Bitcoin (BTC) fell to a New Year low, and most of the major altcoins continued to fall, following the weakness of stock markets. Data from the analytical company Glassnode shows that the influx of bitcoins to centralized exchanges rose to 1.7 million BTC, the highest level since February. This suggests that whales may abandon their possessions, as they expect a long downtrend. Analysts expect that the cryptocurrency markets will enter a phase of capitulation, which usually marks the bottom. Can BTC and altcoins enter a phase of capitulation, or is it time for the cryptocurrency markets to surprise many analysts and investors by conducting a strong recovery? How Somagnews , we transmit analyst opinions and price analysis for BTC, AVAX, DOGE and these 7 altcoins.
What awaits BTC, AVAX, DOGE and these 7 altcoins this week?
Bitcoin (BTC) and Ethereum (ETH)
Bitcoin fell below the ascending channel on May 5 and continues to decline. This shows that the bears do not want to give up their advantage. The price has stopped below the critical support at $32,917, but bears may face a strong challenge from bulls at lower levels. If the price rebounds from the current level, the rally could reach the 20-day exponential moving average (EMA) ($37,670). This is an important level to watch out for, because if the price falls from the 20-day EMA, it will mean that sentiment will remain negative and traders will sell on the rally. Then the bears will make another attempt to push the BTC/USDT pair to critical support at $28,805. This level is likely to attract buying bulls again. On the other hand, a breakout and a close above the 20-day EMA will be the first sign that the selling pressure may decrease. This could pave the way for a possible rally to the 50-day Simple moving Average (SMA) ($41,279).
Ethereum (ETH) broke through the bullish line on May 7. This step invalidated the emerging pattern of the ascending triangle. A breakout of a bullish pattern is usually a bearish sign in anticipation of a breakout of the triggered pattern. Strong sales pushed the price below the immediate support at $2,445. This opens the door for a possible fall to the critical support zone between $2,300 and $2,159. Bulls are likely to defend this area with all their might, as a break below it could cause the ETH/USDT pair to fall to $1,700. If the price bounces off the support zone, the bulls will try to push the pair above the 20-day EMA ($2,790). If they succeed, it suggests that the bears may lose control. Then the pair can rise to the 50-day SMA ($3043).
BNB and Ripple (XRP)
BNB has demonstrated steady sales over the past few days. The bears pulled the price below the strong support at $350, and now it is challenging the critical level of $320. A breakout and a close below $320 will lead to a huge negative, as this level has not been broken since August 2021. There is a slight support at $300, but if this level fails to stop the decline, the BNB/USDT pair may fall to $250. Alternatively, if the price bounces back from $320, the bulls will try to push the pair above $350 and challenge the 20-day EMA ($383). Buyers will need to overcome this obstacle to signal the end of the fall. Then the pair can rise to the 50-day SMA ($409).
Ripple (XRP) fell from the 20-day EMA ($0.63) on May 5 to just below $0.62. Buyers tried to raise the price above $ 0.62 on May 6, but the bears held their positions. The XRP/USDT pair continued to decline and consolidated below the support at $ 0.55. This opens the way to retesting psychological support at $0.50. It is expected that buyers will actively defend this level, as a breakout and a close below it may cause a downtrend, which may lead to a decrease in the pair to $ 0.42. Conversely, if the price rises above the $0.50 support, the bulls will again try to keep the pair above the 20-day EMA. If they succeed, it will mean that the pressure from sellers may decrease.
Solana (SOL) and Cardano (ADA)
The inability of the bulls to raise the Solana (SOL) above the 20-day EMA on May 5 may have caused strong selling on the part of the bears. The price continued its downward movement and stopped below the strong support of $75. If the price remains below $ 75, it will mean the beginning of the next stage of the downtrend. The SOL/USDT pair may first fall to $66 and $58. If the price bounces off this zone, buyers will try to push and hold the pair above $75. If they achieve this, it will mean that the downtrend is coming to an end. Conversely, if the recovery stops at $75, it will mean that the bears have turned this level into resistance. If this happens, the bears will try to continue the decline.
Cardano (ADA) broke above the 20-day EMA ($0.81) on May 4, but the bulls could not hold higher. The price fell on May 5 and broke through strong support at $0.74 on May 8. This indicates a resumption of the downtrend. The ADA/USDT pair may now fall to $0.64, which may act as support. If the price bounces off this level, the bulls will try to push the pair above the 20-day EMA. If they succeed, it will mean that a break below $0.74 could become a bear trap. Conversely, if the relief rally stops at $0.74 or the 20-day EMA, it will indicate that bears are active at higher levels. Then sellers will try to push the pair to psychological support in the amount of $ 0.50.
Terra (LUNA) and Dogecoin (DOGE)
On May 5, LUNA deviated from the downtrend line and broke through strong support at $75 on May 7. This completed the bearish head-to-shoulder pattern, suggesting the start of a new downtrend. The long tail of the candle from May 7 and 8 indicates that bulls are buying at lower levels, but the lack of a rebound indicates that bears are not giving up their advantage. The goal of its formation is $ 50. This level is likely to attract strong buying from the bulls. If the price bounces back from $50, the bulls will try to push the Luna/USDT pair to the breakout level of $75. If the price drops from this level, the pair can form a range from 50 to 75 dollars.
Dogecoin (DOGE) bounced off the 20-day EMA ($0.13) on May 7, noting that bears continue to sell off at rallies. Sales gained momentum on May 9, and the bears pushed the price below the strong support of $0.12. The descending 20-day EMA and the relative strength index (RSI) in the negative zone suggest that sellers are gaining an advantage. If the bears keep the DOGE price below $0.12, the DOGE/USDT pair may slide to psychological support at $0.10. If the price recovers from $0.10, buyers will try to raise the pair above $0.12 and challenge the 20-day EMA. A breakout and a close above the 20-day EMA may be the first sign that the DOGE price may be stuck between $0.10 and $0.17 for a while. Contrary to this assumption, if the bears lower the DOGE price below $ 0.10, the sell-off may intensify, and the fall may last up to $ 0.06.
Avalanche AVAX and Polkadot (DOT)
Avalanche (AVAX) bounced off the 20-day EMA ($63) on May 5 and broke through critical support at $51. If the bears keep the price below $51, it will indicate a resumption of the downtrend. There is minor support at $47 and then at $43. If the price rises from both supports, buyers will try to push the AVAX/USDT pair above $51. If successful, the pair may return to the 20-day EMA, which is an important level to consider. If the bulls push the price above the 20-day EMA, it will mean that the bears may lose control. Then the pair may try to climb up to the 50-day SMA ($77). Alternatively, if the recovery slows at the 20-day EMA, it will indicate that sentiment remains negative and traders are selling on the rally. Then the bears will try to resume the downtrend again.
The narrow movement of the Polkadot (DOT) between 14 and 16 dollars on May 7 was resolved by a decline, showing that the bears outperformed the buyers. The DOT/USDT pair may now fall to critical support at $10, where bulls are expected to form a strong defense. Although the bearish 20-day EMA ($15.54) signals the advantage of bears, the RSI in the oversold zone suggests that a rebound may be imminent. If the price recovers from $10, the bulls will try to push the pair above the 20-day EMA. If they do, it will be the first sign that the pressure from sellers may ease. Alternatively, if the price drops from the 20-day EMA, it will mean that the bears continue to sell on the rally. Then the bears will try to push the pair below the strong support of $10. If this happens, the pair may fall to $7.16.