Bitcoin remains on slippery ground and the completion of a bearish candle pattern indicates that further downside is possible for BTC and altcoins.
Tesla CEO Elon Musk tweeted on May 13 that the company will stop accepting Bitcoin (BTC) payments for its vehicle purchases, citing "the increasing use of fossil fuels for Bitcoin mining and transactions, especially coal". Shortly after the announcement, the price of Bitcoin fell 17% to hit a new local low of $ 46,000.
While Musk’s decision is a short-term blow to market sentiment, it is unlikely to change the course of the crypto markets entirely because institutional demand for cryptocurrencies remains high. The proof of this was yesterday when Cowen Inc., a 103-year-old bank, announced that it had partnered with Standard Custody and Trust Co. to enter the crypto custody business.
Daily performance of the cryptocurrency market. Source: Coin360
Another indication of the growing institutional interest in cryptocurrencies is the sharp rise in "cryptocurrencies in custody" of the Gemini cryptocurrency exchange. The exchange led by the Winklevoss twins now has $ 30 billion worth of cryptocurrency in custody.
The long-term outlook for cryptocurrencies remains strong, but short-term price fluctuations can cause big drawdowns in portfolios. Therefore, traders should keep a close eye on price action and follow their trading rules without getting sucked into emotion-driven trading.
Let’s analyze the charts of the top 10 cryptocurrencies to determine the trends and path of least resistance for the next move.
BTC / USDT
Bitcoin has formed a bearish head and shoulders pattern, which will complete on a breakout and close below the neckline of the setup. The sharp drop on May 12 and today had brought the price down to the neckline, but the bulls are trying to defend the support.
BTC / USDT daily chart. Source: TradingView
However, the 20-day exponential moving average ($ 54,958) has started to decline and the Relative Strength Index (RSI) has dipped into the negative zone, indicating that the bears have the upper hand.
If the price breaks below the neckline, the H&S setup will be completed. This pattern has a target of $ 31,653.73. However, it may not be a direct decline as the bulls will try to stop the decline at $ 42,500 and then $ 40,000.
Contrary to this assumption, if the bulls hold the price above $ 46,985, the BTC / USDT pair could rally to $ 52,323.21, where the bears are likely to mount strong resistance again.
ETH / USDT
Ether (ETH) formed a bearish engulfing pattern on May 12 when the price reversed direction after hitting a new all-time high at $ 4,374.67. However, the long tail of today’s candle suggests that sentiment remains positive and bulls are buying dips.
ETH / USDT daily chart. Source: TradingView
Both the moving averages are rising and the RSI is close to the overbought zone, which suggests that the bulls are in control. Buyers will now try to push the price above the all-time high. If they are successful, the ETH / USDT pair can rally to $ 5,000 and then $ 5,723.66.
Contrary to this assumption, if the price turns down from the current level or overhead resistance and breaks below the 20-day EMA ($ 3,348), it will suggest that supply exceeds demand. That could bring the price down to $ 3,000 and then down to the 50-day simple moving average ($ 2,552).
BNB / USDT
Binance Coin (BNB) is facing stiff resistance near the $ 680 level. Repeated failures to rise and stay above this level may have attracted short-term traders profit booking on May 12, which it drove the price below the 20-day EMA ($ 593).
BNB / USDT daily chart. Source: TradingView
However, the long tail of the candle today suggests a strong buy at lower levels. If the bulls push and hold the price above the 20-day EMA, the BNB / USDT pair may retest the $ 680 resistance.
A breakout and a close above the resistance could initiate the next leg of the uptrend which can hit $ 771. Conversely, if the bulls fail to sustain the price above the 20-day EMA, the pair may gradually fall to the 50-day SMA ($ 496) and then to $ 440.
ADA / USDT
After holding above the breakout level at $ 1.48 since May 6, Cardano (ADA) has broken above the overhead resistance of $ 1.83. This suggests that the bulls have dominated the bears and the uptrend has resumed.
ADA / USDT daily chart. Source: TradingView
The rise of the 20-day EMA ($ 1.52) and the RSI above 66 suggest that the path of least resistance is to the upside. If the bulls can sustain the price above $ 1.83, the ADA / USDT pair could climb to the next target at $ 2.25.
Contrary to this assumption, if the price turns down from the current level and breaks below $ 1.83, the pair may extend its range-bound action for a few more days. A breakout and close below $ 1.48 will suggest that the bears have dominated the bulls and the pair may fall to the 50-day SMA ($ 1.32).
DOGE / USDT
Dogecoin (DOGE) bounced off the 20-day EMA ($ 0.43) on May 11, but the higher levels were met with selling pressure as seen from the long wick on the day’s candle. Selling resumed on May 12 and the bears pushed the price down below the 20-day EMA.
