The collapse of the Terra ecosystem continues to negatively affect Bitcoin (BTC) and altcoins. Although Terra Labs CEO Do Kwon has announced a relief plan, the community doesn’t seem very hopeful about it. Another obstacle to the rapid recovery of markets is the 8.3 percent increase in the US Consumer Price Index from a year ago. The cryptocurrency market presents one of the best times to accumulate strong cryptocurrencies rather than panic selling as massive losses continue to be experienced. Investors should not rush to invest during downturns, but wait for the price to stabilize and capitulation to end before buying incrementally. What are the key levels of Bitcoin (BTC) and strong altcoins that interest buyers, and key upside resistance levels that could provide a potential trend change? As Kriptokoin.com, we provide analyst views, price analyzes and critical levels for Bitcoin and 9 major altcoins.
What awaits Bitcoin and these 9 major altcoins this week?
Bitcoin (BTC) and Ethereum (ETH)
Bitcoin fell sharply on May 9 and attempted to recover from the psychological level of $30,000 on May 10. The long wick on the daily candle indicates that the bears continue to sell on small rallies. The bears tried to develop their advantage on May 11, but the bulls are defending the critical level of $28,805 with all their might. This is an important level to watch out for because if it is broken, selling could intensify. The BTC/USDT pair could then drop to $25,000 and then $20,000. While downward sloping moving averages give sellers an advantage, the relative strength index (RSI) in the oversold region indicates that a relief rally or consolidation is possible. If the price rebounds from the current level, it could reach the 20-day exponential moving average (EMA) ($36,214). This is an important level to consider because if the price drops from it, the bears will attempt to push the pair back below $28,805. Alternatively, if the bulls push the price above the 20-day EMA, the pair could rise to the 50-day simple moving average (SMA) ($40,792).
Etherereum (ETH) reached a strong support level at $2,159. The bulls are likely to put up a strong defense at this level because if the support is broken, selling could pick up momentum. If the bounce continues, the bulls will try to push the price towards the 20-day EMA ($2,698). In a downtrend, bears usually try to stop their help rally at the 20-day EMA. Therefore, this becomes an important level to watch out for. If the price drops from the 20-day EMA, it will indicate that sentiment remains negative and traders continue to sell in rallies. The bears will then again try to push the ETH/USDT pair below $2,159. If they are successful, the pair could drop to $2,000 and later to $1,700.
BNB and Ripple (XRP)
BNB witnessed a sharp decline on May 9 and broke below the strong support of $320. The bulls tried to push the price above the May 10 breakout level, but the bears did not give up. The bears continued their sell-off on May 11 and pulled the BNB/USDT pair below the $289 immediate support. If the sellers hold the price below $289, the pair gains momentum and drops to $250 and later to $225. Buyers are expected to make a strong defense in this support zone. Alternatively, if the price rebounds from the current level, the bulls will again attempt to push and sustain the pair above $320. If they are successful, it will indicate that the markets are rejecting the lower levels. The pair could rally to $350 later.
Ripple (XRP) has witnessed a tough battle between the bulls and bears near the $0.50 level. While the bears pushed the price below $0.50 on May 9, the bulls took the level back on May 10. The bears finally defeated the bulls on May 11 and resumed the downtrend. The XRP/USDT pair has dropped to the strong support at $0.40 where the bulls are trying to stop the decline. If the price rises from the current level, the bulls will try to push the pair above the overhead resistance zone of $0.50 to $0.55. Conversely, if the price dips below $0.40, the pair could witness more selling and drop to $0.34.
Cardano (ADA) and Solana (SOL)
Cardano (ADA) broke below the strong support of $0.74 on May 9, indicating the resumption of the downtrend. Buyers tried to recover on May 10 but failed to hold higher. Selling resumed on May 11 and the ADA/USDT pair broke below the critical support at $0.58. If the price stays below this level, the pair could drop to the psychological level of $0.50 and later to $0.40. Conversely, if the price rises from the current level, the bulls will try to push the pair back above the breakout level at $0.74 and the 20-day EMA ($0.77). If successful, the recovery could gain momentum and the pair could rally to the critical resistance at $1
Solana (SOL) broke below the strong $75 support on May 9 and closed. This marked the start of the next leg of the downtrend. The bulls tried to trap the aggressive bears by pushing the price above the $75 breakout level on May 10, but the bears held their ground. Selling resumed on May 11 and the bears pushed the price below the psychological support of $50. If the price stays below $50, the SOL/USDT pair could extend its decline to $44 and later to $40. Conversely, if the price bounces off the current level, the bulls will make another attempt to push the pair above $75. If they manage to do so, the pair could rise to the 20-day EMA ($83). This is an important level to watch out for, as a break and close above it could indicate that the bulls are back in the game. The pair could then rise to the 50-day SMA ($101).
Dogecoin (DOGE) and Polkadot (DOT)
Dogecoin (DOGE) broke below the $0.12 support on May 9 and dropped to the psychological $0.10 level. Buyers attempted to start a recovery on May 10 but remained at the $0.12 breakout level. The bears continued their sell-off and pushed the price below the critical support of $0.10 on May 11. If the price stays below $0.10, the DOGE/USDT pair could extend its decline to the strong support zone of $0.06 to $0.04. The bulls are likely to defend this support zone strongly. If the bulls propel the price above $0.10 quickly, it will suggest a strong accumulation lower. Buyers will then try to push the pair above the 20-day EMA ($0.12).
Polkadot (DOT) dived to psychological support at $10 on May 9 and attempted to recover on May 10, but the long wick on the day’s candlestick is selling higher. Selling resumed on May 11 and the bears dragged the price below the strong $10 support. If the bears continue to break down, it will suggest the start of the next leg of the downtrend. The DOT/USDT pair can then extend its decline to $7. Conversely, if the price rises from the current level and rises above $10, it will signal strong buying at the lower levels. If the bulls hold the price above $10, the probability of a rally to $14 increases.
Avalanche (AVAX) and Shiba Inu (SHIB)
Avalanche (AVAX) broke below the critical support of $51 on May 9, signaling the resumption of the downtrend. Buyers tried to push the price above the May 10 breakout, but the long wick on the candlestick indicates that the bears have turned the $51 level into resistance. The AVAX/USDT pair continued its decline on May 11 and broke below the critical support at $32, but the long tail on the candlestick shows strong buying at the lower levels. The bulls are expected to defend the $32 level aggressively because if the support is broken, selling could intensify and the pair could drop to $18. If the price rises from the current level, buyers will again try to push the pair to the breakout level of $51. A break and close above this level could be the first sign that the downtrend may be weakening.
Shiba Inu (SHIB) has been falling slowly for the past few days. The momentum rebounded on May 9 and the price dropped below the critical support at $0.000017. This signaled the resumption of the downtrend. Buyers bought the dip near $0.000013 and pushed the price above the $0.0017 breakout on May 10. However, the long wick on the day’s candlestick indicates that the bears are selling higher and are attempting to turn $0.000017 into the resistance. If the price stays below $0.000013, selling could intensify and the SHIB/USDT pair could drop to the psychological level of $0.000010. Buyers will have to push and sustain the price above the 20-day EMA ($0.000020) to indicate that selling pressure may weaken.
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