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Ethereum’s growing domination has kept markets focused on altcoins, but Bitcoin’s inability to maintain a price over $59,000 could send the whole market crashing.
The celestial rally in Ether (ETH) shows no signs of abating. The bulls quickly crossed the $4,000 barrier today, raising the largest altcoin’s market dominance to more than 19%.
Traders are not only buying in large quantities of Ether. Litecoin (LTC) and Cardano (ADA) have both reached new all-time highs, indicating a strong altcoin rally.
However, Bitcoin (BTC) seems to have lost steam as it struggles to stay over $60,000 a coin. This has reduced its market dominance to less than 44% for the first time since July 2018.
However, Bitcoin’s recent underperformance has not shaken the long-term bulls. In a recent interview with CNBC, Morgan Creek Capital Management founder and CEO Mark Yusko said that Bitcoin would rival the “monetary value” of gold.
“If the monetary value of gold is $4 trillion, then digital gold should rise to that level,” Yusko said. That means Bitcoin would climb to $235,000 in the future to meet Yusko’s forecast.
Let’s look at the maps of the top ten cryptocurrencies and see where the crucial support and resistance thresholds are.
Bitcoin has been sandwiched between the moving averages and the $58,966.53 resistance for the past two days. This tight range trading suggests a status of equilibrium between the bulls and the bears.
If the volatility subsides, the BTC/USDT pair could fall to $52,323.21. The bulls will continue to protect this help, and if they are successful, the pair will be able to stretch its consolidation between $52,323.21 and $58,966.53 for a few more days.
The rapidly expanding 20-day exponential moving average ($56,611) and the relative strength index (RSI) near the midpoint indicate a supply-demand equilibrium.
If the price remains above $58,966.53, the balance will change in favour of the bulls. This might lead to a march to an all-time high of 64,849.27. A break above this resistance level could mark the resumption of the uptrend.
Conversely, a break below $52,323.21 may indicate the start of a deeper correction to $46,985. A break below this support could trigger panic selling.
Ether’s rally has continued unabated. After forming a Doji candlestick pattern on May 9, the bulls have asserted their dominance today and pushed the price to a new all-time high. The sharp rally of the past few days has pushed the RSI above 83.
The RSI is deeply overbought, indicating a buying spree as traders dread losing out on the rally. In most cases, such rallies end after the last bull has purchased. The ETH/USDT pair may rise to $4,528.97 before reaching the psychological level of $5,000.
A correction for longer than three days may be the first indication of the bullish trend waning. A break below the 20-day moving average ($3,173) would mark the start of a more serious correction.
Binance Coin (BNB) rose to a new all-time high at $691.77 today but the bulls are struggling to sustain the price above the breakout level at $680. The long wick on the day’s candlestick suggests a lack of demand at higher levels.
Buyers are in charge, as shown by the upsloping moving averages, but the negative divergence on the RSI signals that bullish momentum may be fading. A break and close below the 20-day EMA ($599) could signal the start of a more serious correction.
If the price increases from the current level or the 20-day EMA, the bulls will make another attempt to drive and maintain the BNB/USDT pair above $680. If they are successful, the pair will be on their way to $760 and then $808.57.
Dogecoin (DOGE) witnessed a sharp dump on May 9 but the bulls aggressively defended the 20-day EMA ($0.44) as seen from the long tail on the day’s candlestick. However, the buyers could not extend the recovery today and the price has resumed its journey toward the 20-day EMA.
The 20-day EMA is steadily flattening out, and the RSI has fallen below 58, signalling that the bullish momentum is fading.
If the DOGE/USDT pair bounces off the 20-day EMA again, it will signal good buying at lower levels. A shift like this might keep the pair range-bound for a couple more days.
This viewpoint would be made null and void if the price falls below the 20-day EMA. If this occurs, the pair can fall to the 61.8 percent Fibonacci retracement stage of $0.38.
