Price analysis 5/12: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, LTC
Bitcoin (BTC) extended its decline on May 12 but analyst Philip Swift, co-founder of trading suite DecenTrader and creator of data resource LookIntoBitcoin, does not expect a deep correction. He said it was “interesting to note that the long/short ratio has been climbing as price has trended down.”
One of the reasons that is keeping analysts bullish is Bitcoin’s halving, which has followed a set cycle till now and analysts expect it to continue. Citing previous cycles, investor and entrepreneur Alistair Milne, said that the time to buy was now.
However, in the near term, Bitcoin could be facing pressure due to the relief rally in the U.S. dollar index (DXY). Typically, the DXY has an inverse correlation with Bitcoin’s performance.
What are the important support levels that may attract buyers in Bitcoin and the major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin formed a long-legged doji candlestick pattern on May 10, indicating indecision among the bulls and the bears. The sellers resolved that to the downside with a break below the support line of the symmetrical triangle pattern.
The moving averages have completed a bearish crossover with the 20-day exponential moving average ($28,142) slipping below the 50-day simple moving average ($28,496).
This along with the relative strength index (RSI) in the negative territory indicates that bears are in command. The next target on the downside is $25,250. This is an important level for the bulls to defend because it is the neckline of the inverse head and shoulders pattern.
If BTC price rebounds off this level, the bulls will again try to drive the BTC/USDT pair above the resistance line. On the other hand, a break below $25,250 could open the
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