Highlights:
Bitcoin and a number of altcoins have rebounded from their lows on Friday, though they may face significant resistance at higher levels from sellers.
The price of BTC and some altcoins might experience sideways movement for several days.
The US stock markets, Bitcoin (BTC), and altcoins are attempting to recover from steep declines experienced last Friday after US President Donald Trump’s announcement of a 100% tariff on China.
The drop was severe, leading to around $20 billion in liquidations over 24 hours, as reported by CoinGlass. Many traders using high leverage, without proper risk management, likely faced major losses.
This has eliminated some excess from the market, allowing more robust long-term investors to buy in during dips. While the rebound is underway, a significant rally may take some time to materialize.
Economist Timothy Peterson shared with Cointelegraph on Sunday that BTC may enter a “cooling-off phase” lasting three to four weeks before resuming its upward trend, albeit “at a slower pace than previously seen.”
Will BTC and altcoins continue to build on this recovery, or will higher price levels draw in sellers? Let’s examine the charts of the top 10 cryptocurrencies to find out.
S&P 500 Index Price Outlook
The S&P 500 Index (SPX) sharply declined and fell below the 20-day exponential moving average (6,652) on Friday, indicating that traders are taking profits.
Bulls responded by buying the dip to the 50-day simple moving average (SMA) (6,538), pushing the price back to the 20-day exponential moving average (EMA). If the price sharply declines from the 20-day EMA, bears will likely attempt to drive the index below the 50-day SMA. A successful test could lead to a deeper correction towards 6,350 and subsequently 6,200.
Conversely, if the price manages to close above the 20-day EMA, this could indicate that the correction is over, and the index may attempt to retest its all-time high of 6,764.
US Dollar Index Price Outlook
The US Dollar Index (DXY) closed above its moving averages on Tuesday, indicating a weakening grip by bears.
Bulls pushed the price above the downtrend line on Thursday but have struggled to build on this breakout. Sellers may attempt to push the price below the 20-day EMA (98.26), a key short-term level to monitor.
A strong rebound from the 20-day EMA could raise the chances of a breakout above 100.50, potentially pushing the index to around 102.
On the other hand, a close below the moving averages would indicate a market rejection of the breakout above the downtrend line, risking a decline to the 97 level and further to significant support at 96.21.
Bitcoin Price Outlook
Sellers were unable to finalize a double-top pattern in BTC as they did not achieve a close below the $107,000 support level.
The Bitcoin price dropped to $102,000 on Friday but quickly rebounded, showing demand at lower levels. The BTC/USDT pair is likely to encounter selling pressure at the 61.8% Fibonacci retracement level of $116,955.
However, if buyers manage to overcome this resistance, the pair could surge to $121,020 and eventually to the all-time high of $126,199.
If the price sharply declines from the current level, it is expected to find support at $109,500 and then at $107,000. Buyers are anticipated to vigorously defend the $107,000 level, as a fall below it raises the risk of a drop beneath $100,000.
Ether Price Outlook
Sellers managed to pull Ether (ETH) below the descending channel pattern on Friday and Saturday but were unable to maintain those lower prices.
Ether’s price climbed back into the channel on Sunday, indicating solid demand at lower levels. If the price sharply falls from the moving averages, bears will once again attempt to pull the ETH/USDT pair below the channel. Success here could suggest a near-term top.
On the contrary, if the price breaks above the moving averages, it signals a likelihood of the pair remaining within the channel for an extended period. Closing above the resistance line would improve the chances of an uptrend resuming.
BNB Price Outlook
BNB (BNB) has shown considerable volatility in recent days. Bears pushed the price below the 20-day EMA ($1,145) on Friday, but bulls regained that level on Saturday.
This suggests a positive sentiment where dips are viewed as buying opportunities. The BNB price surged to a new all-time high of $1,375 on Monday, but bulls seem to be having difficulty maintaining those levels, indicating selling on rallies.
Bears will attempt to strengthen their position by pushing the price back below the 20-day EMA. Should they succeed, it might signal a short-term peak.
Conversely, if the price rises and closes above $1,350, it indicates that bulls are still in control, with the BNB/USDT pair potentially rallying to $1,609.
XRP Price Outlook
XRP (XRP) completed a bearish descending triangle setup on Friday, dropping well below the target of $1.72.
A slight positive note is that XRP’s price bounced back from the $1.25 low, indicating aggressive buying at lower levels. The relief rally is anticipated to reach the 20-day EMA ($2.77), where selling pressure is expected. If the price declines from this point, the XRP/USDT pair could retreat to $2.20 and then to $2.
Bulls need to push the price above the downtrend line to signal a recovery. Until then, rallies are likely to be sold off.
Solana Price Outlook
Solana (SOL) fell below the ascending channel pattern on Friday, indicating sellers are attempting to gain control.
However, buyers remained active, purchasing the dip to $168, which initiated a strong recovery on Sunday, moving the SOL/USDT pair back to the breakdown level from the channel.
Related: XRP rebounds 66% from price crash, regaining $75B in market value
If the price declines and breaks below $168, it would indicate a negative shift in sentiment, increasing the likelihood of a drop to $155.
Bulls will re-enter if they manage to push Solana’s price above the moving averages, with potential for a rally towards resistance at $260.
Dogecoin Price Outlook
Sellers dragged Dogecoin (DOGE) below the $0.14 support level on Friday but could not close below it.
Dogecoin’s price sharply rebounded and re-entered the broader $0.14 to $0.29 range. Bulls will attempt to push the price to the 20-day EMA ($0.23), which may attract sellers. If the price drops below the 20-day EMA, the DOGE/USDT pair might decline to $0.18 and then to $0.16.
The next significant move may commence following a close above $0.29 or below $0.14. Until then, the pair will likely fluctuate within this range.
Cardano Price Outlook
Cardano (ADA) fell below the descending channel pattern on Friday and dropped to a panic low of $0.27.
Lower levels attracted strong buying from bulls, who have driven the price back to the breakdown level of the channel. Sellers are poised to pose significant resistance in the area between the support line and the 20-day EMA ($0.78).
Should the Cardano price sharply retreat from the resistance zone, it would indicate that bears continue to hold the upper hand, potentially pushing the ADA/USDT pair down to $0.60 and ultimately to $0.50.
This negative outlook would be challenged in the near term if the price continues to rise and breaks above the resistance line.
Hyperliquid Price Outlook
Hyperliquid (HYPE) completed a head-and-shoulders pattern on Friday, resulting in a drop to its target of $21.
Strong buying at lower levels has brought the price back to the neckline of the H&S pattern, where bears are anticipated to put up a strong defense. If the price drops from the neckline, sellers might attempt to drive the HYPE/USDT pair below the $35.50 support. Should that occur, the Hyperliquid price could fall to $30.50.
On the other hand, buyers will likely aim to push the price above the moving averages, indicating that the corrective phase could be concluding.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any decisions.
