Cryptocurrency Market Indicates Bearish Turn: Top Ten Cryptocurrencies Reviewed
Summary:
On May 1, Bitcoin (BTC) saw a dip below the $60,000 support level, indicating a bearish turn in the cryptocurrency market. The lukewarm response to the debut of Bitcoin and Ether (ETH) exchange-traded funds (ETF) in Hong Kong, paired with consistent outflows from U.S. based Bitcoin ETFs, contributed to negative investor sentiment. Charts from the top ten cryptocurrencies, including Ether, BNB, Solana, XRP, Dogecoin, Toncoin, Cardano, Avalanche, and Shiba Inu, show similar bearish trends. However, long-term market analysts remain optimistic, advising investors to wait for price stability before making major investments.
On May 1, Bitcoin (BTC) dipped below the $60,000 support level, indicating a weakening in the rising trend. This drop has clouded Bitcoin's immediate prospects, but analysts maintain a positive long-term outlook. When prices veer towards a bearish trend, traders tend to move on each piece of unfavorable news. The lukewarm reaction to Bitcoin and Ether (ETH) exchange-traded funds (ETFs) restating in Hong Kong on April 30 dented investor sentiment. The persistent outflows from U.S.-based Bitcoin ETFs for the fifth day in a row have also done little to calm the market.
Sharp corrections are common in every bullish phase, flushing out the weak investors. These lower levels provide long-term investors with new portfolio-building opportunities. Nevertheless, it is advisable to wait until prices confirm the bottom before making substantial investments.
Now, will a sharp recovery in Bitcoin and altcoins catch aggressive bears off guard? We look at the charts of the ten top cryptocurrencies to find out.
The consolidation in Bitcoin's price pointed to a downside on May 1, suggesting that bears have the upper hand over bulls. Buyers will aim to pitch the price back over $59,600. However, if the price falls from $59,600, it would suggest that bears have turned the sequence into resistance, which could potentially lead to a drop to the 61.8% Fibonacci retracement level of $54,298. This negative view can be refuted if prices rise and break above the 50-day simple moving average ($66,596).
Ether slipped below the 20-day exponential moving average ($3,170) and the $3,056 support on April 30, implying bear control. Continued sales on May 1 brought the price under the firm $2,852 support. If the ETH/USDT pair can hold price levels below $2,852, it could drop to $2,700 and then to $2,400. If the bulls aim to prevent the fall, they must swiftly nudge the price back above the moving averages.
The tail on April 30's BNB (BNB) candlestick illustrates that the bulls bought at lower price points. However, these activities did not keep the momentum, allowing the bears to continue selling and forcing the price below moving averages on May 1. The BNB/USDT pair could descend to the crucial support level at $495. If this foundation shatters, the pair might plummet to $460 and later to $400.
The failure of the bulls to initiate a rebound off $126 in Solana (SOL) demonstrates bears' dominance. If the $116 support level ruptures, selling action could speed up, bringing the SOL/USDT pair down to $100.
XRP's effort to start a reprieve from the psychological $0.50 level faltered, and constant sales pressure from bears dragged the price below $0.50. This drop has potentially opened up the ground for a retest of robust support at $0.46.
Pressure on Dogecoin (DOGE) increased after prices slipped below the symmetrical triangle pattern. Staying below $0.12 could spike selling activities, causing the DOGE/USDT pair to tumble to $0.10 and then to $0.08.
Toncoin (TON) slid below the 50-day SMA ($5.32) on April 30, suggesting that the bear pressure persists. A break below $4.25 may imply the end of the uptrend, escalating the likelihood of a plunge to $3.32.
Cardano (ADA) attempts recovery from $0.42, but the weak resurgence hints at dwindling demand from bulls. If the price drops below $0.42, the ADA/USDT pair might retest the $0.40 support mark.
Buyers aimed to push Avalanche (AVAX) back over the uptrend line on April 29, but the bears showed resistance. If the AVAX/USDT pair can break the $31.92 support, a drop to $29.24 could quickly follow.
Lastly, the bulls' efforts to hoist Shiba Inu (SHIB) more than the 20-day EMA ($0.000024) on April 30 were blocked by bears. The SHIB/USDT pair may slide to $0.000020, likely to act as staunch support.
Published At
5/1/2024 7:51:08 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.