The United States stock market experienced a sharp recovery on May 17 and May 18, driven by hopes of a debt ceiling agreement. However, the market pulled back on May 19 after talks came to a temporary halt. In response, the U.S. dollar index (DXY) turned down on May 19 when Federal Reserve Chair Jerome Powell hinted at an end to rate hikes while addressing banking system stress at a conference in Washington, D.C.
Though Bitcoin’s (BTC) short-term outlook remains uncertain, analysts continue to express long-term bullish sentiments. Blockstream CEO and co-founder Adam Back has gone as far as discussing the possibility of “hyperbitcoinization” soon transpiring, increasing demand for Bitcoin and causing its price to soar. With the rising number of “wholesalers,” Back argues that if this trend continues, it could result in 10 million people attempting to purchase one Bitcoin over several years, pushing its price further out of reach.
Bitcoin’s recent price activity has seen bulls and bears engage in constant tug-of-war, with the 20-day exponential moving average ($27,590) and the relative strength index in negative territory indicating a slight edge for the bears. However, the price’s inability to remain below $26,500 demonstrates that selling pressure decreases at lower levels. As a result, market watchers may see a rally to the 50-day simple moving average ($28,412) and beyond if buyers can break through overhead resistances.
Similarly, resistance has been encountered by Ether (ETH) investors attempting to drive the asset above the 20-day EMA ($1,840) in recent days. Despite the bears’ efforts, bullish outlooks point to an imminent break above the 20-day EMA, possibly leading to a rise to the falling wedge pattern’s resistance line. On the other hand, if the price fails to clear this hurdle, the bears could drive it back down to the support line and, eventually, $1,600.
Meanwhile, Binance Coin’s (BNB) price continues to trade within a downward channel pattern. The 20-day EMA ($315) turning down on May 18 demonstrates the bearish sentiment that prevails. A break and close above this moving average could pave the way for a rally to the channel’s resistance line. Conversely, bears are likely to try and push the price below the channel’s support line, challenging critical $280 support levels.
Moving forward, the ongoing battle between bullish and bearish forces is expected to continue dominating market trends, with fluctuating victories on each side. Observing the performance of key cryptocurrencies and possible price breakthroughs or setbacks may help investors gauge where the market is heading in the short term. Although there is no guarantee of success or failure, the growing tensions between bulls and bears in the crypto market underscore the importance of staying informed and remaining cautious when making investment decisions.
Source: Cointelegraph