DOGE / USDT daily chart. Source: TradingView
Buyers are attempting to defend the 61.8% Fib retracement level at $ 0.38, but are facing strong resistance at $ 0.45. If the price turns down and falls below $ 0.35, the DOGE / USDT pair may drop to the 50-day SMA ($ 0.25).
Alternatively, if the price rebounds from the current level and rises above $ 0.45, it will suggest accumulation at lower levels. The pair can then rally to $ 0.55 where the bulls are likely to meet strong resistance. If the price turns down from this resistance, the pair can consolidate between $ 0.45 and $ 0.55 for a few days.
XRP / USDT
The bulls were unable to hold XRP above the downtrend line for the past few days, indicating strong resistance from the bears. That may have resulted in short-term traders abandoning their positions, lowering the price to the 50-day SMA ($ 1.20).
XRP / USDT daily chart. Source: TradingView
If the price bounces off the 50-day Simple Moving Average (SMA), the bulls will retry to push the XRP / USDT pair above the downtrend line and resistance above $ 1.66. If they manage to do that, the pair could retest the 52-week high at $ 1.96.
However, the 20-day EMA ($ 1.41) has started to turn down and the RSI is trading in the negative zone, suggesting a small advantage for the bears. If sellers can sink and hold the price below the 50-day SMA, the pair may decline to $ 1.01 and then $ 0.88.
DOT / USDT
Polkadot (DOT) has repeatedly failed to break above the $ 42.28 overhead resistance, suggesting that the bears are defending the level aggressively. However, the bulls continue to buy at lower levels as they have not allowed the price to stay below $ 32.50.
DOT / USDT daily chart. Source: TradingView
The flat moving averages and the RSI near the midpoint indicate that the DOT / USDT pair could remain stagnant between $ 32.50 and $ 42.28 for a few more days.
A breakout and a close above $ 42.28 could push the price to an all-time high of $ 48.36. This level can again act as a stiff resistance, but if the bulls carry the price above it, the pair can resume its uptrend towards the target target at $ 58.06.
Alternatively, if the bears lower the price below $ 32.50, the pair can drop to $ 26.50. A strong bounce at this level would suggest that the pair could extend its stay within the wide range of $ 26.50 to $ 42.28 for a few more days. A break below $ 26.50 could suggest the start of a new downtrend.
BCH / USDT
Bitcoin Cash (BCH) rose to a new 52-week high at $ 1,638.08 on May 12, but the bulls were unable to sustain the higher levels. That resulted in aggressive profit booking by traders, bringing the price down to the 20-day EMA ($ 1,213).
BCH / USDT daily chart. Source: TradingView
The bearish engulfing candlestick pattern on May 12 suggests a possible trend reversal. If the bears can break out and hold the price below the 20-day EMA, the BCH / USDT pair could drop to the 61.8% Fib retracement level at $ 1,054.41 and then to the 50-day SMA ($ 867).
Contrary to this assumption, if the price recovers and sustains above $ 1,213.51, the pair may enter a range-limited action for a few days. The flattening of the 20-day EMA and the RSI just above the midpoint also suggest some days of consolidation.
LTC / USDT
Failure of Litecoin (LTC) to hold above the resistance line of the rising widening wedge formation on May 12 could have attracted strong selling from traders. That dragged the price to the 20-day EMA ($ 313).
LTC / USDT daily chart. Source: TradingView
If the bears hold the price below $ 300, the LTC / USDT pair could fall to the 50-day SMA ($ 260) and then to the wedge support line. A break below the wedge could signal the start of a new downtrend.
Conversely, if the bulls hold the price above the 20-day exponential moving average (EMA), the pair may attempt a rally, which will likely face strong resistance near $ 340. A break above the line resistance of the wedge will suggest that the correction is over.
UNI / USDT
Uniswap (UNI) continues to operate within an upstream channel. The bears pushed the price down below the 20-day EMA ($ 38.35) on May 10, but failed to break the support of the 50-day SMA ($ 34.50), which shows buying at lower levels. .
UNI / USDT daily chart. Source: TradingView
The bulls attempted to resume the bullish move on May 12, but were unable to sustain the higher levels as seen from the long wick on the day’s candle. This indicates that traders are selling their positions in rallies.
Buying near the 50-day SMA and selling higher suggests range action for a few days. The next trend move can begin if the bulls push and hold the price above $ 45. Conversely, a break below the channel support line could start a new downtrend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.
The entry Price Analysis 13/5: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, BCH, LTC, UNI was published first in Bitcoin, Cryptocurrency and Blockchain News.