XRP has repeatedly broken above the downtrend line since May 6 but the bulls have not been able to sustain the breakout. This suggests that traders may be using the rallies to lighten their long positions.
Buyers would need to drive the price above $1.66 and keep it there in order to increase the chances of a retest of the 52-week peak at $1.96. The 20-day EMA ($1.45) is rapidly increasing, and the RSI is above 56, indicating a slight benefit for the bulls.
This bullish outlook will be made null and void if the price falls and breaks below the 20-day EMA. Such a change would imply that production outnumbers demand. After that, the XRP/USDT pair could fall to the 50-day simple moving average ($1.16).
Cardano made a large outside day candlestick pattern on May 9, indicating strong buying at the breakout level of $1.48. However, the bulls have not been able to sustain the momentum today and the altcoin has formed an inside-day candlestick pattern.
If the bulls do not give up any ground from where they are now, it would signal momentum, which could increase the chances of the uptrend resuming.
The rising 20-day EMA ($1.45) and an overbought RSI both mean that the direction of least resistance is to the upside. A break of $1.83 could pave the way for a rebound to $2, and then $2.25.
In contrast to this assumption, a bull trap would be shown if the ADA/USDT pair falls and splits below the 20-day EMA ($1.45). This might cause the price to fall to $1.28 and then to $1.
Polkadot (DOT) is stuck between the moving averages and the $42.28 overhead resistance. This tight range trading near the stiff resistance is a positive sign as it shows that traders are in no hurry to dump their long positions.
If the bulls can thrust and sustain the price above $42.28, it will suggest that demand exceeds supply. That could result in a rally to the all-time high at $48.36 where the bears are again likely to mount a stiff resistance.
However, if the buyers push the price above $48.36, the DOT/USDT pair could start its journey to $58.06.
Alternatively, if the price breaks below the moving averages, the pair could drop to $34.36 and then to $32.56. If that happens, the pair may extend its stay inside the $26.50 to $42.28 range for a few more days.
Bitcoin Cash (BCH) is facing stiff resistance near the 52-week high at $1,600.89 as seen from the long wick on today’s candlestick. If the price slips below $1,400, the altcoin could drop to the 38.2% Fibonacci retracement level at $1,263.10 and remain range-bound for a few days.
The first sign of weakness will be a break below $1,263.10 and the advantage will shift in favor of the bears if the BCH/USDT pair slips below the 20-day EMA ($1,134).
However, the upsloping moving averages and the RSI in the overbought zone suggest the path of least resistance is to the upside.
If the price rises from the current level or from $1,400 and breaks above $1,600.89, the pair could start the next leg of the uptrend, which has a target objective at $2,147.36.
Litecoin surged above the resistance line of the ascending broadening wedge pattern on May 9, indicating a pick-up in momentum. The altcoin hit a new all-time high at $412.76 today but the long wick on the candlestick suggests profit-booking at higher levels.
If the LTC/USDT pair rebounds off the breakout level, it will suggest that the bulls are buying every minor dip. That will increase the possibility of the resumption of the uptrend with the next target at $463.31 and then $500.
On the contrary, if the price re-enters the wedge, it will suggest that the breakout on May 9 was a bull trap. That could pull the price down to the 20-day EMA ($309). A strong rebound off this level will suggest the sentiment remains positive while a break below the 20-day EMA will clear the path for a drop to the support line of the wedge.
The bulls pushed Chainlink (LINK) above the resistance line of the ascending channel on May 5 but could not build up on the breakout. After hesitating for a few days, the bulls made a decisive up-move on May 9 and pushed the altcoin to $52.42.
However, the bulls struggled to maintain the rebound once more, and the bears are attempting to drag the market back into the ascending lane. If they are successful, the LINK/USDT pair could fall to the 20-day EMA ($43).
If the price bounces off the 20-day EMA, the bulls can attempt to restart the uptrend once more. A break below the 20-day EMA, on the other hand, would indicate that the recent breakout was a bull trap. The pair might then slip to the channel’s support side.