Bitcoin and several major altcoins are currently struggling to maintain their higher levels, indicating that the bears have not given up yet. Bitcoin’s 30-day volatility has dropped to 1.52%, far below the yearly average of 4% and higher. Glassnode data shows that Bitcoin’s low volatile periods have only lasted for 19.3% of its total price history. Hence, there is an expectation for volatility to pick up in June.
In an exclusive interview with Cointelegraph, Glassnode lead on-chain analyst James Check said that Bitcoin could rally to $32,000, which is its “true cost basis.” Analysts at Glassnode arrived at this level after focusing on active Bitcoin investors and removing coins that are lost forever.
The outcome of the vote on the debt ceiling in the United States House of Representatives could provide direction in the near term. If the vote succeeds, as is widely accepted, it could lead to a knee-jerk reaction to the upside. But if the vote fails, then Bitcoin is likely to break below $25,000.
The short-term charts of Bitcoin and select major altcoins suggest that the bulls may be losing their grip. What are the important support levels that the bulls need to hold to avoid a collapse? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin reversed direction from the downtrend line on May 29, indicating that the bears continue to sell near crucial resistance levels. The flattish 20-day exponential moving average ($27,273) and the relative strength index just below the midpoint do not give a clear advantage either to the bulls or the bears. If the price sustains below the 20-day EMA, the BTC/USDT pair could drop to the $25,250 support. Buyers are expected to defend the zone between $24,000 and $25,250 with all their might because if it cracks, the pair may nosedive to $20,000.
On the upside, the bulls will have to surmount the downtrend line to signal the start of a new up-move. The pair may first rise to $30,000 and later to $31,000.
The bulls are struggling to maintain Ether (ETH) above the 50-day SMA ($1,883). This suggests a lack of demand at higher levels. The bears are trying to sink the price back into the falling wedge pattern and trap the aggressive bulls. If that happens, the ETH/USDT pair may fall to $1,762 and then to the support line of the wedge.
Conversely, if the price rebounds off the resistance line of the wedge, it will suggest that the bears have flipped the level into support. The pair may then rise to the psychological resistance at $2,000 and subsequently to $2,142.
BNB (BNB) climbed and closed above the 20-day EMA ($311) on May 28 but the bulls could not continue the momentum and challenge the 50-day SMA ($319). The bears used the opportunity and pulled the price back below the 20-day EMA on May 31. Sellers will try to retest the psychological support at $300. If this level gives way, the BNB/USDT pair may descend to the support line.
Contrarily, if the price rebounds off $300, it will suggest that lower levels are attracting buyers. That may keep the pair inside the upper half of the channel for a few more days. A new up-move could begin after bulls kick the price above the channel.
XRP’s (XRP) rally is facing profit-booking near the overhead resistance of $0.54. The first support is at the 38.2% Fibonacci retracement level of $0.49 and then at the 50% retracement level at $0.48. If the price rebounds off this support zone, it will suggest that the sentiment has changed from selling on rallies to buying on dips. That will enhance the prospects of a rally above $0.54. The XRP/USDT pair may then rise to $0.58.
Cardano (ADA) turned down from the 50-day SMA ($0.38) on May 29, indicating that the bears are protecting this level aggressively. The sellers will try to pull the price below the uptrend line. This is an important level for the buyers to defend because a break below it will invalidate the bullish ascending triangle pattern. That could then start a downswing to $0.30.
Alternatively, if the price turns up from the current level or the uptrend line, it will suggest that bulls are buying on dips. The bulls will then make one more attempt to thrust the price above the 50-day SMA. If they can pull it off, the ADA/USDT pair may surge toward the $0.42 to $0.44 resistance zone.
Dogecoin’s (DOGE) recovery stalled at the 20-day EMA ($0.07), indicating that the sentiment remains negative and relief rallies are being sold into. The bears will try to strengthen their position by yanking the price below the immediate support at $0.07. If they manage to do that, the DOGE/USDT pair may start its journey toward the next support at $0.06.
Time is running out for the bulls. If they want to start a recovery, they will have to quickly drive the price above the 20-day EMA. The pair could then rally to the overhead resistance of $0.08. A break above this level will suggest that the bulls are on a comeback.
Polygon’s (MATIC) recovery fizzled out near the overhead resistance at $0.94, indicating that the bears are not willing to let go of their advantage. The bears are trying to sustain the price below the 20-day EMA ($0.90). If they do that, the MATIC/USDT pair could drop to the vital support at $0.82.
