Bitcoin and most major altcoins are falling, but charts suggest a recovery could be on the horizon.
Bitcoin extended its losses 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. “It’s interesting to see that the long/short ratio has been climbing as prices trend lower,” he said.
One of the reasons that keeps analysts bullish is Bitcoin’s
Bitcoin $26,808
The halving has followed a regular cycle until now, and analysts expect it to continue. Investor and entrepreneur Alistair Milne, citing previous cycles, said now is the time to buy.
However, in the short term, Bitcoin could come under pressure due to a relief rally in the U.S. Dollar Index (DXY). Typically, DXY has a negative correlation with Bitcoin’s performance.
What are the important support levels that could attract buyers for Bitcoin and major altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin formed a long-legged Doji candlestick pattern on May 10, which showed indecision between the bulls and bears. The sellers settled on the downside by breaking below the support line of the symmetrical triangle pattern.
The moving averages have completed a bearish crossover with the 20-day exponential moving average (EMA) at $28,142 falling below the 50-day simple moving average (SMA) at $28,496.
This, along with the relative strength index (RSI) in the negative territory, suggests that bears are in command. The downside target is $25,250. This is an important level for the bulls to defend as it is the neckline of the inverted head and shoulders pattern.
If the BTC price rebounds from this level, the bulls will once again try to push the BTC/USDT pair above the resistance line. On the other hand, a break below $25,250 could open the doors for a potential downside to $20,000.
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