Bitcoin (BTC) sliced through the $60,000 support on May 1, signaling that the uptrend has weakened. While the fall has muddied the short-term picture for Bitcoin, the analysts remain bullish for the long term.
Traders latch on to every bit of negative news when the price action turns bearish. Investor sentiment received a beating on the muted response to the Hong Kong spot Bitcoin and Ether (ETH) exchange-traded funds (ETFs) that debuted on April 30. Continued outflows from the United States-based spot Bitcoin ETFs for the fifth consecutive day also did little to soothe nerves.
Crypto market data daily view. Source: Coin360
Every bull phase witnesses sharp corrections, which shake out the weak hands. The lower levels give an opportunity to the long-term investors to add to their portfolios. However, it is better to wait for the price to confirm a bottom before initiating large bets.
Could Bitcoin and the altcoins start a sharp recovery, trapping the aggressive bears? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin’s consolidation resolved to the downside on May 1, indicating that the bears have overpowered the bulls.
BTC/USDT daily chart. Source: TradingView
Buyers will attempt to push the price back above $59,600, but the bears are likely to have other plans. If the price turns down from $59,600, it will suggest that the bears have flipped the level into resistance. That will enhance the prospects of a drop to the 61.8% Fibonacci retracement level of $54,298.
This negative view will be invalidated in the near term if the price turns up 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 the $3,056 support on April 30, signaling that the bears are in command.
ETH/USDT daily chart. Source: TradingView
The selling continued on May 1, and the bears tugged the price below the solid support at $2,852. If bears sustain the price below $2,852, the ETH/USDT pair could move downward to $2,700 and subsequently to $2,400.
Time is running out for the bulls. If they want to prevent the decline, they will have to quickly push the price back above the moving averages. If they do that, it will indicate that the fall below $2,850 may have been a fake breakdown.
BNB price analysis
The long tail on BNB’s (BNB) April 30 candlestick shows that the bulls purchased at lower levels but they could not sustain the momentum.
BNB/USDT daily chart. Source: TradingView
The bears continued selling and yanked the price below the moving averages on May 1. The BNB/USDT pair could drop to the critical support at $495. This is an essential support for the bulls to defend because a break below $495 could sink the pair to $460 and later to $400.
Contrary to this assumption, if the price bounces off $495 and rises above the moving averages, it will suggest that the range-bound action may continue for some more time. The bulls will have to overcome the obstacle at $635 to start the next leg of the uptrend.
Solana price analysis
The failure of the bulls to start a rebound off $126 in Solana (SOL) shows that the bears remain in control.
SOL/USDT daily chart. Source: TradingView
There is a minor support at $116, but if this level cracks, the selling could accelerate, and the SOL/USDT pair could plunge to $100. The greater the fall, the longer it will take for the next leg of the uptrend to begin.
If bulls want to make a comeback, they will have to quickly push the price above the 20-day EMA ($144). That may trap the aggressive bears, resulting in a short squeeze. The pair may then ascend toward the 50-day SMA ($166).
XRP price analysis
XRP (XRP) tried to start a relief rally from the psychological level of $0.50 on April 29, but the bulls could not maintain the higher levels.
XRP/USDT daily chart. Source: TradingView
Sustained selling by the bears pulled the price below $0.50, opening the doors for a retest of the solid support at $0.46. The bulls are expected to fiercely defend the zone between $0.46 and $0.41 because a break below it may start a downtrend.
Alternatively, if the price bounces off $0.46 and rises above the 50-day SMA ($0.57), it will suggest that the bears are losing their grip. The XRP/USDT pair may then extend its stay inside the $0.41 to $0.74 range for several more days.
Dogecoin price analysis
Dogecoin’s (DOGE) fall picked up momentum after the price broke below the symmetrical triangle pattern.
DOGE/USDT daily chart. Source: TradingView
The bears have pulled the price below the neckline of the bearish head-and-shoulders pattern. If the price remains below $0.12, the selling could intensify, and the DOGE/USDT pair may slide to $0.10 and eventually to $0.08.
On the contrary, if the price quickly rises back above the neckline, it will indicate solid buying at lower levels. The bulls will gain strength on a break above the 20-day EMA ($0.15), and a potential trend change will be signaled above the downtrend line.
Toncoin price analysis
Toncoin (TON) broke below the 50-day SMA ($5.32) on April 30, indicating that the bears are maintaining their pressure.
TON/USDT daily chart. Source: TradingView
The bulls are likely to defend the zone between the 50% Fibonacci retracement level of $4.90 and the 61.8% retracement level of $4.25. Buyers will have to kick the price above the 20-day EMA ($5.58) to signal that the correction may be over. If that happens, the TON/USDT pair may attempt a rally to $6.24.
Instead, if the price continues lower and breaks below $4.25, it will signal that the uptrend has ended. That increases the risk of a drop to $3.32.
Related: Why is Bitcoin price down today?
Cardano price analysis
Cardano (ADA) is trying to start a recovery from $0.42, but the weak rebound suggests a lack of demand from the bulls.
ADA/USDT daily chart. Source: TradingView
The downsloping 20-day EMA ($0.48) and the RSI near the oversold zone suggest that the path of least resistance is to the downside. If the price skids below $0.42, the ADA/USDT pair could retest $0.40 support. The bulls are likely to defend the level with all their might because a break below it may 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 be losing their grip. If that happens, the pair may attempt a rally to the 50-day SMA ($0.57).
Avalanche price analysis
Buyers tried to push Avalanche (AVAX) back above the uptrend line on April 29, but the bears did not relent. This shows that the bears are trying to flip the uptrend line into resistance.
AVAX/USDT daily chart. Source: TradingView
There is a minor support at $31.92. But if this level gives way, the AVAX/USDT pair could plummet to $29.24. The zone between $27.24 and $29.24 may witness aggressive buying by the bulls.
Buyers will have to clear the downtrend line on the way up if they want to signal a comeback. The pair could then rise to $42 and thereafter to the 50-day SMA ($45.68). This level may attract selling by the bears.
Shiba Inu price analysis
The bulls tried to push Shiba Inu (SHIB) above the 20-day EMA ($0.000024) on April 30, but the bears held their ground.
SHIB/USDT daily chart. Source: TradingView
The SHIB/USDT pair could slide to $0.000020, which is likely to act as a strong support. Any rebound off this level is expected to face selling at the 20-day EMA. If the price turns down sharply from the 20-day EMA, the likelihood of a drop to $0.000018 increases.
The first sign of strength will be a break and close above the moving averages. Such a move will signal solid buying at lower levels. The pair may then attempt a rally to $0.000033, where the bears may mount a stiff resistance.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
