Bitcoin (BTC) has reached a critical support zone and if there is a bounce from this level, BTC and 4 altcoins could rise even higher in the short term.
Weakness in Bitcoin has also dragged altcoin projects down.
The S&P 500 and Nasdaq indexes fell for five consecutive weeks, indicating that investors continue to shy away from risky investment vehicles. Bitcoin’s close correlation with the US stock markets has kept its price under pressure. BTC extended its decline over the weekend and now has suffered six consecutive weekly losses for the first time since 2014. Weakness in Bitcoin also dragged down the entire cryptocurrency market, whose market cap fell below $1.6 trillion.
After Bitcoin’s six consecutive weekly closes in the red, is it time to recover? As Kritokoin.com, we present the charts and analyst views of Bitcoin and 4 altcoin projects that show signs of stability in the near term.
Here are the expected levels and critical forecasts for Bitcoin and 4 altcoins
Bitcoin bounced back from the 20-day exponential moving average ($38,268) on May 5 and broke below the ascending channel support line. This move also invalidated the positive divergence on the relative strength index (RSI). The moving averages have started to drop and the RSI is approaching the oversold zone. This indicates that it is under the control of bears. The BTC/USDT pair has a minor support at $34,322, but if the bulls fail to defend this level, the drop could go as low as $32,917. This is a very important level to consider because if it breaks, the pair could witness panic selling and the next stop could be at $28,805. If the price rises above $34,322, the recovery could face selling near the 20-day EMA. If the price drops from this level, it will indicate that sentiment remains negative and traders are selling on rallies. This could increase the chances of a downtrend resumption. This negative view may be invalidated in the short term if the bulls push the price above the 20-day EMA and sustain it. If this happens, the pair could rise to the 50-day simple moving average ($41,466).
4 Looking at the hourly chart, the downward moving averages show that bears are in control. However, the oversold levels on the RSI suggest that a relief rally or consolidation is possible in the near term. If the recovery fails to break above the 20-EMA, the bears can maintain the selling pressure and the pair could drop to $32,917. Conversely, a break and close above the 20-EMA could signal the start of a strong relief rally. The pair could then rise to the 50-SMA. Buyers will have to push and sustain Bitcoin price above $40,000 to signal an end to the downtrend.
Algorand (ALGO) has been trading inside the descending channel pattern for the past few days. The price bounced off the support line of the channel on May 1 and the bulls cleared the barrier at the 20-day EMA ($0.69), which indicated that selling pressure could ease. If buyers hold the price above the 50-day SMA ($0.76), the ALGO/USDT pair could rise to the resistance line of the channel. This is an important level for the bulls to overcome. If they succeed in this, it will suggest the beginning of a new uptrend. The pair could rally to $1.10 and then $1.25. On the other hand, if the price turns down from the resistance line, it will suggest that the pair may extend its stay inside the channel for a few more days. The bears will have to push and sustain the price below the channel to indicate the resumption of the downtrend.
4 Hourly chart, the 20-EMA pair rose and the RSI indicator was in the positive zone, giving buyers an advantage. There is a minor resistance at $0.80 and if the bulls clear this hurdle, the pair could rise to the resistance line of the channel. On the downside, the 20-EMA is the critical level to watch out for. If the price bounces back from this level, it will indicate that sentiment is turning in favor of the buyers. This could increase the likelihood of a break above $0.80. Alternatively, if the price breaks below the 20-EMA, the next stop could be the 50-SMA.
Monero (XMR) has been finding support near psychological support at $200 for the past few days. Buyers did not let the price slide below the downtrend line, which indicates that they are trying to turn the level to support. The bulls will have to push and sustain the price above the 20-day EMA ($223) to suggest that the corrective phase may be over. There is a minor resistance at $240, but if the bulls clear this hurdle, the XMR/USDT pair could rally to $289. On the contrary, if the price drops from the current level or the 20-day EMA, it will indicate that the bears have not given up yet. This could increase the likelihood of a break below $200. If this happens, selling could intensify and the pair could drop to $150. Looking at the
4 Hourly chart, XMR has formed a symmetrical triangle pattern showing indecision between the bulls and bears. If the bulls push the price above the resistance line of the triangle, it will suggest that the downtrend may be over. The pair could then rise to the 200-SMA and then rise towards the $252 pattern target. Conversely, if the uncertainty of the triangle is resolved to the downside, it will suggest that the triangle is acting as a continuation pattern. This could signal a resumption of the downward movement. The downside formation target is $164.
Tezos (XTZ) broke below the long-term uptrend line on April 29, and the bears successfully defended the breakout level on May 5. The bears have tried to start the downtrend and are struggling to sustain lower levels. If the bulls push the price above the uptrend line and sustain it, it indicates that the markets are rejecting the collapse. The XTZ/USDT pair could then attempt a rally to the region between the 50-day SMA ($3.18) and $3.40. This positive outlook could be invalidated if the price turns down from the uptrend line once again. If this happens, it will suggest that the bears have turned the uptrend line into resistance. A break and close below $2.39 could start a new downtrend that could reach $2. Looking at the
4 Hours chart, the 20-EMA parity flattened and the RSI indicator formed a bullish divergence on the 4-hour chart, suggesting that the negative momentum has weakened. The pair could now attempt a rally to $2.90 where the bears could offer strong resistance. A break and close above this level could open the doors for a possible rise to $3 and then $3.30. Alternatively, if the price drops from the current level or overhead resistance, it will indicate that the bears are selling in rallies. This could hold the pair between $2.90 and $2.39. The downtrend could accelerate if the bears sink the price below $2.39.
The last altcoin on the list: Theta Network (THETA)
Theta Network (THETA) token has been trading between $2.27 and $4.40 for the past few weeks. This range resolved to the downside on May 6, showing that the bears have the upper hand. Although the 20-day EMA ($2.57) is sloping downwards, the RSI pair is attempting to form a bullish divergence, indicating that the selling momentum is weakening. If the bulls push the price back above the $2.27 breakout, it could trap several aggressive bears who may have started short positions on the break below the range. THETA/USDT pair can then rise to the 20-day EMA. This is an important level to watch out for because if the bulls break through this hurdle, the pair could rally to the 50-day SMA ($3.10). This positive view could be invalidated if the price declines from the current level or the $2.27 breakout level and slides below $2.
4 Hourly chart, the Bulls buy lows close to the psychological level at $2. If buyers push the price above the downtrend line, it will suggest that the bears may be losing their strength. The pair could later rise to the overhead resistance at $2.64. This level could act as a strong resistance again, but if the buyers break this hurdle, the bullish momentum could increase. Contrary to this assumption, if the price turns down from the 20-EMA or the downtrend line, it will indicate that the bears are continuing to sell in the rallies. This could increase the likelihood of the altcoin price dropping below $2 and a resumption of the downtrend.