of bitcoins (BTC) volatility has further reduced this week and is on track to form an inside bar pattern on the weekly chart. Although the bulls find it difficult to clear the upper hurdle in the $30,000 to $31,000 zone, a positive sign is that they have not given way to the bears.
It's not just cryptocurrencies, even the S&P 500 index has been range-bound for the past few days. This indicates that the markets are waiting for a trigger to start the next directional move.
While near-term price action is uncertain, analysts are optimistic for the longer term. Trader Titan of Crypto highlighted a potential signal on the Bollinger Bands monthly chart, which projects a rally to $63,500 in about a year.
While most of the major cryptocurrencies have given up some ground over the past week, there are still some pockets of strength. Let's analyze the charts of five cryptocurrencies that may appear in the short term.
Bitcoin Price Analysis
Bitcoin turned down sharply from the resistance line of the symmetrical triangle pattern on May 6, indicating that the bears are unwilling to let the bulls pass. One minor positive is that the bulls have been buying the dips to the support line of the triangle, as seen from the long tail of the day's candle.
The flat 20-day exponential moving average ($28,819) and the RSI near the midpoint do not indicate a clear advantage for either the bulls or the bears.
If the price breaks below the triangle, it will suggest that the bears are trying to take over. The BTC/USDT pair may drop to $26,942 first and then to $25,250.
On the other hand, a breakout and close above the triangle will suggest that the bulls have absorbed the offer. That may start a rally to $32,400 where the bears are expected to mount a strong defense again.
The buyers pushed the price above the triangle, but the long wick of the candlestick shows that the breakout turned out to be a short-term bull trap. BTC price fell sharply and plunged to the support line of the triangle.
The bounce from this level has reached the moving averages, which is a key near-term level to watch out for. If the price of Bitcoin turns down from the current level, it will increase the chances of a break below the support line.
Conversely, if the buyers push the price above the moving averages, the pair can rally to the resistance line. The bulls will have to push and hold the price above this level to initiate a move higher.
Ether Price Analysis
ether (ETH) faced a sharp rejection above the psychological resistance of $2,000 on May 7. This indicates that the bears have not given up and continue to protect the upper levels of resistance.
The 20-day EMA ($1,903) has leveled off and the RSI is close to the midpoint, indicating that the ETH/USDT pair may remain range bound in the short term. The limits of the range could be between $2,000 and $1,785.
A consolidation just below the local high is a positive sign. It shows that the bulls are in no rush to book profits, raising the possibility of a break above $2,200.
Conversely, if the price falls below $1785, it will suggest that the bears have taken over. That could start a slide to $1,619.
The 4-hour chart shows that the bears were unable to take advantage of the break below the 50 SMA. This shows that the selling pressure is easing to lower levels. The bulls are trying to stage a rally by holding the price above the 20 day EMA. If they can pull it off, the pair will try to retest the crucial resistance at $2,000.
Conversely, if the ETH price turns down from the current level and falls below the 50 SMA, it will suggest that the bears are in control. That could sink the pair to the support line.
Monero Price Analysis
money (XMR) is trying to hold above the moving averages, which indicates that the bulls are trying to come back.
The flat 20-day EMA ($156) and the RSI just above the midpoint indicate a balance between supply and demand. If the buyers push the price of XMR above the neckline of the inverse head and shoulders pattern, the odds will tilt in their favor.
The XMR/USDT pair can then start a new upward movement. There is a minor resistance at $181, but if it is crossed, the pair can reach $187.
Instead, if the price turns down from the current level or the neckline, it will suggest that the bears remain active at higher levels. The sellers will then try to pull the price below the $149 support, opening the door for a drop to $130.
The 4-hour chart shows that the price bounced off the 50 SMA but the bulls were unable to break through the resistance line. This shows that the bears are selling rallies. If the price recovers from the 20 day EMA, it will suggest that sentiment is turning positive and traders are buying on dips.
The bulls will then make another attempt to clear the upper hurdle. If they manage to do that, the pair could rally to $162 first and then $164.
Alternatively, if the price turns down and falls below the 50-SMA, it will suggest that the bears are in control. That will increase the probability of a retest of the support line.
Related: The Ethereum Foundation just sold $30 million worth of Ether, but will the ETH price fall this time?
OKB Price Analysis
OKB (OKB) is trading inside a large symmetrical triangle pattern. Generally, in this setup, traders buy near the support line and sell near the resistance.
The bears try to keep the price of OKB below the 50-day SMA ($45.57), while the bulls try to recapture the level. If the price rises from the current level or bounces off the support line, it will suggest a demand at lower levels.
If the buyers push the price above the 20-day EMA ($46.87), it will suggest that the OKB/USDT pair can extend its stay inside the triangle for longer.
Contrary to this assumption, if the bears sink the price below the triangle, it will suggest that the setup has behaved like a reversal pattern. That could start a new downtrend that is likely to take the pair to $37.
The 4-hour chart shows that the bulls are trying to defend the horizontal support near $44.35 but have not been able to push the price above the moving averages. This suggests that every minor relief rally is selling off. If the price turns down from the current level and falls below $44.35, the pair can drop to $41.70.
Conversely, if the price rises above the moving averages, it will indicate accumulation at lower levels. The pair could first rally to $49.50 and then attempt a rally to $53.
Rocket Pool Price Analysis
Rocket Pool (RPL) is looking strong as it is trading above the moving averages. This shows that the bulls are buying dips.
The bulls will have to push the price above the overhead resistance at $53.45 to signal that the corrective phase may be over. Thereafter, the RPL/USDT pair may attempt a rally to $58.
Another possibility is that the RPL price rally from the 20-day EMA ($48.36) but turn down from $53.45. That will signal a possible range-bound action between the 50-day SMA ($46.13) and $53.45 for some time.
A break and close below the 50-day SMA will be the first indication that the bears are in command. That will open the doors for a potential drop to $37.
The 4-hour chart shows that the bears are trying to hold the price below the 20-day EMA, while the bulls are trying to push the price above it. If the buyers are successful, the pair can rally to the downtrend line. This is the key short-term level to watch. If this resistance is broken, the pair can rally to $53.45.
Conversely, if the price turns down from the current level and breaks below the 50 SMA, the price risks falling to the support line. The bulls are likely to defend this level fiercely.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
Post navigation
Previous Post
Shockya: Breaking News and Politics
