The stock market in the United States experienced a sharp rebound on May 17 and 18 due to optimism that an agreement on the debt ceiling could be made, yet some of the gains were lost on May 19 when news of a temporary suspension of negotiations surfaced.
The U.S. Dollar Index (DXY) had been increasing for the past three days, however, it decreased on May 19 after Federal Reserve Chair Jerome Powell suggested a conclusion to the rate hikes. While attending a gathering in Washington D.C., Powell remarked that pressures on the banking system may limit the necessity to raise rates as much as “they would have otherwise to accomplish our objectives.”
Although the outlook for Bitcoin (BTC) in the near future is unclear, analysts continue to be optimistic about the long term. Adam Back, CEO and co-founder of Blockstream, recently suggested that “hyper-Bitcoinization” could be on the horizon, which would drive up demand for Bitcoin and cause its value to skyrocket. Back argued that the amount of “wholesalers” has been steadily increasing, and if this trend continues, it is possible that in a few years, 10 million people could be vying to purchase a single Bitcoin, thus making it financially inaccessible.
Let’s analyze the graphs of the top 10 digital currencies to determine if a potential revival of Bitcoin and the altcoins is indicated in the short term.
Bitcoin price analysis
On May 17, the bulls attempted to move the price into a symmetrical triangle pattern, yet the bears fiercely defended the level and caused Bitcoin to fall on May 18.
The BTC/USDT pair is likely to experience a fierce battle between buyers and sellers in the region between the support level and $25,250.
The 20-day exponential moving average (EMA) sloping downwards at $27,590 and the relative strength index (RSI) in the negative range suggest that bears have a slight advantage. Nevertheless, the inability of the bears to keep the price below $26,500 indicates that the selling pressure lessens at lower levels.
If buyers break through the overhead resistance, the pair could begin an uptrend towards the 50-day Simple Moving Average at $28,412 and beyond that to the resistance line. If the triangle is surpassed, the bulls will take the advantage.
Ether price analysis
The bulls have been attempting to push Ether (ETH) above the 20-day EMA ($1,840) for several days, yet the bears have been preventing that from occurring.
The candlestick from May 16th to May 18th featuring a long tail indicates that bulls are still purchasing during the intraday dips, boosting the possibilities of surpassing the 20-day EMA. If this barrier is conquered, the ETH/USDT pair could ascend to the resistance line of the descending wedge pattern.
This level is essential to monitor because if it is breached and closed above, it will signal the beginning of a bullish trend. On the other hand, the bears need to push the price below the support line to initiate a decline to $1,600.
BNB price analysis
BNB (BNB) has been trading within a descending channel formation. On May 18, the price declined from the 20-day EMA ($315), pointing to a bearish outlook.
The first indication of strength would be a break and close above the 20-day EMA, which could open the way for a potential rally to the resistance line. It is likely that the bears will be determined in defending this level. If the price reverses sharply from the resistance line, it implies that the BNB/USDT pair may stay within the channel for a longer period.
The bears appear to have other ideas. They will attempt to push the price down below the support line of the channel and test the significant support at $280.
XRP price analysis
On May 17, XRP (XRP) was close to the 20-day EMA ($0.45) but on May 18, buyers managed to break through, suggesting that the bulls are making a comeback.
The 20-day EMA flattening out and the RSI being in the positive indicate that the selling pressure is decreasing. There is a strong resistance zone between the downtrend line and the 50-day SMA ($0.48), but it is likely to be surpassed. If this happens, the XRP/USDT pair could begin its journey upwards towards $0.54.
If the price decreases from its current level, it will indicate that bears are still selling on any upward movements. This could result in the pair being confined between the 50-day Simple Moving Average and $0.40 for an extended period of time.
Cardano price analysis
On May 17th and 18th, the bulls attempted to keep Cardano (ADA) above the 20-day EMA ($0.37), yet the bears refused to give up.
The bulls have not lost much of their position relative to the 20-day EMA, which is a good sign. This indicates that any small dip is being taken advantage of. The bulls will be attempting to raise the price beyond the 20-day EMA. If successful, the ADA/USDT pair could surge to the 50-day SMA ($0.39) and then possibly reach $0.44.
The bears are quickly running out of time to take control. If they want to gain the upper hand, they must quickly bring the price below the uptrend line. This could potentially lead to a drop to $0.30.
Dogecoin price analysis
The bulls attempted to push Dogecoin (DOGE) above the 20-day Exponential Moving Average ($0.07) on May 17, yet the bears were able to stay firm.
The bulls may make another attempt to breach the overhead resistance, and if they succeed, the DOGE/USDT pair could surge to the 50-day SMA ($0.08). This level is anticipated to be a hindrance, but if it is breached, it will indicate that the pair is still fluctuating within the wide range between $0.07 and $0.11.
Contrary to this presumption, if the price drops from its current level and falls below $0.07, it would demonstrate that the bears have gained the upper hand over the bulls. The pair could possibly drop to $0.06.
Polygon price analysis
On May 17, buyers propelled Polygon (MATIC) beyond the $0.82 to $0.88 resistance of the limited range. Despite the bears pushing the cost back into the range on May 18, a slight positive is that the bulls purchased the intraday drops, as indicated by the long tail on the day’s candlestick.
The bears are likely to put up strong resistance between the 20-day EMA ($0.91) and $0.94. If the bulls can break through this barrier, the MATIC/USDT pair has a good chance of gaining momentum and reaching the downtrend line.
If the price does not go above the 20-day EMA, it will suggest that the sentiment is still bearish and traders are selling on any small upturn. Sellers will then try to push the pair lower than $0.82 again.
An analyst has warned that a US debt deal could cause a $1 trillion liquidity crunch, posing a risk to the price of Bitcoin.
Solana price analysis
Solana (SOL) experienced a sharp decline from the downtrend line on May 18, demonstrating that the bears are strongly resisting the level.
The bears could attempt to extend their lead by pushing the price lower than the powerful support at $19.85. If they succeed, the SOL/USDT pair might initially drop to $18.70 and then to $16.
If the price rebounds from its current level and rises above the 50-day SMA ($21.81), it will demonstrate that the bulls are active at lower levels. This could potentially lead to an uptick towards $24 and then to $27.12.
Polkadot price analysis
Polkadot (DOT) has been having difficulty initiating a comeback, suggesting that demand diminishes at higher prices.
On numerous occasions, a tight consolidation near a robust support level has a tendency to break lower. If this happens and the price closes below the $5.15 level, it will complete a descending triangle pattern and could lead to a potential drop to $4.22.
If bears hope to avert a decline, they must rapidly push the cost above the 20-day EMA ($5.51). If they succeed, the DOT/USDT pair could ascend to the 50-day SMA ($5.97) and then advance to the downtrend line. Buyers must surmount this obstruction to suggest that the correction could be finished.
Litecoin price analysis
Litecoin (LTC) experienced a downturn from the overhead resistance of $96 on May 18, however, a positive indication is that the buyers did not permit the value to fall beneath the 50-day SMA ($89). This demonstrates that the buyers are attempting to transform this level into support.
The 20-day exponential moving average (EMA) has risen to $87, and the relative strength index (RSI) is close to 59, suggesting that buyers have the advantage. They will likely try to break through the resistance level of $96 and push the LTC/USDT pair to $106.
This optimistic outlook will be rendered obsolete in the near future if the price drops and falls below the moving averages. Such a decline would suggest that the pair may remain between $75 and $96 for a while longer.
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