Weekly Analysis of BTC, ETH, and Altcoin Markets, May 13, 2024
An overview of BTC, ETH, SOL, MATIC, ATOM, XLM charts, and the current cryptocurrency market dynamics.
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Bitcoin (BTC)
Bitcoin is currently trading around the $63,000 mark, continuing to experience medium-term sideways movement bounded by a support zone of $59,500–$61,800 and a resistance zone of $65,800–$68,000. This range is crucial for the continuation of the upward trend.
Should buyers manage to secure a position above the $68,000 mark, BTC could be on its way to test the resistance levels of $71,000–$72,700, potentially approaching or even surpassing its all-time high.
Conversely, if the price dips below $60,000, the coin may revisit the buyer's zone at $54,500–$57,000.
BTC H4 Chart
Ethereum (ETH)
Ethereum shows a substantial correlation with Bitcoin's price movements. It is currently positioned between the support zone of $2,800–$2,980 and the resistance zone of $3,240–$3,360.
Ethereum is testing this buyer's range and a positive response might initiate a rise, targeting new local highs. The next resistance level in this uptrend is projected at $3,512.
If the market turns bearish, Ethereum could fall to the $2,480–$2,620 range.
ETH H4 Chart
Solana (SOL)
Solana's trading activity is caught between a support zone of $116–$130 and a resistance zone of $162–$172.
Solana's future price movement is largely dependent on Bitcoin’s trajectory. In a favorable market scenario, SOL could accelerate its growth towards the local high of $210.
If the market correction deepens, Solana might test the support level at $105 and potentially near the psychological buying threshold of $100.
SOL H4 Chart
Polygon (MATIC)
The price of MATIC is currently confined to a narrow range, supported at $0.62–$0.67 and capped by a resistance zone at $0.74–$0.78. Polygon is clearly on a downward trend, regularly reaching new local lows.
If conditions do not improve significantly, the coin could revisit its local low of $0.58, recorded on April 13, and continue its bearish movement.
The likelihood of a bullish trend seems remote unless MATIC can breach the range of $0.83–$0.88, which would indicate a resurgence in buying pressure.
MATIC H4 Chart
Cosmos (ATOM)
ATOM is currently exhibiting sideways trading between a support zone of $7.54–$8.15 and a resistance zone of $9.70–$10.35, with a noteworthy intermediate seller's level at $8.66. A market reaction at this level could occur soon.
Should Bitcoin experience an uptrend, Cosmos has the potential to surpass the $10.81 mark, propelling it into an upward trajectory. Conversely, a downturn in BTC might lead ATOM to test lower boundaries again, possibly revisiting or establishing new lows on its chart.
ATOM H4 Chart
Stellar (XLM)
Stellar has seen a 40% correction since March 11, 2024, and is currently hovering near a buyer's zone of $0.101–$0.107. The most likely scenario appears to be a continuation of the downward trend. If this scenario unfolds, XLM could soon hit a new local low below the $0.09 mark and continue to decline.
A bullish reversal could only begin with significant buying activity and increased trading volumes, potentially testing the resistance zone of $0.118–$0.124 and targeting the $0.129 seller level. However, this scenario currently appears highly improbable.
XLM H4 Chart
BTC Dominance, Altcoin Season Index, and Fear and Greed Index
Over the past week, the Bitcoin dominance index has remained relatively unchanged at 55.22%. Investors continue to favor Bitcoin over alternative cryptocurrencies.
BTC Dominance Index. Source: tradingview.com
The Altcoin Season Index stands at 41, reinforcing the lukewarm interest in altcoins among traders and maintaining the primary focus on Bitcoin. This dynamic could shift if Bitcoin reaches new highs, potentially redirecting liquidity to other cryptocurrencies.
Altcoin Season Index. Source: blockchaincenter.net
The Fear and Greed Index is at 57 points, indicating a sentiment of “Greed.” This suggests that cryptocurrencies remain attractive for investment to the majority of investors. However, just a week ago, the index dropped to 43 points, which categorized it as “Fear.” This change highlights that during times of high volatility and market corrections, investors begin to doubt the advisability of investing in cryptocurrencies.
Fear and Greed Index. Source: coinstats.app
Economic News
This week will see the release of key macroeconomic indicators, including:
- The U.S. Producer Price Index and a speech by Fed Chair Jerome Powell (Tuesday, May 14);
- Updates on the U.S. Consumer Price Index, which tracks inflation levels, along with crude oil inventories and retail sales volumes (Wednesday, May 15);
- The number of initial jobless claims (Thursday, May 16).
These events could influence the overall crypto market dynamics and are likely to increase volatility during their announcement. Traders should remain vigilant during these times.
Check out The Coinomist for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from The Coinomist:
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