Bitcoin (BTC) broke the $60,000 support level on May 1st, signaling a weakening upward trend. Although the fall has clouded Bitcoin’s near-term outlook, analysts remain bullish on the long term.
Traders get all the negative news when the price action turns bearish. Investor sentiment took a hit due to the implicit reaction to the Hong Kong spot Bitcoin and Ethereum (ETH) exchange-traded fund (ETF) launched on April 30. Outflows also continued for five consecutive days in the U.S. spot Bitcoin ETF. It did little to calm my nerves.
Every bullish phase witnesses sharp corrections shaking the weak hand. The lower levels provide an opportunity for long-term investors to add to their portfolios. However, it is better to wait until the price confirms the bottom before starting to place large bets.
Could Bitcoin and altcoins lock in an aggressive downtrend and begin a sharp recovery? Let’s analyze the top 10 cryptocurrencies chart to find out.
Bitcoin Price Analysis
Bitcoin’s consolidation resolved to the downside on May 1, indicating that the bears had overwhelmed the bulls.
Buyers will attempt to push the price back above $59,600, but the bears likely have other plans. A decline in price from $59,600 would mean that the downtrend has reversed towards the resistance level. This would increase the chances of a decline to $54,298, which is the 61.8% Fibonacci retracement level.
This negative view will be invalidated in the near term if the price rises and breaks above the 50-day simple moving average ($66,596).
Ether Price Analysis
Ether broke below the 20-day exponential moving average ($3,170) and $3,056 support on April 30, signaling that bears were in control.
The selling continued on May 1, with the decline taking the price below solid support at $2,852. If the downtrend holds below $2,852, the ETH/USDT pair could fall to $2,700 and then $2,400.
Time is running out for the bull. If you want to stop the decline, you need to quickly push the price above the moving average. Doing so would indicate that a drop below $2,850 may be a spurious breakdown.
BNB price analysis
The long tail of the BNB (BNB) April 30 candlestick shows that bulls were buying at lower levels but were unable to maintain momentum.
The bears continued to sell and on May 1st the price fell below the moving average. The BNB/USDT pair may fall to the important support level at $495. This is an essential support for the bulls to defend, as a break below $495 could push the pair down to $460 and later $400.
Contrary to this assumption, if the price rebounds from $495 and rises above the moving average, it suggests that the range-limiting action may continue for some time. Bulls will need to overcome the $635 hurdle to initiate the next phase of the uptrend.
Solana Price Analysis
The bulls’ failure to initiate a bounce from $126 in Solana (SOL) shows that the bears are still in control.
There is some support at $116, but a break of this level could accelerate selling and send the SOL/USDT pair plummeting towards $100. The bigger the decline, the longer it will take for the next uptrend leg to begin.
For the bulls to bounce, they need to quickly push the price above the 20-day EMA ($144). This can trap an aggressive bear and result in a short squeeze. The pair could then rise towards the 50-day SMA ($166).
XRP Price Analysis
XRP (
Continued selling on the downside pushed the price below $0.50 and opened the door to a retest of solid support at $0.46. Bulls are expected to fiercely defend the $0.46 to $0.41 area. The reason is that if it breaks below this area, a downtrend may begin.
Alternatively, if the price bounces from $0.46 and rises above the 50-day SMA ($0.57), it means that the downtrend is losing strength. The XRP/USDT pair may then remain within the $0.41-$0.74 range for a few more days.
Dogecoin price analysis
The downtrend in Dogecoin (DOGE) gained momentum after the price fell below a symmetrical triangle pattern.
The decline dragged the price below the neckline of the bearish head and shoulders pattern. If the price remains below $0.12, the selling may intensify and the DOGE/USDT pair may fall to $0.10 and eventually $0.08.
Conversely, if the price quickly rises back above the neckline, this would indicate solid buying at lower levels. The bulls will be strengthened by a break above the 20-day EMA ($0.15), signaling a potential trend change above the downtrend line.
Toncoin price analysis
Toncoin (TON) broke below its 50-day SMA ($5.32) on April 30th, indicating that the bears are maintaining pressure.
Bulls are likely to defend the area between the 50% Fibonacci retracement level of $4.90 and the 61.8% retracement level of $4.25. Buyers would need to push the price above the 20-day EMA ($5.58) to signal that the correction is over. If that happens, the TON/USDT pair could try to rise to $6.24.
Instead, if the price continues lower and falls below $4.25, it signals the end of the upward trend. This increases the risk of a decline to $3.32.
Related: Why did Bitcoin price fall today?
Cardano Price Analysis
Cardano (ADA) is trying to start a recovery from $0.42, but the weak bounce suggests a lack of demand from the bulls.
The bearish 20-day EMA ($0.48) and RSI near the oversold zone indicate that the path of least resistance is to the downside. If the price falls below $0.42, the ADA/USDT pair could retest the $0.40 support. Bulls are likely to do their best to defend this level as a break below this level could extend the decline to $0.35.
The 20-day EMA remains the key overhead resistance that needs to be crossed to suggest that the bears may lose control. If that happens, the pair could try to rally to the 50-day SMA ($0.57).
Avalanche Price Analysis
Buyers attempted to push Avalanche (AVAX) above the rising trend line on April 29th, but the decline did not abate. This shows that the bears are trying to turn the uptrend line into a resistance line.
There is some support at $31.92. However, if this level is broken, the AVAX/USDT pair could plummet to $29.24. The area between $27.24 and $29.24 could see aggressive buying by the bulls.
If buyers want to signal a bounce, they need to clear the rising trend line. The pair could then rise to $42 and thereafter to its 50-day SMA ($45.68). This level could induce selling on the downside.
Shiba Inu price analysis
Bulls tried to push Shiba Inu (SHIB) above the 20-day EMA ($0.000024) on April 30, but bears held it there.
The SHIB/USDT pair could fall towards $0.000020, which is likely to act as strong support. Any bounce away from this level is expected to result in selling at the 20-day EMA. If the price declines sharply from the 20-day EMA, the chances of a decline towards $0.000018 increase.
The first sign of strength is a breakout and close above the moving average. This move would be a solid buy signal at lower levels. The pair could then attempt a rally up to $0.000033, where bears may encounter strong resistance.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.