Bitcoin and select altcoins have seen a relief rally, possibly catalyzed by the recovery of the U.S. stock market. However, Bitcoin remains pinned below $27,000, with analysts calling for a potential fall to the low $20,000 levels. The bulls are unlikely to give up the $25,000 support without a fight, and the Sell-side Risk Ratio metric suggests that “sellers are exhausted on both sides,” indicating that big moves are coming.
Market observers expect a debt ceiling deal to be reached, which has boosted the price of the United States equities markets on May 26. If the risk-on sentiment sustains, it could increase demand for Bitcoin and select altcoins. But what are the crucial resistance levels that need to be crossed for a sustained recovery to begin?
Bitcoin has bounced off $25,871, close to the strong support zone of $25,811 to $25,250. The bulls will try to push the price to the 20-day exponential moving average ($27,173), which may attract strong selling by the bears. If the price turns down from the 20-day EMA, it will signal negative sentiment where the bears are selling on rallies. The crucial level to watch on the downside is $25,250, as the bulls are expected to defend this support with all their might. If this level crumbles, the BTC/USDT pair may fall to $24,000 and eventually to $20,000. If bulls pierce the overhead resistance at the 20-day EMA, the pair could rise to the resistance line, indicating that the correction may be over.
Ether has been trading inside a falling wedge pattern for the past several days, with the bulls aggressively purchasing the dip on May 25. The bulls are trying to nudge and sustain the price above the 20-day EMA ($1,829). If they succeed, the ETH/USDT pair could rise to the resistance line, an important level to keep an eye on. A break above it will increase the possibility of a rally to $2,000. If the price turns down from the current level or the resistance line, it will suggest that bears remain active at higher levels, keeping the pair stuck inside the wedge for a few more days.
BNB descended near the horizontal support of $300 on May 26, but the long tail on the candlestick shows buying by the bulls. The 20-day EMA ($311) remains the key resistance to watch out for on the upside. If the price once again turns down from this level, it will increase the likelihood of a break below $300. If this level gives way, the BNB/USDT pair could slide to the support line of the descending channel pattern. If the price turns up and breaks above the 20-day EMA, it will suggest solid demand at lower levels. The pair could then attempt a rally to the resistance line, indicating the start of a rally to $350.
XRP has turned positive, with traders buying the dips to the 20-day EMA ($0.45). The price remains stuck between the moving averages, indicating indecision among the bulls and the bears. A break and close above the 50-day simple moving average ($0.47) will tilt the advantage in favor of the bulls, with the XRP/USDT pair starting its northward march to $0.54 and subsequently to $0.58. Alternatively, if the price breaks and sustains below the 20-day EMA, it will indicate that bears are back in the game, and the pair could then drop to the crucial support at $0.40.
Cardano is witnessing a tough tussle between the bulls and the bears near the uptrend line. The downsloping 20-day EMA ($0.37) and the relative strength index near 42 indicate that bears have the upper hand. Sellers will have to tug the price below $0.35 to start the next leg of the downward move to $0.30. If bulls want to seize control, they will have to shove and sustain the ADA/USDT pair above the moving averages. That will open the doors for a possible rally to the overhead resistance at $0.44, where the bears may again mount a strong defense.
Dogecoin has seen the bulls trying to protect the $0.07 support level, with another hurdle at $0.08. If the price turns down from the current level or the 20-day EMA, it will suggest that bears are selling on every minor rally, increasing the likelihood of a break below $0.07 and the pair slumping to $0.06. The bulls will have to maintain their buying pressure and kick the price above the 20-day EMA ($0.07) if they want to prevent another assault by the bears, with a possible journey to $0.10.