Before this week billionaire investor Carl Icahn’s told Bloomberg that he is considering entering crypto in a huge way but this barely made any difference to crypto prices. This is just another hint that the underlying sentiment is bearish and that crypto markets are not reacting positively to positive news.
But this doesn’t follow that the bulls have ceased buying. While speaking to Cointelegraph, S2F Capital managing partner and chief investment officer Micah Spruill said that on-chain data reveals Bitcoin whales, possessing between 1,000 and 10,000 (BTC), and retail traders holding between 0.1 and one BTC, are accumulating at lower levels.
Accumulation by big players near the lows is a positive sign as it indicates that they are searching for the long term.
While speaking in Consensus 2021, ARK Investments CEO Cathie Wood said that emerging market central banks might buy BTC to secure their balance sheets“since they understand that their monies are going down and that they will be under attack since reservations go down.“
Dealers should keep a close eye on the fundamentals of BTC as well as the crypto industry because that will drive long-term price actions. In the brief term, traders‘ sentiment plays a major role in deciding the tendency.
Let us examine the graphs of the top-10 cryptocurrencies to determine whether crypto costs have bottomed out or not.
BTC’s pullback could not even attain the 38.2% Fibonacci retracement level at $41,269, meaning that traders are shutting their rankings minor rallies. The downsloping 20-day exponential moving average ($42,780) and also the relative strength index (RSI) in the negative land suggest that bears are in control.
In the event the price turns up from the present level, the buyers will probably again try to push the price over the neckline of the head and shoulder pattern. If they succeed, the set may rally to the 61.8% Fibonacci retracement level at $48,231. Such a move will imply that the set could have bottomed at $30,000.
Conversely, if the bears sink the price below $30,000, the sale could intensify as the stops of the dip buyers are likely to get hit. There is a minor support at $28,000 but when that cracks, the next stop could be $20,000.
Ether (ETH) fell over the 38.2% Fibonacci retracement level at $2,738.74 on May 26 but the bulls could not push the price over the 20-day EMA ($2,888). This implies traders are selling rallies to the 20-day EMA.
The moving averages are on the verge of a bearish crossover and the RSI is at the negative territory, indicating the route of least resistance would be to the downside.
If bears sink the price below $2,378.54, the ETH/USDT pair may fall to $2,079.94. A break below this support could result in a retest of the May 23 reduced at $1,728.74.
This negative view will invalidate if the price turns up from the present level or the support and breaks over the 20-day EMA. Such a move will suggest a change in sentiment and the set may then rally into the 61.8% retracement level at $3,362.72.
A shallow pullback after a sharp decline indicates the bears are unrelenting and they’re shorting even on minor rallies.
BNB/USDT daily graph. Source: TradingView
The bears are trying to pull the price below the $306.61 support. If they succeed, the BNB/USDT pair may drop to $257.40 and then to $211.70. A powerful bounce off this support may keep the pair range-bound between $211.70 and $395.09 for a couple of days.
Contrary to this assumption, if the price turns up and breaks over the 20-day EMA ($427), the relief rally may expand to the 50-day SMA ($521). This level may act as a resistance however if the bulls arrest the next decline above $428, it is going to imply the downtrend might be finished.
Cardano (ADA) climbed above the 20-day EMA ($1.63) on May 26 but the bulls could not sustain the higher amounts. The price turned down from $1.83 and the bears have pulled the altcoin below the $1.55 support today.
If the bears maintain the price below $1.43, the ADA/USDT pair may drop to $1.24 then into the critical support at $1. In the event the price rebounds off $1 again, the set could stay range-bound for a couple of days.
Alternatively, if the price turns up and rises above $1.58, it is going to suggest powerful buying at lower prices. The bulls will then make one more effort to push the price over $2. If they manage to do this, the set may challenge the all-time high at $2.47.
The failure of the bulls to construct upon the breakout from the downtrend line indicates a deficiency of demand at greater levels. The bears declared their selling on May 27 and have pulled Dogecoin (DOGE) below the 50-day SMA ($0.35).
DOGE/USDT daily graph. Source: TradingView
If the price breaks below $0.29, the DOT/USDT pair may drop to $0.25 then to $0.21. This is a significant support to be on the lookout because when it cracks, the sale could intensify and the set may drop to $0.15 and then $0.10.
The moving averages are on the verge of a bearish crossover, suggesting the bears are in control. This negative view will invalidate if the price reverses direction and breaks over the $0.43 to $0.47 overhead immunity.
This implies the sentiment is negative and traders are in a rush to shut their extended positions onto a shallow pullback.
If the price breaks and sustains below $0.88, the bears will try to pull the price down to $0.65. The downsloping 20-day EMA ($1.14) and the RSI below 40 suggest the route of least resistance would be to the downside.
A break below $0.65 could open the doors for a further decline to $0.56. To the contrary, in the event the bulls defend the $0.88 support, the XRP/USDT pair could rise into the 20-day EMA. A breakout of this immunity could result in a rally into the 50-day SMA ($1.34) and the downtrend line.
Polkadot (DOT) reached the critical overhead resistance at $26.50 today but the bulls could not drive the price above it. This implies the bears are protecting this level aggressively. If bears pull the price below $19.65, the altcoin could drop to $15.
The downsloping moving averages and the RSI below 39 suggest the bears are in control. A break below $15 will suggest the beginning of a new downtrend. Conversely, if the bulls defend the 15 level, the DOT/USDT pair could consolidate at a range for a couple of days.
This negative view will invalidate if the price turns up from the present level or 15 and fractures over $26.50. Such a move could push the set to $31.28. A breakout of this immunity will suggest the bulls are back in the match.
If they succeed, the ICP/USDT pair may drop to the all-time low in $86.01. If this support also cracks, the set could decline into the next target objective at $60.
To the contrary, in the event the bulls defend the 120 support, the set may extend its remain inside the range for a couple more days. A breakout and close above $168 is going to be the first sign that the bulls are back in the match.
On a breakout and close above $168, the set could rally to the 38.2% Fibonacci retracement level at $243.08.
Uniswap (UNI) reached the 20-day EMA ($29.58) on May 26 but the bulls could not propel the price above it. This reveals the sentiment has become negative and traders are selling rallies to the 20-day EMA.
UNI/USDT daily graph. Source: TradingView
However, the very long tail on the candlestick indicates the bulls haven’t given up yet. They will make yet another effort to thrust the price over the 20-day EMA. If they manage to do this, the UNI/USDT pair may rally into the 50-day SMA ($34.27).
Contrary to this assumption, if the price turns down from the overhead immunity, the bears will probably make one more effort to pull down the price. When the sellers sink the price below $24.40, the set could drop to $21.50 then to $18.
BTC Cash (BCH) had been trading over the $685.36 support for the past 3 days but the bulls could not push the price to the 20-day EMA ($876). This implies a deficiency of demand at greater levels.
In the event the price sustains below $685.36, the bears will try to sink the price to the May 23 reduced at $468.13. The downsloping 20-day EMA and the RSI in the negative land indicate advantage to the bears.
Unlike the assumption, when the price turns up from the present level and rises above $802, the bulls will try to propel the price to the 20-day EMA. A breakout and close over the moving averages will suggest the downtrend might be finished.
The perspectives and opinions expressed here are solely those of the writer and don’t necessarily reflect the views of Cointelegraph. Every single investment and trading move involves danger. You need to run your own research when making a decision.
Market data is provided by HitBTC exchange.