The S&P 500 Index (SPX) ended the week with a nominal 0.29% drop, while Bitcoin (BTC) is targeting a significant drop of over 5% to end the week. Several altcoins fell as Bitcoin fell, indicating weakening sentiment.
The silver lining is Bitcoin’s strong rebound on May 12th. Multiple analysts expect Bitcoin to start a recovery, but the material indicators of monitoring resources looked cautious.
The lack of strong bidding from whales in the lower waters in a recent analysis could be a worrying sign, the researchers said. They believe their bullish view will be invalidated if Bitcoin breaks below its 200-week moving average.
In the coming days, attention is expected to be focused on progress in debt ceiling negotiations between Congressional and White House leaders. Uncertainty and risk of a possible US debt default could dampen stock market gains, but predicting how Bitcoin and altcoins will react to all the turmoil Have difficulty.
Bitcoin has started a correction phase and most altcoins have fallen below their respective support levels. Only a handful of cryptocurrencies look positive on the charts. Let’s analyze the charts of the top 5 cryptocurrencies that are likely to rise in the short term.
Bitcoin price analysis
Bitcoin’s May 12 candlestick long tail shows that the bulls are aggressively buying dips to the neckline of the inverse head and shoulders (H&S) pattern.
Buyers will try to push the price back into the triangle, but they may face stiff resistance from the bears. A downtrend in the 20-day exponential moving average ($27,959) and a relative strength index (RSI) below 41 point to a slight advantage for the bears.
If the price turns down from the 20-day EMA, the bears will again try to drop the BTC/USDT pair below $25,250. If that happens, the selling will intensify and the price could crash to $20,000.
On the upside, the bulls will need to cross the resistance line hurdle to regain control. The pair could then retest overhead resistance at $31,000.
After facing stiff resistance at the 20-EMA, the bulls have overcome obstacles. This shows that the bulls are trying to take the lead. The pair can first move up to the 50 simple moving average and then to $28,400.
Conversely, if the price falls sharply from the current levels, it suggests that the bears are trying to reverse the triangle support line to resistance. After that, the pair can plunge to the critical support of $25,250.
Cardano price analysis
Cardano (ADA)’s strong rebound from the May 11 uptrend line suggests that the lower levels continue to attract strong buying.
The bulls will try to resume the recovery by pushing the price to the 20-day EMA ($0.38). This level may act as a minor barrier, but if the bulls overcome it, the ADA/USDT pair could surge towards the neckline of the reverse H&S pattern. This level is likely to see a fierce battle between the bulls and the bears.
Another possibility is that the price turns down from the 20-day EMA and falls to the uptrend line. Retesting the support level repeatedly at short intervals tends to weaken the support level. This could open up a potential drop to $0.30.
The bulls have pushed the price above the moving averages, indicating that the bears may be losing their grip. The 20-EMA has started to gradually move up and the RSI is in the positive zone, indicating that the bulls are on a recovery trend.
If buyers break out of the overhead resistance at $0.37, the pair can pick up momentum and move to $0.40 and then to $0.42. Conversely, if the price turns down from $0.37, the pair may slide to the uptrend line.
Cosmos price analysis
Cosmos (ATOM) has rebounded sharply from the support of $10.20 on May 10, indicating that the bulls are buying a dip to this level.
While the bears are trying to stop a relief rise at the 50-day SMA ($11.28), the bulls are not conceding much. This increases the likelihood of a move above the 50-day SMA. If so, the ATOM/USDT pair can rally to the downtrend line.
This is an important level for sellers to watch out for as it will invalidate the bearish descending triangle pattern once it is crossed.
The key support to watch on the downside is $10.20. If it breaks, the descending triangle will be completed and the pair could plunge to $8.50.
4-hour chart shows relief rally facing selling at higher levels, but price action completes on break, forming reverse H&S pattern that could end above $11.30 doing. After that, the pair can start moving up to $12 and then to $12.50.
Alternatively, if the price falls below the 50-SMA, it would suggest that the bears are in control. After that, the currency pair can fall towards the critical support of $10.20. A rebound from this level could keep the pair inside the $11.30 and $10.20 boundary for some time.
Related: 4 Worrying Charts for Bitcoin Bulls as $27,000 Becomes a Formidable Hurdle
Lido DAO Price Analysis
Lido Dao (LDO) has bounced off the $1.60 support and reached resistance just above the 20-day EMA ($1.95).
The bears are trying to defend the 20-day EMA, but the bulls are not giving up. This suggests that buyers expect the recovery to continue. The LDO/USDT pair can rally to the downtrend line if the bulls sustain the price above the 20-day EMA. This level is likely to invite strong selling by the bears.
A change in sentiment from selling on the upside to buying on the downside will be signaled if buyers break out of the 20-day EMA and turn down for the next turn. After that, the pair could start a sustained recovery above the downtrend line.
On the downside, the bears will need to sustain the price below $1.60 to signal a resumption of the downtrend.
The 4-hour chart shows that the bulls are trying to break out of the overhead resistance at $1.98. If successful, the pair will complete a bullish double bottom pattern. The target target for this reversal setup is $2.39 for him. If this level is also crossed, the pair could reach $2.60.
Conversely, if the price turns down from current levels or $1.98 and breaks below the moving averages, it suggests bears are active at higher levels. Therefore, the pair can stay between $1.57 and $1.98 for some time.
Arbitrage price analysis
The Arbitrum (ARB) is finding support near the psychologically important levels of $1, indicating that the bulls are actively buying dips.
On the upside, the bears are trying to delay a recovery at $1.20, but the slight positive in favor of the bulls is maintaining the buying pressure. This increases the chances of a breakout of $1.20. If so, the ARB/USDT pair can rally to $1.40 and then to $1.50.
This positive view will be invalidated in the short term if the price falls sharply from $1.20. This suggests that the price may hold between $1 and $1.20 for a few days.
The 20-EMA on the 4-hour chart has started to rise and the RSI is in positive territory, indicating that selling pressure is easing. Buyers will try to consolidate their positions by pushing the pair above $1.20. The pair will then complete a double bottom pattern with a target target of $1.35.
The first sign of bearish strength will be a breakout and close below the 20-EMA. This can send the pair down to $1.05. A slide below $1 signals a resumption of the downtrend.
This article does not contain investment advice or recommendations. Any investment or trading move involves risk and readers should conduct their own research before making any decision.
