Bitcoin (BTC) slumped to a new year low, with most major altcoins continuing their declines as they followed the weakness in the stock markets. Data from blockchain analytics firm Glassnode shows Bitcoin inflows to centralized exchanges soared to 1.7 million BTC, the highest level since February. This suggests that whales may abandon their holdings as they anticipate a long downtrend. Analysts expect crypto markets to enter a phase of capitulation that usually marks the bottom. Could BTC and altcoins enter a phase of capitulation or is it time for the crypto markets to surprise many analysts and investors by staging a strong recovery? As Kriptokoin.com, we convey analyst views and price analyzes for BTC, AVAX, DOGE and these 7 altcoins.
What awaits BTC, AVAX, DOGE and these 7 altcoins this week?
Bitcoin (BTC) and Ethereum (ETH)
Bitcoin fell below the ascending channel on May 5 and continues to decline. This shows that the bears are not willing to give up their advantage. The price settled below the critical support at $32,917, but the bears may face a strong challenge from the bulls at the lower levels. If the price bounces back from the current level, the relief rally could reach the 20-day exponential moving average (EMA) ($37,670). This is an important level to watch out for because if the price drops from the 20-day EMA, it will indicate that sentiment will remain negative and traders are selling on rallies. The bears will then make another attempt to push the BTC/USDT pair to the critical support at $28,805. This level is likely to attract the buying of the bulls again. On the upside, a break and close above the 20-day EMA will be the first indication that selling pressure may drop. This could open the way for a possible rally to the 50-day simple moving average (SMA) ($41,279).
Ethereum (ETH) broke below the bullish line on May 7. This move invalidated the emerging ascending triangle pattern. A breakout of a bullish pattern is usually a bearish sign in anticipation of a breakout from the pattern being triggered. Strong selling pushed the price below the immediate support at $2,445. This opens the door for a possible drop to the critical support zone between $2,300 and $2,159. The bulls are likely to defend this area with all their might as a break below it could drop the ETH/USDT pair to $1,700. If the price bounces back from the support zone, the bulls will attempt to push the pair above the 20-day EMA ($2,790). If they are successful, it suggests the bears may be losing control. The pair could then rise to the 50-day SMA ($3,043).
BNB and Ripple (XRP)
BNB has witnessed sustained sales over the past few days. The bears pulled the price below the strong support at $350 and it is now challenging the critical level of $320. A break and close below $320 will result in a massive negative as this level has not been broken since August 2021. There is a minor support at $300, but if this level fails to stop the decline, the BNB/USDT pair could drop to $250. Alternatively, if the price bounces back from $320, the bulls will attempt to push the pair above $350 and challenge the 20-day EMA ($383). Buyers will need to break through this hurdle to signal the end of the drop. The pair could then rise to the 50-day SMA ($409).
Ripple (XRP) fell from the 20-day EMA ($0.63) on May 5 to below $0.62. Buyers tried to push the price above $0.62 on May 6, but the bears held their ground. The XRP/USDT pair continued its decline and settled below the support at $0.55. This paves the way to retest the psychological support at $0.50. Buyers are expected to defend this level strongly as a break and close below it could initiate a downtrend that could bring the pair down to $0.42. Conversely, if the price rises above the $0.50 support, the bulls will again try and maintain the pair above the 20-day EMA. If they succeed, it will suggest that selling pressure may drop.
Solana (SOL) and Cardano (ADA)
The failure of the bulls to push Solana (SOL) above the 20-day EMA on May 5 may have attracted strong selling from the bears. The price continued its downward move and settled below the strong $75 support. If the price stays below $75, it will suggest the start of the next leg of the downtrend. The SOL/USDT pair could drop as low as $66 and $58 first. If the price bounces back from this zone, buyers will try to push and sustain the pair above $75. If they achieve this, it will suggest that the downtrend may be coming to an end. Conversely, if the recovery stalls at $75, it will suggest that the bears have turned the level into resistance. If this happens, the bears will try to continue the decline.
Cardano (ADA) broke above the 20-day EMA ($0.81) on May 4, but the bulls failed to sustain higher. The price fell on May 5 and broke below the strong support at $0.74 on May 8. This indicates the resumption of the downtrend. The ADA/USDT pair could now drop to $0.64 which could act as a support. If the price bounces back from this level, the bulls will try to push the pair above the 20-day EMA. If they are successful, it will suggest that a break below $0.74 could be a bear trap. Conversely, if the relief rally stops at $0.74 or the 20-day EMA, it will indicate that the bears are active at higher levels. Sellers will then try to push the pair towards the psychological support of $0.50.
Terra (LUNA) and Dogecoin (DOGE)
LUNA turned down from the downtrend line on May 5 and broke below the strong support of $75 on May 7. This completed the bearish head-to-shoulder pattern, suggesting the start of a new downtrend. The long tail on the May 7 and 8 candlestick indicates that the bulls are buying at lower levels, but the lack of a rebound indicates that the bears are not giving up on their advantage. The target of his formation is $50. This level is likely to attract strong buys by the bulls. If the price rebounds from $50, the bulls will try to push the Luna/USDT pair towards the $75 breakout level. If the price declines from this level, the pair could form a range between $50 and $75.
Dogecoin (DOGE) bounced back from the 20-day EMA ($0.13) on May 7, noting that bears continue to be sold in rallies. Selling gained momentum on May 9 and the bears pushed the price below the strong $0.12 support. The downward sloping 20-day EMA and the relative strength index (RSI) in the negative zone suggest that sellers are gaining an edge. If the bears hold DOGE price below $0.12, the DOGE/USDT pair could slide towards the psychological support at $0.10. If the price rebounds from $0.10, buyers will try to push the pair above $0.12 and challenge the 20-day EMA. A break and close above the 20-day EMA could be the first indication that DOGE price could be stuck between $0.10 and $0.17 for a while. Contrary to this assumption, if the bears sink the DOGE price below $0.10, the sell-off could intensify and the drop could extend to $0.06.
Avalanche AVAX and Polkadot (DOT)
Avalanche (AVAX) bounced back from the 20-day EMA ($63) on May 5 and dropped below the critical support at $51. If the bears hold the price below $51, it will indicate the resumption of the downtrend. There is a minor support at $47 and later at $43. If the price rises from both supports, buyers will try to push the AVAX/USDT pair above $51. If successful, the pair could return to the 20-day EMA, which is an important level to consider. If the bulls push the price above the 20-day EMA, it will suggest that the bears may lose their grip. The pair could then attempt a rally to the 50-day SMA ($77). Alternatively, if the recovery slows at the 20-day EMA, it will indicate that sentiment remains negative and traders are selling on rallies. The bears will then try to resume the downtrend again.
Polkadot (DOT) tight range movement of $14 to $16 was resolved to the downside on May 7, showing the bears overrun the buyers. The DOT/USDT pair can now drop to the critical support at $10 where the bulls are expected to form a strong defense. Although the bearish 20-day EMA ($15.54) signals an advantage for the bears, the RSI in the oversold zone suggests that a rebound may be imminent. If the price recovers from $10, the bulls will attempt to push the pair above the 20-day EMA. If they do, it will be the first sign that selling pressure may ease. Alternatively, if the price drops from the 20-day EMA, it will suggest that the bears continue to be sold on rallies. The bears will then try to push the pair below the strong $10 support. If they do, the pair could drop to $7.16.
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