The S&P 500 and Nasdaq fell for five consecutive weeks, indicating that retailers continue to reduce exposure to risky assets. The close correlation of Bitcoin (BTC) with stock markets in the United States has resulted in its price remaining under pressure.
Bitcoin continued its decline over the weekend and is now on track for its sixth consecutive weekly loss, the first such event since 2014. Bitcoin weakness has pulled the entire crypto market, whose market capitalization has fallen below $ 1.6 trillion.
When the mood is bearish, traders sell any negative news. The reduction in the stable TerraUSD (UST) coin in US dollars also seems to increase the pressure on sales in the crypto market.
After six consecutive weekly Bitcoins ended in the red, is it time to recover? Let’s study the charts of the top 5 cryptocurrencies that show signs of stabilization in the near future.
BTC / USDT
Bitcoin declined from a 20-day exponential moving average (EMA) of $ 38,268 on May 5 and crashed below the uplink support line. The move also reversed the positive divergence in the Relative Strength Index (RSI).
Moving averages have started to decline and the RSI is approaching the resale zone, signaling that the bears are in control.
The BTC / Tether (USDT) pair has less support at $ 34,322, but if the bulls fail to defend this level, the decline could widen to $ 32,917. This is a key level to watch out for because if it breaks, the pair could witness a panicked sale, and the next stop could be $ 28,805.
If the price rises from $ 34,322, the recovery could face sales close to a 20-day EMA. If the price falls from this level, it will suggest that sentiment remains negative and that traders are selling at rallies. This could increase the chances of the trend continuing to fall.
This negative attitude could be undone in the short term if the bulls push and keep the price above the 20-day EMA. If that happens, the pair could rise to a 50-day simple moving average (SMA) of $ 41,466.
Moving averages that are declining indicate that bears are in command, but levels of resale on the RSI suggest that easing or consolidation is possible in the near future. If the recovery fails to climb above the 20-EMA, the Bears could maintain sales pressure and the pair could fall to $ 32,917.
On the other hand, a break and close above the 20-EMA could signal the beginning of a strong recovery. The pair could then rise to 50-SMA. Buyers will have to push and keep the price above $ 40,000 to signal that the downward trend may be over.
ALGO / USDT
Algorand (ALGO) has been trading within the downstream channel for the past few days. The price bounced off the channel’s support line on May 1 and the bulls jumped the hurdle on the $ 0.69 20-day EMA, suggesting sales pressure could be eased.
If customers keep the price above the 50-day SMA at $ 0.76, the ALGO / USDT pair could gather on the channel’s resistance line. This is an important level that bulls must overcome. If they manage to do so, it will suggest the beginning of a new movement. The pair could rise to $ 1.10 first, and later to $ 1.25.
On the other hand, if the price turns down from the resistance line, this will suggest that the pair could extend their stay within the canal for a few more days. The Bears will have to sink and keep the price below the canal to indicate the continuation of the downward trend.
The 20-EMA has emerged and RSI is in positive territory, indicating an advantage to customers. There is less resistance at $ 0.80 and if the bulls solve this obstacle, the pair could climb to the resistance line of the canal.
On the other hand, 20-EMA is a critical level to watch out for. If the price bounces off this level, it will suggest that sentiment has turned in favor of customers. This could increase the probability of breaking above $ 0.80. Alternatively, if the price falls below the 20-EMA, the next stop could be the 50-SMA.
XMR / USDT
Monero (XMR) has found support close to $ 200 psychological support in recent days. Buyers have not allowed the price to break below the downward trend line, suggesting they are trying to turn the level in support.
The Bulls will have to push and keep the price above the 20-day EMA of $ 223 to suggest that the correction phase may be over. There is less resistance at $ 240, but if the bulls solve this hurdle, the XMR / USDT pair could rise to $ 289.
On the contrary, if the price drops from the current level or the 20-day EMA, it will suggest that the bears have not given up yet. This could increase the likelihood of a break below $ 200. If that happens, sales could intensify and the pair could fall to $ 150.
The pair formed a symmetrical triangle pattern indicating indecision between bulls and bears. If the bulls push the price above the line of resistance of the triangle, this will suggest that the downward trend could be over. The pair could then gather at 200-SMA and later climb towards the sample target at $ 252.
Conversely, if the uncertainty of the triangle is reduced to the underside, this will suggest that the triangle acted as a continuation. This could signal a continued downward movement. The target sample at the bottom is $ 164.
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XTZ / USDT
Tezos (XTZ) broke below the long-term uplink on April 29, and the Bears successfully defended their breakthrough level on May 5. The Bears have tried to start a downward trend, but are struggling to maintain a lower level.
If the bulls push and keep the price above the uptrend line, it will suggest that the markets have rejected the collapse. The XTZ / USDT pair can then try to strengthen the overhead zone between the 50-day SMA of $ 3.18 and $ 3.40.
This positive view could be reversed if the price turns down from the uptrend line again. If that happens, it will suggest that the bears have turned the upward trend line into resistance. Breaking and closing below $ 2.39 could trigger a new downward trend that could reach $ 2.00.
The 20-EMA leveled off and the RSI formed a bullish divergence on the 4-hour chart suggesting that the negative momentum is weakening. The pair could now try to rise to $ 2.90 where the bears could offer strong resistance. A break and close above this level could open the door for a possible increase to $ 3.00 and later to $ 3.30.
Alternatively, if the price drops from the current level or overhead resistance, this will suggest that bears are being sold at sets. That could keep the range of money between $ 2.90 and $ 2.39. The downward trend could accelerate if the bears lower the price below $ 2.39.
THETA / USDT
Theta Network (THETA) has traded between $ 2.27 and $ 4.40 in recent weeks. This range narrowed on May 6, indicating that the bears had the advantage.
Although the $ 2.57 20-day EMA is falling, the RSI is trying to form a bullish divergence, indicating weaker sales momentum. If the bulls push the price back above the breakout level of $ 2.27, it could trap a few aggressive bears that may have launched short positions on the breakout below range.
The THETA / USDT pair could then rise to a 20-day EMA. This is an important level to look out for because if the bulls overcome this barrier, the pair could recover to a 50-day SMA of $ 3.10.
This positive attitude could be reversed if the price falls from the current level or breakout level to $ 2.27 and falls below $ 2.00.
Bulls buy falls close to the psychological level for $ 2.00. If buyers raise the price above the downward trend line, it will suggest that bears may be losing grip. The pair could then reach overhead resistance at $ 2.64. This level may again act as strong resistance, but if customers remove this hurdle, bullish momentum could increase.
Contrary to this assumption, if the price turns down from the 20-EMA or the downward trend line, it will suggest that bears continue to sell at sets. That could increase the possibility of breaking below $ 2.00 and continuing the downward trend.
The views and opinions expressed here are solely those of the authors and do not necessarily reflect the views of Cointelegraph. Every move of investing and trading involves risk, you need to conduct your own research when making a decision.