Bitcoin and Altcoins: Technical Analysis for May 2021

Bitcoin and Altcoins: Technical Analysis for May 2021

The US stock market saw a recovery on May 17 and 18 due to hopes of a debt ceiling agreement, but some of the gains were lost on May 19 due to reports of a temporary halt in talks. The US Dollar Index (DXY) also turned down on May 19 after Federal Reserve Chair Jerome Powell hinted at an end to rate hikes. On the other hand, while Bitcoin’s short-term outlook is uncertain, analysts remain bullish about its long-term prospects. Blockstream CEO Adam Back recently stated that “hyper-Bitcoinization” could soon occur, which would increase the demand for Bitcoin and cause its price to soar.

Bitcoin Technical Analysis

The BTC/USDT pair is currently experiencing a tough battle between the bulls and the bears in the area between the support line and $25,250. The downsloping 20-day EMA at $27,590 and the RSI in negative territory indicate that the bears have a slight advantage. However, the fact that the bears could not maintain the price below $26,500 suggests that the selling pressure has decreased at lower levels. If buyers can break through the overhead resistance, the pair may rally to the 50-day SMA at $28,412 and then to the resistance line, turning the tables in favor of the bulls.

Altcoin Technical Analysis

Ethereum (ETH) is currently struggling to break above the 20-day EMA ($1,840), but the long tail on the May 16 to May 18 candlestick shows that the bulls are still buying intraday dips. If the bulls can break above the 20-day EMA, the ETH/USDT pair may rise to the resistance line of the falling wedge pattern, which would signal the start of a new uptrend. Binance Coin (BNB) is trading inside a descending channel pattern, and the price turned down from the 20-day EMA ($315) on May 18. If the bears can sink the price below the support line of the channel, the pair may fall to $280. On the other hand, if buyers can break and close above the 20-day EMA, the path may be clear for a rally to the resistance line.

XRP is currently experiencing a comeback by the bulls, with the flattening 20-day EMA and positive RSI indicating a reduction in selling pressure. There is a strong resistance zone between the downtrend line and the 50-day SMA ($0.48), but if the bulls can cross this obstacle, the XRP/USDT pair may march northward toward $0.54. Cardano (ADA) has not given up much ground from the 20-day EMA, which is an encouraging sign. If the bulls can launch the price above the 20-day EMA, the ADA/USDT pair may climb to the 50-day SMA ($0.39) and then attempt a move to $0.44.

Dogecoin (DOGE) may rally to the 50-day SMA ($0.08) if the bulls can clear the overhead hurdle of the 20-day EMA ($0.07), but if the price turns down from the current level and plummets below $0.07, it will indicate that the bears have overpowered the bulls. Polygon (MATIC) may pick up momentum and reach the downtrend line if bulls can overcome the strong selling by the bears between the 20-day EMA ($0.91) and $0.94. Solana (SOL) turned down sharply from the downtrend line on May 18, indicating that the bears are fiercely defending the level. If they can sink the price below support at $19.85, the pair may fall to $16.

Polkadot (DOT) has been struggling to start a recovery, indicating that demand dries up at higher levels. A break and close below $5.15 will complete a descending triangle pattern and open the doors for a possible decline to $4.22. On the other hand, if the price rises above the 20-day EMA ($5.51), the DOT/USDT pair could rally to the 50-day SMA ($5.97) and then to the downtrend line. Litecoin (LTC) turned down from the overhead resistance of $96 on May 18, but the bulls did not allow the price to slip below the 50-day SMA ($89), indicating that they are trying to flip this level into support. If the bulls can clear the overhead hurdle at $96, the LTC/USDT pair may rally to $106.


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