This level is likely to attract strong buying from the bulls, but if the bears prevail, the pair could plummet to $2,165.
Conversely, if the price rises and breaks above the downtrend line, it is a sign that the bulls are attempting a rebound. The pair could then rebound to $3,730, which would act as a solid barrier.
BNB/USD market analysis
We noted in our previous analysis that Binance Coin would likely remain range-bound if it maintained the $495 level, which it did.
The BNB/USD pair rebounded from $512 on April 17 to begin a relief rally, but stalled at $618. This means the pair is facing selling near the $635 resistance.
Prices have fallen to the moving averages, which are essential supports to watch out for in the short term. If the price rebounds from the moving average, bulls will again attempt to overcome the $635 hurdle. Doing so would mean a resumption of the upward trend. The pair could then rise to $692.
Contrary to this assumption, if the price declines and falls below the moving average, this is a sign that the range-limiting action may continue for a few more days. If there is a downtrend and the price stays below $495, the bears will have the upper hand.
XRP/USD market analysis
A recovery began on April 22 above the 20-day EMA as bears repeatedly failed to keep XRP below the $0.48 support. However, the bulls were unable to sustain higher levels and the price fell back below the 20-day EMA. This shows that sentiment remains negative and traders are selling on the bounce.
The XRP/USD pair may go back down to the important support area of $0.48 to $0.42. Buyers are likely to defend this area with all their might, as a break below this area could start a new downtrend. Next support is $0.35 and then $0.30.
On the positive side, bulls would need to clear $0.57 resistance to indicate that selling pressure may ease. The pair could then attempt a rally up to $0.65. This move suggests that the pair could spend more time within a large range between $0.48 and $0.75.
ADA/USD market analysis
Cardano tried to recover but hit a wall at the 20th EMA. This suggests that the trend is still negative and traders are seeing the rise in the 20-day EMA as a selling opportunity.
Buyers are trying to defend the uptrend line, but the weak bounce shows the lack of aggressive buying. This increases the chances of a decline towards the important support level at $0.40. If this support holds, it would indicate that the bulls are actively defending the level. This could start a relief rally towards $0.52.
A break and close above $0.52 signifies the end of the correction phase. The ADA/USD pair may rise to $0.57 and then to $0.62.
Conversely, a drop below $0.40 signals a resumption of the downtrend. The pair could then plummet to $0.35.
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