While retail traders fret over whether Bitcoin (BTC) will break above $10,000 or not, the institutional players silently continue to build positions. On May 19 major digital asset management fund Grayscale tweeted that its assets under management had increased over 80% from $2.1 billion to $3.8 billion over the period of one year.
This suggests that institutional money is gradually flowing into cryptocurrencies. The majority of the investment was done in Bitcoin, the top-ranked cryptocurrency on CoinMarketCap. Usually, institutional investors take a long-term view and are not perturbed by the short-term swings.
Daily cryptocurrency market performance. Source: Coin360
Similarly, the retail traders should also hold some of their investments as long-term positions and not be in a hurry to close them on every minor dip. However, as crypto markets are volatile, traders can use a portion of their allocation to trade and gradually build their portfolio. Let’s study the charts and attempt to find out the path of least resistance.
Bitcoin (BTC) turned down from $9,953.33 on May 18 and made an inside day candlestick pattern on May 19, which is a sign of indecision among the bulls and the bears. However, the break below $9,460 today has resolved this uncertainty to the downside.
BTC–USD daily chart. Source: Tradingview
The critical support to watch on the downside is the 20-day exponential moving average ($9,145). If the bulls purchase the dip to this support, it will indicate strength and could result in a move back to $10,000.
Above $10,000, the BTC/USD pair is likely to rally to the resistance line of the symmetrical triangle at $10,500.
Conversely, if the bears sink the pair below the 20-day EMA, a drop to the uptrend line is likely. If this support also cracks, the decline can extend to the 50-day simple moving average (8,044).
The relative strength index is forming a bearish divergence, which is a warning sign that the trend might be weakening.
Ether (ETH) is in an uptrend. Though the up move stalled just below the minor resistance of $220 on May 18, the bulls have not given up much ground. This increases the possibility of a breakout and rally to $227.097.
ETH–USD daily chart. Source: Tradingview
Both the moving averages are sloping up and the RSI is close to 60 levels, which suggests that bulls have the upper hand. If the momentum can carry the 2nd-ranked cryptocurrency on CoinMarketCap above $227.097, a rally to the resistance line of the channel at $248 is possible.
Conversely, if the bears aggressively defend the $227.097 levels, the ETH/USD pair might correct to the 20-day EMA ($202). Hence, traders can watch the price action at this level and book partial profits on the long positions and trail the rest with a suitable stop-loss.
The first sign of weakness will be a break below the support line of the channel and a downtrend could start on a break below $176.103.
The bulls failed to sustain XRP above the overhead resistance of $0.20570 for the past few days. Seeing this as an opportunity, the bears are currently attempting to sink the price back below the 50-day SMA ($0.198).
XRP–USD daily chart. Source: Tradingview
If successful, the 3rd-ranked cryptocurrency on CoinMarketCap can dip to $0.19 and below it to $0.17372.
Conversely, if the bulls defend the support at the 50-day SMA, the bulls might make one more attempt to scale above $0.20570 and the downtrend line. If successful, a move to $0.23612 is likely. This could offer a buying opportunity to the aggressive traders.
Bitcoin Cash (BCH) broke above the tight $230-$250 range on May 18 but could not hold on to the higher levels. This suggests a lack of buyers at higher levels. Currently, the price has dipped back into the range.
BCH–USD daily chart. Source: Tradingview
If the bulls defend the support at $230 once again, another attempt to clear the $250 levels is likely. If successful, the 5th-ranked cryptocurrency on CoinMarketCap can rally to $280.47. This can offer a buying opportunity to the short-term trader who wants to pocket in a quick profit.
Conversely, if the bears sink the BCH/USD pair below $230, a drop to $217.55 and then to $200 is possible.
Bitcoin SV (BSV) reached the downtrend line on May 18 but could not scale above it. On May 19, the altcoin made an inside day candlestick pattern, which suggested indecision among the bulls and the bears.
BSV–USD daily chart. Source: Tradingview
Today, the bulls again attempted to push the 6th-ranked cryptocurrency on CoinMarketCap above the downtrend line but failed. That attracted profit booking, which has dragged the price below both moving averages. If the bears can sustain the price below $191, a retest of $170 will be on the cards.
Conversely, if the BSV/USD pair turns around from the current levels and breaks above the downtrend line, a rally to $227 is likely. A break above $227 could signal the start of a new uptrend.
The bulls could not propel Litecoin (LTC) above the downtrend line in the past two days, which suggests a lack of demand at higher levels. This could have resulted in profit booking by the aggressive traders.
LTC–USD daily chart. Source: Tradingview
The bears are currently attempting to sustain the price below the moving averages. If successful, the 7th-ranked cryptocurrency on CoinMarketCap can drop to $41.2979 and below it to $39.
Conversely, if the LTC/USD pair turns around from the current levels and breaks above the downtrend line, a rally to $50.7864 will be on the cards. A break above the $50.7864-$52.2803 resistance zone could signal the start of a new uptrend.
Binance Coin (BNB) broke above the downtrend line on May 19 but the bulls are struggling to hold onto the breakout. This suggests a lack of demand at higher levels.
BNB–USD daily chart. Source: Tradingview
If the bears can sink the 8th-ranked crypto-asset on CoinMarketCap below the 20-day EMA ($16.36), a drop to the 50-day SMA ($15.71) is possible.
Conversely, if the BNB/USD pair turns around from the current levels, a rally to $18.1377 is likely. Above this level, the pair is likely to pick up momentum and climb up to $21.50. Hence, this could offer a buying opportunity to the aggressive traders.
EOS has been trading in a tight range for the past few days. Both moving averages are flat and the RSI is just below the 50 level, which suggests a balance between buyers and sellers. However, this tight range trading is unlikely to continue for long.
EOS–USD daily chart. Source: Tradingview
If the bears sink the 9th-ranked cryptocurrency on CoinMarketCap below $2.50, a drop to $2.3314 is possible. A break below this support will be a huge negative as it will complete a bearish head and shoulders pattern, which has a target objective of $1.5524.
On the other hand, if the EOS/USD pair bounces off the current levels and breaks above $2.8319, it will suggest that the bulls have overpowered the bears and this could result in a rally to $3.1104.
Although the bulls had managed to push Tezos (XTZ) above the downtrend line today, they could not hold on to the higher levels, which is a negative sign. This suggests that demand dries up at higher levels.
XTZ–USD daily chart. Source: Tradingview
The bears might attempt to sink the 10th-ranked cryptocurrency on CoinMarketCap below the 20-day EMA ($2.63) and the support line of the ascending channel. If successful, a drop to $2.24 is possible.
Conversely, if the XTZ/USD pair bounces off the 20-day EMA, the bulls might make another attempt to carry the price above the downtrend line. If successful, a move to $3.07369 and then to $3.2712 is likely.
With strong moves in the past two days, Cardano (ADA) has made it to our list. The bulls broke above the downtrend line on May 18 and followed it up with another strong move on May 19.
ADA–USD daily chart. Source: Tradingview
Both moving averages are sloping up and the RSI is in the positive territory, which suggests that bulls have the upper hand. If the 11th-ranked cryptocurrency on CoinMarketCap can bounce off the downtrend line, the uptrend is likely to resume. The target objective on the upside is $0.0619885.
Conversely, if the bears sink the ADA/USD pair below the 20-day EMA ($0.050), it will signal weakness. Although the trend is up, the RSI has formed a bearish divergence, which warrants caution.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.