The United States stock markets appear to be recovering as debt ceiling talks progress, showing promise that a debt default may be avoided. However, this optimism has not extended to the cryptocurrency markets. Bitcoin (BTC) slipped below the $27,000 support on May 17, suggesting that buyers are struggling to sustain relief rallies in the market.
Institutional investors seem to be profits due to macro uncertainty. CoinShares’ Digital Asset Fund Flows Report indicates a total outflow of $200 million from digital asset investment products in four consecutive weeks. While the short-term picture remains negative, the chart structure on Bitcoin has not been broken. Bitcoin has corrected about 15% from its local high of $31,000 made on April 14 but remains above $25,000, signaling the weakness looks like a corrective phase in a bullish move.
In Bitcoin’s price analysis, a recovery stalled at the 20-day exponential moving average ($27,694) on May 15. This indicates that sentiment remains negative and bears sell on rallies. On the other hand, support at $26,500 could open the doors for a decline to $25,250, a critical level to watch, as a break below it may accelerate selling.
Ether (ETH) turned down from the 20-day EMA ($1,844) on May 17, which suggests that bears fiercely protect this level. The past few days’ price action formed a falling wedge pattern, and the ETH/USDT pair could slide to the support line. However, if the price rebounds off the support line, bulls will make another attempt to thrust the pair above the 20-day EMA.
BNB (BNB) faced a downturn from the 20-day EMA ($316) on May 15, indicating higher levels of bear activity. Sellers will again attempt to pull the price to the strong support at $300, a crucial level for bulls to defend.
XRP (XRP) broke above the overhead resistance near $0.43 after trading in a tight range for several days. However, the long wick on the day’s candlestick shows that bears sell relief rallies to the downtrend line. This suggests that the XRP/USDT pair may oscillate between the downtrend line and $0.40 for some time.
Overall, determining the important support levels that bulls need to hold to launch the next rally in Bitcoin and altcoins requires careful studying of the charts of top-10 cryptocurrencies. Furthermore, the article highlights that readers should conduct their own research when making a decision, emphasizing that this article is for general information purposes and not intended to serve as investment advice or recommendations.
Source: Cointelegraph
