The Dow Jones Industrial Average fell for the eighth week in a row, marking its first decline in history. from On May 20, 1923, the S&P 500 was briefly bearish. This indicates that traders continue to sell risky assets for fear of a recession.
Bitcoin (BTC) has been under pressure for several weeks due to its close correlation with the US stock market. Bulls try to push Bitcoin higher over the weekend to avoid a longer streak of losses.
Bitcoin’s performance in the first five months was the worst since 2018. This indicates that the seller is in control. However, after a few weeks of bearishness, the cryptocurrency market could be at the peak of a bear market rally.
What level of risk could signal the beginning of a lasting recovery? Let’s take a look at the top 5 crypto charts that may perform better in the short term.
BTC/USDT
Bitcoin rebounded from its critical support at $28,630 on May 20, indicating a strong buy near this level. The bulls are attempting to push the price above the downtrend line, which may be the first sign that selling pressure may decrease.
Above the downtrend line, the BTC/USDT pair could move higher towards the 20-day exponential moving average ($31,887). Bears are likely to defend this level vigorously. If the price declines from the 20-day EMA, bearish will once again attempt to move the pair below $28,630.
If they can do that, the pair could drop as far as $26,700. This is an important level to keep an eye on as a break below and closing could drop as low as $25,000 and $21,800.
Conversely, if the buyer pushes the price above the 20-day EMA, it could push towards the 61.8% Fibonacci retracement level of $34,823. Adjusting this level could lead to the 50-day simple moving average ($37,289).
The 4-hour chart shows the price is pressing between the downtrend line and $28,630. The 20-EMA and 50-SMA have flattened and the Relative Strength Index (RSI) is just above the midpoint, suggesting a balance between supply and demand.
If the buyer pushes and holds the price above the downtrend line, this equilibrium can tilt in favor of the buyer. The pair can then begin their march north towards the 200-SMA.
Conversely, if the price declines from its current level, bearishness will drive the price down below $28,630 and try to dominate.
BNB/USDT
Binance Coin (BNB) recovered sharply from the critical support of $211 and reached overhead resistance at the 20-day EMA ($323). This is an important level for bearishness to defend. Because breakouts and closes above it could indicate that the bottom may be in place.
Above the 20-day EMA, the BNB/USDT pair could rise to $350 and then the 50-day SMA ($376). This level could again act as a difficult obstacle, but if the bulls push the price above that, the pair could rally to the 200-day SMA ($451).
Contrary to this assumption, if the price drops sharply from the 20-day EMA, it indicates that the bear has not given up yet and is continuing to sell at higher levels. Then the pair could drop to $211. If the price rebounds from this level, it could consolidate between $211 and $320 over a few days.
The bulls are attempting to push the price above the $320 indirect resistance. If successful, it could go up to $350. Bears are more likely to defend this level aggressively. If the price drops from $350, the pair may drop back to $320.
If the price breaks out of this level, it can remain in the $320 to $350 range for a while. Bullish momentum could move above the 200-SMA and the pair could move up to $380 and later to $400.
Conversely, if the price declines from its current level, the pair may drop to $286 and then to $272.
XMR/USDT
Monero (XMR) fell below the strong support of $134 on May 12, but the bearish could not sustain the lower levels. This suggests an aggressive buy on a downtrend. The price recovered sharply to the 20-day EMA ($179).
If the bulls push and hold the price above the 20-day EMA, the XMR/USDT pair could move higher towards the overhead resistance area between the 200-day SMA ($202) and the 50-day SMA ($212). Bears are expected to have a strong defense in this area.
Although the price has moved down in this area, if the bulls hold back a subsequent decline in the 20-day EMA, it will signal a potential change in the trend. Conversely, if the price declines from its current level, a bearish pair will try to pull the pair towards $150 and then $134 thereafter.
The 4-hour chart shows the formation of higher lows and higher highs. The bearish tried to lower the price below the 50-SMA, but the bulls successfully defended the level. This suggests a shift in sentiment from selling on a rally to buying on a downtrend.
The pair could rally next to the 200-SMA where the bear could provide strong resistance. If the bull crosses this barrier, it could push up to $225. Contrary to this assumption, if the price declines and falls below the 50-SMA, the pair could drop as far as $150. A drop below this level could challenge the strong support of $134.
Relevant: Dollar Cost Average or Batch: Which Bitcoin Strategy Is Most Effective, Regardless of Price?
ETC/USDT
Ethereum Classic (ETC) fell sharply from $52 on March 29 to $16 on May 12. The bulls are attempting to start a recovery that could face resistance at the 20-day EMA ($23).
If the price declines from the 20-day EMA, the bearish will attempt to resume the downtrend again, pulling the ETC/USDT pair below the $16 key support level.
Conversely, if buyers push the price above the 20-day EMA, it will hint at the start of a stronger relief rally. The positive divergence of the RSI also suggests potential for recovery in the near term. The pair could then move up to the 38.2% Fibonacci retracement level of $30, where the bear could find strong resistance.
The price has been trading between $19 and $23 for a while. This suggests that while the bulls are attempting to form higher lows, the bears continue to pose a strong challenge at the higher levels. The flat 20-EMA and 50-SMA do not provide any clear advantage to a bullish or bearish market.
A new uptrend will begin when buyers push the price above $23. The pair could first rally to 200-SMA and then climb up to $33. Or if the price drops and falls below $19, the bear will have the upper hand. It then attempts to bring the pair down to $16.
mana/USDT
Decentraland (MANA) fell from the EMA ($1.24) on the 20th of May, but a positive sign is that the bull market did not allow the price to stay below the psychological level of $1.
The buyer once again attempts to push the price above the 20-day EMA. If successful, the MANA/USDT pair could advance towards the 50-day SMA ($1.72). The bearish could again find strong resistance at this level, but if the bulls clear this obstacle, they could begin their northward march towards the 200-day SMA ($2.72).
Contrary to this assumption, if the price drops below $1, bearishness will try to subdue the pair towards the significant support of $0.60. A break and close below this level could trigger the next leg of the downtrend.
The pair remains between $0.97 and $1.36, indicating that the bulls are buying below $1 and the bears selling in the rally. The 20-EMA and 50-SMA have flattened, indicating that consolidation may continue for a while.
If the buyer pushes the price above the 50-SMA, the pair may move towards the $1.36 resistance level. If buyers overcome this barrier, bullish momentum could be restored. Conversely, if the price declines and plunges below the $0.97 support level, bearishness may prevail.
The views and opinions expressed herein are solely those of the authors and do not necessarily reflect those of Cointelegraph. All investments and trading involve risks and you should do your own research when making decisions.