BTC, ALGO, XMR, XTZ, THETA

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BTC, ALGO, XMR, XTZ, THETA
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The S&P 500 and Nasdaq fell for five straight weeks, suggesting traders continued to reduce exposure to risky assets. Bitcoin (BTC)’s close correlation with the U.S. stock market has kept its price under pressure.

Bitcoin extended losses over the weekend and is now on track for a sixth straight weekly loss, the first of its kind since 2014. Bitcoin’s weakness has dragged down the entire crypto market, whose market cap has fallen below $1.6 trillion.

Daily view of crypto market data. Source: Coin360

When market sentiment is bearish, traders sell on every negative news. The decoupling of Terra’s USD stablecoin TerraUSD (UST) also appears to have added to selling pressure across the crypto market.

Is it time for Bitcoin to recover after six straight weeks of losses? Let’s examine the charts of the top 5 cryptocurrencies that have shown signs of stabilization recently.

Tokenmetrics

Bitcoin/USDT

Bitcoin fell from the 20-day exponential moving average (EMA) at $38,268 on May 5, breaking below the support line of the ascending channel. The move also invalidated a positive divergence on the Relative Strength Index (RSI).

BTC/USDT daily chart. Source: TradingView

The moving averages are starting to turn down and the RSI is approaching the oversold zone, indicating that the bears are in control.

The BTC/Tether (USDT) pair found minor support at $34,322, but if the bulls fail to defend this level, the decline could extend to $32,917. This is a key level to watch closely, as if it breaks, the pair could experience panic selling and the next stop could be $28,805.

If the price rises from $34,322, the recovery could face a sell-off near the 20-day EMA. If the price pulls back from this level, it will indicate that sentiment remains negative and traders are selling on rallies. This could enhance prospects for a resumption of the downtrend.

This negative view could be invalidated in the short-term if the bulls push the price higher and sustain above the 20-day EMA. If that happens, the pair could rise to the 50-day simple moving average (SMA) at $41,466.

BTC/USDT 4-hour chart. Source: TradingView

The downward sloping moving averages suggest that bears are in control, but the oversold levels on the RSI suggest a possible relief rally or consolidation in the near term. If the recovery fails to rise above the 20 EMA, the bears are likely to maintain selling pressure and the pair could fall to $32,917.

Conversely, a breakout and close above the 20 EMA could signal the start of a strong rally. The pair could then rise to the 50-SMA. Buyers will have to push and sustain prices above $40,000 to signal that the downtrend may be over.

Algorithm/USDT

Algorand (ALGO) has been trading within a descending channel pattern for the past few days. Prices bounced off the support line of the channel on May 1, and the bulls have cleared the 20-day EMA at $0.69, suggesting that selling pressure may be easing.

ALGO/USDT daily chart. Source: TradingView

If buyers sustain the price above the 50-day SMA at $0.76, the ALGO/USDT pair could rally towards the resistance line of the channel. This is an important level for the bulls to overcome. If they manage to do this, it will signal the start of a new uptrend. The pair may first rise to $1.10 and then to $1.25.

On the other hand, if the price turns down from the resistance line, it will indicate that the pair may extend its stay within the channel for a few more days. The bears will have to sink and hold the price below the channel to signal a resumption of the downtrend.

ALGO/USDT 4-hour chart. Source: TradingView

The 20-EMA has emerged and the RSI is in the positive territory, indicating a positive for buyers. There is a minor resistance at $0.80 and if the bulls clear this hurdle, the pair could rise to the resistance line of the channel.

On the downside, the 20-EMA is a key level to watch. If the price rebounds from this level, it will indicate that the market sentiment has turned in favor of buyers. This could increase the odds of a breakout above $0.80. Alternatively, if the price breaks below the 20-EMA, the next stop loss might be the 50-SMA.

XMR/USDT

Monero (XMR) has been finding support near the psychological support level of $200 for the past few days. Buyers are not allowing the price to break below the downtrend line, which shows that they are trying to flip the level into support.

XMR/USDT daily chart. Source: TradingView

The bulls will have to push and sustain the price above the 20-day EMA at $223 to signal that the correction phase may be over. There is a minor resistance at $240, but if the bulls clear this hurdle, the XMR/USDT pair could rally towards $289.

Conversely, if the price turns back from the current levels or the 20-day EMA, it will show that the bears have not given up. This could increase the odds of a break below $200. If this happens, the sell-off could intensify and the pair could drop to $150.

XMR/USDT 4-hour chart. Source: TradingView

The pair formed a symmetrical triangle pattern, indicating indecision between the bulls and the bears. If the bulls push the price above the resistance line of the triangle, it will indicate that the downtrend may be over. The pair could then bounce back towards the 200 SMA, followed by a pattern target of $252.

Conversely, if the uncertainty of the triangle turns to the downside, it will indicate that the triangle has acted as a continuation pattern. This could signal a resumption of the downtrend. The pattern target on the downside is $164.

Related: LUNA Drops 20% in One Day as Whales Dump Terra’s UST Stablecoin – Is there a sell-off risk ahead?

XTZ/USDT

Tezos (XTZ) broke below the long-term uptrend line on April 29, and the bears managed to hold the breakdown level on May 5. The bears attempted to start a downtrend but struggled to sustain lower levels.

XTZ/USDT daily chart. Source: TradingView

If the bulls push the price higher and sustain above the uptrend line, it will indicate that the market has rejected the downtrend. XTZ/USDT could then try to bounce back to the area above the 50-day SMA between $3.18 and $3.40.

This positive view could be invalidated if prices turn down again from the uptrend line. If this happens, it will indicate that the bears have turned the uptrend line into resistance. A break and close below $2.39 could start a new downtrend that could reach $2.00.

XTZ/USDT 4-hour chart. Source: TradingView

The 20-EMA is flattening out and the RSI is forming a bullish divergence on the 4-hours chart, suggesting that negative momentum is fading. The pair can now attempt a rally to $2.90, with the bears likely to provide strong resistance. A breakout and close above this level could open the doors for a possible rise to $3.00 and then $3.30.

Alternatively, if the price turns back from current levels or above resistance, it will indicate that the bears are selling on rallies. This could keep the pair between $2.90 and $2.39. If the bears sink the price below $2.39, the downtrend is likely to accelerate.

THETA/USDT

Theta Network (THETA) has traded between $2.27 and $4.40 over the past few weeks. The range turned to the downside on May 6, indicating that bears have the upper hand.

THETA/USDT daily chart. Source: TradingView

Although the 20-day EMA at $2.57 is sloping down, the RSI is attempting to form a bullish divergence, suggesting that selling momentum is waning. If the bulls push the price back above the $2.27 breakdown level, it could trap several aggressive bears who may initiate short positions on a break below the range.

The THETA/USDT pair may then rise to the 20-day EMA. This is an important level to watch, as if the bulls overcome this hurdle, the pair could rally towards the 50-day SMA at $3.10.

This positive view could be invalidated if the price turns down from current levels or a breakdown of $2.27 and falls below $2.00.

THETA/USDT 4-hour chart. Source: TradingView

Bulls are buying dips close to the psychological level of $2.00. If buyers push the price above the downtrend line, it will indicate that the bears may be losing control. The pair could then rally to overhead resistance at $2.64. This level could once again act as a strong resistance, but if buyers clear this hurdle, bullish momentum could pick up.

Contrary to this assumption, if the price turns down from the 20 EMA or downtrend line, it will indicate that the bears continue to sell on the rally. This could increase the odds of a break below $2.00 and a resumption of the downtrend.

The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk and you should do your own research when making a decision.



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