Price analysis 5/17: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, LTC
The United States stock markets are trying to recover on reports that the debt ceiling talks are showing promise and a debt default may be avoided. However, the same enthusiasm is not seen in the cryptocurrency markets. Bitcoin (BTC) has slipped back below the $27,000 support on May 17, indicating that buyers are struggling to sustain the relief rallies.
Institutional investors seem to be booking profits due to the macro uncertainty. CoinShares’ Digital Asset Fund Flows Report shows 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 it remains above $25,000, indicating that the weakness is looking like a corrective phase in a bull move.
What are the important support levels that the bulls need to hold to launch the next rally in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin’s recovery stalled at the 20-day exponential moving average ($27,694) on May 15, indicating that the sentiment remains negative and the bears are selling on rallies.
The bears will try to sink the price below the immediate support at $26,500 which could open the doors for a decline to $25,250. This remains the key level to keep an eye on because a break below it may accelerate selling. The BTC/USDT pair could then plunge to $20,000.
Instead, if the price rebounds off $25,250, it will suggest that bulls are trying to defend the neckline of the inverse head and shoulders pattern. Starting a new rally is a tough task for the bulls because the recovery is likely to face selling at the
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