Bitcoin (BTC) volatility has declined further this week and it is on track to form an inside bar pattern on the weekly chart. Although the bulls are struggling to clear the overhead hurdle in the $30,000-$31,000 area, a positive sign is that they have not given ground to the bears.
It’s not just cryptocurrencies, even the S&P 500 has been hovering inside a range for the past few days. This indicates that the markets are waiting for a trigger to initiate the next directional move.
While near-term price action is uncertain, analysts are becoming bullish for the long term. Crypto trader Titan highlighted a potential signal on the monthly Bollinger Bands chart, which projects a rally to $63,500 in about a year.
While most major cryptocurrencies have lost ground over the past week, there are still pockets of strength. Let’s analyze the charts of five cryptocurrencies that could appear in the short term.
bitcoin price analysis
Bitcoin fell sharply from the resistance line of the symmetrical triangle on May 6, indicating that the bears are unwilling to let the bulls through. A minor positive is that the bulls bought the dips from the triangle’s support line, as seen from the long tail on today’s candlestick.
The flat 20-day exponential moving average ($28,819) and Relative Strength Index (RSI) near the midpoint do not signal a clear advantage for either bulls or bears.
If the price falls below the triangle, it will suggest that the bears are trying to take control. The BTC/USDT pair could first fall to $26,942 and then to $25,250.
On the other hand, a breakout and close above the triangle will suggest that the bulls have absorbed the supply. This could trigger a rally to $32,400 where the bears should once again mount a strong defense.
The buyers pushed the price above the triangle, but the long wick on the candlestick shows that the breakout turned out to be a short-term bullish trap. The price of BTC fell sharply and plunged all the way to the triangle support line.
The bounce from this level hit the moving averages, which is a key level to watch in the short term. If the price of Bitcoin declines from the current level, it will increase the chances of a break below the support line.
On the contrary, if the buyers drive the price above the moving averages, the pair may rise to the resistance line. The bulls will need to drive and hold the price above this level to initiate a bullish move.
Ether Price Analysis
Ether (ETH) faced a strong rejection above the psychological resistance at $2,000 on May 7. This indicates that the bears have not given up and continue to protect broad resistance levels.
The 20-day EMA ($1,903) has flattened out and the RSI is near the midpoint, indicating that the ETH/USDT pair may remain range-bound in the near term. The limits of the range could be between $2,000 and $1,785.
Consolidation just below the local high is a positive sign. This shows that the bulls are in no rush to take profits, which increases the possibility of a break above $2,200.
On the contrary, if the price dips below $1,785, it will suggest that the bears have taken control. It could start a drop to $1,619.
The 4-hour chart shows that the bears were unable to build on the break below the 50 simple moving average. This shows that the selling pressure is easing at lower levels. The bulls attempt to stage a rally by holding the price above the 20-EMA. If they succeed, the pair will once again attempt to retest the crucial resistance at $2,000.
On the contrary, if the price of ETH declines from the current level and breaks below the 50-SMA, it will suggest that the bears are in control. This could sink the pair towards the support line.
Monero Price Analysis
Monero (XMR) is trying to stay above the moving averages, indicating that the bulls are trying to come back.
The 20-day flat EMA ($156) and the RSI just above the midpoint indicate a balance between supply and demand. If the buyers push the price of XMR above the neckline of the inverse head and shoulders pattern, the advantage will tilt in their favor.
The XMR/USDT pair can then start a new bullish movement. There is a minor resistance at $181 but if it is broken, the pair can reach $187.
Instead, if the price is falling from the current level or the neckline, it will suggest that the bears remain active at higher levels. The sellers will then try to pull the price below the $149 support, opening the door for a decline to $130.
The 4-hour chart shows that the price bounced off the 50-SMA but the bulls were unable to break through the resistance line. This shows that bears are selling on rallies. If the price retraces from the 20-EMA, it will suggest that sentiment is turning positive and traders are buying lower.
The bulls will then make another attempt to clear the aerial obstacle. If they succeed, the pair could hit $162 first and then $164.
Alternatively, if the price declines and breaks below the 50-SMA, it will suggest that the bears are in control. This will increase the likelihood of a retest from the helpline.
Related: The Ethereum Foundation Just Sold $30 Million in Ether – But Will the Price of ETH Go Down This Time?
OKB price analysis
OKB (OKB) is trading inside a large symmetrical triangle pattern. Generally, in this setup, traders buy near the support line and sell near the resistance.
The bears are trying to keep the OKB price below the 50-day SMA ($45.57) while the bulls are trying to recover the level. If the price rises from the current level or bounces off the support line, this will suggest demand at lower levels.
If the buyers push the price above the 20-day EMA ($46.87), it will suggest that the OKB/USDT pair may extend its stay inside the triangle for some time.
Contrary to this assumption, if the bears cause the price to fall below the triangle, it will suggest that the pattern has behaved like a reversal pattern. This could trigger a new downtrend that could pull the pair to $37.
The 4-hour chart shows that the bulls are trying to defend the horizontal support near $44.35 but they were unable to propel the price above the moving averages. This suggests that every minor relief rally is being sold. If the price declines from the current level and drops below $44.35, the pair could fall to $41.70.
Conversely, if the price breaks above the moving averages, it will signal an accumulation at lower levels. The pair could rise to $49.50 first and then attempt a rally to $53.
Rocket Pool Price Analysis
Rocket Pool (RPL) looks strong as it is trading above the moving averages. This shows that the bulls are buying on the dips.
The bulls will need to propel the price above the overhead resistance at $53.45 to signal that the corrective phase may be over. The RPL/USDT pair could then attempt a rally to $58.
Another possibility is that the price of RPL is rising from the 20-day EMA ($48.36) but falling from $53.45. This will indicate possible range-bound action between the 50-day SMA ($46.13) and $53.45 for some time.
A breakout and close below the 50-day SMA will be the first indication that the bears are in control. This will open the doors for a potential decline to $37.
The 4-hour chart shows that the bears are trying to hold the price below the 20-EMA while the bulls are trying to push the price above it. If the buyers are successful, the pair may reach the downtrend line. This is the key level to watch in the short term. If this resistance is overcome, the pair could rally back to $53.45.
On the contrary, if the price declines from the current level and breaks below the 50-SMA, the price is likely to drop to the support line. The bulls will likely defend this level fiercely.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
