Bitcoin (BTC) has struggled to climb above the $ 50,000 mark, which could have prompted traders to abandon their Bitcoin positions in order to invest in altcoins. Glass node data shows that the number of whale addresses containing more than 1,000 BTC has decreased from 2,500 in February to 2,100.
If large investors continue to sell, Bitcoin could see a sharp correction until institutional investors intervene and start buying at lower levels. Although MicroStrategy announced its acquisition of 271 Bitcoin on May 13th, existing institutional investors appear to be benefiting from the expectations.
Daily view of cryptocurrency market data. Source: Coin360
In an interview with Financial NewsSquare, Amrita Ahuja, CEO of Square, stated that the company has no plans to add Bitcoins to the current draw of approximately 8,027 Bitcoins purchased in October 2020 and February of this year.
If other institutions also refrain from buying at the current level, the bitcoin price is likely to continue to decline. However, Tom Lee, managing partner at Fundstrat Global Advisor, thinks Bitcoin’s rise is still successful. Lee raised his bitcoin goal at the turn of the year from $ 100,000 to $ 125,000.
When the action becomes set for the coin, we’ll look at five cryptocurrencies that could trigger a tax in the next few days.
BTC / USDT
Today, the bulls are buying back a neck dip in a head and shoulders pattern, but the long wick on the candle indicates profit taking at higher levels. Bitcoin sentiment appears to have changed from buying in the fall to selling in groups.
Daily chart BTC / USDT. Source: TradingView
If the bears drop and keep price below the neck, the H&S pattern will complete. This setup aims at $ 31,653.73. The 20-day Exponential Moving Average ($ 53,297) and the Relative Strength Index (RSI) below 36 indicate that the bears are in control.
However, the bulls are unlikely to give in easily. They will try to stem the decline in its support zone from $ 43K to $ 40K, but if they fail, the drop could be steep.
Contrary to this assumption, the BTC / USDT could move into a 20-day exponential moving average if the price breaks through the current level and rises above $ 51,550. A breakout and close above the $ 60,000 resistance would indicate a return of the bulls. the game.
4 hour chart BTC / USDT. Source: TradingView
The return of $ 46,435.02 did not reach the 20 EMA. This indicates that sentiment is negative and that traders are selling bunches up to 20-EMA. If bears lower the price during a split, they may increase sales.
However, if the bulls again defend their necks, the pair may attempt a break above the 20-EMA. If that happens, the rally may extend to $ 51,538.22, as the bulls are likely to encounter stiff resistance.
If the price falls from this resistance, the pair may consolidate between $ 46,000 and $ 51,500 in a few days.
XRP / USDT
XRP is currently trading inside a symmetrical triangle, which usually acts as a continuation pattern. If the bulls are able to push the price above the triangle resistance line, the alt can test the 52-week high at $ 1.96.
XRP / USDT daily chart. Source: TradingView
A breakout and near $ 1.96 may initiate the next part of the trend, which could be as high as $ 2.68. The RSI has entered positive territory, but the 20-day moving average ($ 1.43) has yet to arrive, indicating that the bears are likely to defend strongly against the resistance line.
If the price falls off the resistance line, the XRP / USDT pair may extend its stay in this range for a few more days. The pair could turn negative if the bears fall and the price is kept below the triangle. Such a move could bring the price down to $ 0.88.
4 hour chart XRP / USDT. Source: TradingView
The price has dropped to the moving average on the 4-hour chart. If the pair leaves current strength levels, it will offer to buy in the fall. Then the bulls will try to push the price towards the triangle.
Alternatively, if the bears drop and keep the price below the moving average, the pair may drop to $ 1.35 and then to the indicative triangle line. A break through this support could indicate gains for the bears.
DOT / USDT
Polkadot (DOT) broke and closed May 14 above the $ 44 upper resistance. The bulls kept pushing the price and pushing it to an all-new high of $ 49.78 on May 15th, but failed to maintain higher levels. Profit scoring pushed price below the $ 44 breakout level.
DOT / USDT daily chart. Source: TradingView
If the bulls do not surrender far from the current level, they will offer to buy in the fall.