While the bitcoin market is under intense selling pressure, supporting it at key support levels could lead to the growth of digital currencies such as Ethereum, Cardano, Solana and Polygon.
During strong uptrends, any corrections lead to increased purchases; Because investors and traders expect the price to fluctuate upwards, and this will lead to a positive sentiment in the market; That is why the upward market reform is not widespread and the trend continues to move rapidly.
However, when the trend changes from upward to downward, traders wait to sell in price rallies; Because they think the price will go down. In a bearish market, support levels are easily broken and the price takes a downward trend.
In general, a downtrend that occurs after a strong uptrend does not end before the buyer surrender phase in which they no longer believe in a price uptrend. It is at this time that the price floor of the trend is determined.
In the midst of all these fluctuations, traders need to look at the long-term scenario and the fundamental factors of the market. In such a situation, traders should make an informed decision instead of getting excited.
Bitcoin fell below the 200-day moving average (SMA200) in the $ 40,235 area on May 19 (May 29). Institutional investors closely monitor this indicator and usually do not make a purchase when the price falls below this area and stays there for a while.
Buyers raised the price above the 200-day moving average the next day but failed to stabilize. This means that sellers sell at every rally. Bitcoin is currently likely to fall below $ 28,850. This area is very important and if broken, you can expect a further fall to the range of $ 20,000.
The 50-day moving average (SMA50) has a downward slope and the Relative Strength Index (RSI) is in the sell-off range, indicating a higher hand of sellers.
However, if the price of Bitcoin recovers in support of $ 28,850, buyers will once again try to raise the price above the 200-day moving average. If they succeed, we may see a price increase up to the neck and shoulders pattern.
Bitcoin price chart in 4-hour time frame shows that sellers have traded in price recovery jumps; This means that sentiment in the market is bearish, and traders believe that pullbacks to resistance levels are an opportunity to trade shorts.
The simple moving average has 50 periods of downward slope and the relative strength index is in the negative range. In other words, it can be said that the market situation is in favor of sellers. The first sign of market strength is the jump and closing of the price above the downtrend line. Such a move could pave the way for $ 42,401 and then $ 46,000.
Ethereum May 19 fell below the 50-day moving average around $ 2,776. Buyers on May 20 and 21 tried to push the price above this moving average and stabilize it, but failed. This can be interpreted as traders trading in price jumps.
If the price of Ethereum stays below $ 1,802, it is likely to fall to the simple 200-day moving average at $ 1,578. This level is likely to receive strong support. If the price recovers from this area, we may see a rise to the simple 50-day moving average. Here, in all likelihood, sellers will re-enter the action and form a strong resistance.
If the price falls below the simple 50-day moving average, it is likely that the Ethereum will fluctuate over a period of several days. On the other hand, if sellers lower the price below the simple 200-day moving average, the sell-off is likely to fall to $ 1,289.
At the 4-hour timeframe, the price of the Ethereum fluctuates within a bearish channel, and moving averages form a bearish intersection; This may indicate that it is declining in the short term. If sellers lower the price and stabilize below the channel support line, increased selling pressure could lower the price to $ 1,289.
On the other hand, if the price recovers from the downtrend channel support line, buyers will again try to push the price of Ethereum up the channel. If successful, this could be a sign that the downturn is over. In that case, the next target would be a jump of up to $ 3,000.
Cardano managed to recover from the $ 0.95 level on May 19, and buyers were able to continue the jump the next day, but the price increase prompted investors to withdraw profits and the May 22 price fell below support. $ 48 came down.
The $ 1 to $ 0.95 range is likely to act as a strong support. If the price jumps in this support area, Cardano’s price may rise again to $ 1.48. The average 50-day moving average is flat in the $ 1.44 area, indicating fluctuations in a particular open.
On the other hand, if sellers pull the price below this support and stabilize there, Cardano is likely to fall to the simple 200-day moving average at $ 0.77. The price revival in this area is also likely to indicate that the market is not ready to accept lower levels. In this case, buyers will once again try to push the price above $ 1.
In this case, Cardano is likely to enter the stabilization phase. If the price falls below the simple 200-day moving average, this interpretation will be invalid.
In the 4-hour timeframe, the moving average of 50 cycles has gone downhill and the relative strength index is in the negative range; These conditions indicate that sellers have the upper hand. However, it is possible for buyers to enter the market and buy on the floor near the key support of $ 1.
In this case, one can expect pullback to the downtrend line and most likely this area will act as a hard resistance. If buyers push the price above the downtrend line, we may see a rise to $ 1.48. If the price falls below $ 1 to $ 0.95, this downtrend will be worthless.
The price of Solana fell below the 50-day moving average at $ 37 on Wednesday, but on Thursday we saw a strong price recovery in this area. However, Kendall’s high-pitched cheer on Thursday shows that traders were withdrawing and sellers were taking short positions in the market.
On Saturday, we saw an increase in sales pressure, and this caused the price of Solana to fall below the simple 50-day moving average. The sale continued yesterday and dropped to $ 21.1.
If the price jumps in this support area, we may see buyers trying to climb to Fibonacci 38.2% at $ 35.48. Passing and stabilizing the price above the simple 50-day moving average will indicate that the short-term trend is changing in favor of buyers.
In addition, if the price falls below $ 35.48, sellers will once again try to bring the price below $ 21.1. If successful, Solana is likely to drop to the 200-day moving average at $ 14.29.
The 4-hour timeframe indicates that moving averages are about to create a bearish intersection, which is more to the benefit of sellers. However, the relative strength index is in the negative range, which can indicate the continuation of the downtrend in the short term.
If the price recovers from $ 21.10, buyers will try to push Solana above the downtrend line. If successful, Solana’s price could make another attempt to cross the $ 35.48 mark, followed by a simple 50-day moving average.
The price of Polygan on Wednesday managed to record a new historical peak. Since then, the price of this digital currency has fallen sharply. The fall was so great that all the profits that Poligan had brought to investors by May 11 were ineffective.
Buyers supported the 50-day moving average, and Polygon rose 38.2% to $ 1.53 to Fibonacci levels. Crossing this resistance will be the first sign of a decrease in sales pressure in the market.
On the other hand, if the price falls below $ 1.53, we may see a decline to the 50-day moving average. The 50-day moving average has flattened and the relative strength index was below 45, indicating a possible stabilization in the short term.
If the price falls below the simple 50-day moving average, this analysis loses its validity. In this case, the price of the polygon may range from $ 0.68 to $ 0.54.
The 4-hour timeframe indicates that buyers are looking to stop the downtrend at 0.8. However, any price recovery in this area is accompanied by heavy resistance on the downtrend line. If the price falls from this resistance, the downtrend may continue at $ 0.68.
The simple moving average of the past 50 days is moving down the chart, and the relative strength index is in the sell-off range, indicating that sellers are pushing buyers. If the price of Polygon jumps from the current levels and stabilizes above the downtrend line, this downtrend will be invalidated. In this case, there is a possibility of recovery up to $ 1.53.