BTC, BNB, XMR, ETC, MANA

The Dow Jones Industrial Average has fallen for eight straight weeks, the first long losing streak from 1923. On May 20, the S&P 500 briefly dipped into bearish territory, indicating that traders continue to sell risky assets for fear of a recession.

Due to its close correlation with US stock markets, Bitcoin (BTC) remained under pressure for many weeks. The bulls are trying to push Bitcoin to noisiest on weekends and avoid an even longer losing streak.

Bitcoin’s performance in the first five months was the worst since 2018, indicating that sellers are in control. However, after several weeks of weakness, cryptocurrency markets could be on the verge of a bear market.

What are the critical levels that can signal the start of a sustained recovery? Let’s study the charts of the top 5 cryptocurrencies that can outperform in the short term.

BTC/USDT

Bitcoin rebounded from crucial support at $28,630 on May 20, indicating strong buying near this level. The bulls are trying to push the price above the downtrend line, which could be the first indication that the selling pressure may be easing.

Above the downtrend line, the BTC/USDT pair may rally to the 20-day exponential moving average (EMA) ($31,887). The bears will likely defend this level vigorously. If the price turns lower from the 20-day EMA, the bears will again attempt to sink the pair below $28,630.

If they succeed, the pair could drop to $26,700. This is an important level to watch as a break and close below it can open the door down to $25,000 and then to $21,800.

On the other hand, if the buyers push the price above the 20-day EMA, the pair might attempt a rally towards the 61.8% Fibonacci retracement level at $34,823. If this level is reached, the pair could rally to the 50-day simple moving average (SMA) ($37,289).

The 4-hour chart shows that the price is stuck between the downtrend line at $28,630. The 20-EMA and 50-SMA have flattened out and the Relative Strength Index (RSI) is just above the midpoint, suggesting a balance between supply and demand.

This balance can skew in favor of the buyers if they push and hold the price above the downtrend line. If that happens, the pair could start its march north towards 200-SMA.

On the contrary, if the price declines from the current level, the bears will try to drag the pair down below $28,630 and gain the upper hand.

BNB/USDT

Binance O Coin (BNB) rebounded strongly from critical support at $211 and reached broad resistance at the 20-day EMA ($323). This is an important level to defend for bears, as a breakout and close above it may indicate that a bottom may be forming.

Above the 20-day EMA, the BNB/USDT pair may rally to $350 and later to the 50-day SMA ($376). This level may again act as a tough hurdle, but if the bulls push the price above it, the pair could rally to the 200-day SMA ($451).

Contrary to this assumption, if the price is falling sharply from the 20-day EMA, it will suggest that the bears have not given up yet and are continuing to sell at higher levels. The pair could then drop to $211. If the price recovers from this level, the pair could consolidate between $211 and $320 for a few days.

The bulls are trying to push the price above the overhead resistance at $320. If they succeed, the pair could rally to $350. The bears will likely defend this level aggressively. If the price drops $350, the pair could drop back down to $320.

If the price rebounds from this level, the pair could stay in the range between $320 and $350 for some time. The bullish momentum could break above the 200-SMA and the pair could rally to $380 and then to $400.

On the other hand, if the price declines from the current level, the pair may drop to $286 and then to $272.

XMR/USDT

O Monero (XMR) fell below the strong support at $134 on May 12, but the bears were unable to sustain the lower levels. This suggests aggressive buying on the dips. The price rebounded strongly from the 20-day EMA ($179).

If the bulls push and hold the price above the 20-day EMA, the XMR/USDT pair could rally to the overhead resistance zone between the 200-day SMA ($202) and the 50-day SMA ( $212). The Bears are expected to mount a strong defense in this area.

If the price declines from this zone, but the bulls stop the subsequent decline at the 20-day EMA, this will suggest a possible trend change. On the other hand, if the price drops from the current level, the bears will try to pull the pair to $150 and then to $134.

The 4-hour chart shows the formation of lows and highs. The bears attempted to pull the price below the 50-SMA, but the bulls managed to defend the level. This suggests a shift in sentiment from selling on the highs to buying on the lows.

The pair could rally at the 200-SMA where the bears could offer strong resistance. If the bulls breach this barrier, the pair could rise to $225. Contrary to this assumption, if the price declines and breaks below the 50-SMA, the pair could fall to $150. A break below this level could challenge the price. solid support at $134

ETC/USDT

O Ethereum Classic (ETC) fell sharply from $52 on March 29 to $16 on May 12. The bulls are attempting to start a rally which may face resistance at the 20-day EMA ($23).

If the price turns lower from the 20-day EMA, the bears will again attempt to resume the downtrend, pulling the ETC/USDT pair below the critical support at $16.

On the contrary, if the buyers push the price above the 20-day EMA, it will suggest the start of a stronger relief rally. The positive divergence of the RSI also indicates the possibility of a recovery in the short term. The pair can then rally to the 38.2% Fibonacci retracement level at $30, where the bears can mount strong resistance.

The price has been trading between $19 and $23 for some time. This suggests that the bulls are trying to form a higher low, but the bears continue to pose a big challenge at higher levels. The flattening of the 20-EMA and 50-SMA does not offer a clear advantage for bulls or bears.

If the buyers are pushing the price above $23, it will suggest the start of a new upward move. The pair may first rally to the 200-SMA and then to $33. On the other hand, if the price drops below $19, the bears will take over. They will then attempt to sink the pair to $16.

MANA/USDT

O Decentraland (MANA) declined the 20-day EMA ($1.24) on May 16, but a positive sign is that the bulls did not allow the price to hold below the psychological level at $1.

The buyers will again try to push the price above the 20-day EMA. If successful, the MANA/USDT pair could rally to the 50-day SMA ($1.72). The bears can once again mount a strong resistance at this level, but if the bulls overcome this hurdle, the pair could start its march north towards the 200-day SMA ($2.72).

Contrary to this assumption, if the price drops below $1, the bears will try to sink the pair towards the crucial support at $0.60. A breakout and close below this level can initiate the next leg of the downtrend.

The pair is stuck between $0.97 and $1.36, indicating bulls are buying lows below $1 and bears are selling on rallies. The 20-EMA and 50-SMA have stabilized, indicating that the consolidation may continue for some time.

If the buyers push the price above the 50-SMA, the pair could rally up to the range resistance at $1.36. The bullish momentum could increase if the buyers breach this barrier. On the other hand, the bears could take over if the price breaks below the support at $0.97.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should do your own research when making a decision.

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