Bitcoin course corrects significantly and ensures a bloody weekend

After several bullish weeks of trading, many Altcoins have to bow to the weakness of Bitcoin (BTC) and correct more significantly south in the last 48 hours of trading.

After several weeks of significant price increases, the market as a whole has to deal with another setback. Driven by new tweets from Elon Musk, Bitcoin is coming under significant pressure this Sunday evening and has dropped to a new multi-month low. This bearish price movement is also pulling the vast majority of Altcoins south. Since Bitcoin has recently lost significant market share, many Altcoins are still holding up relatively well and are falling less sharply than the crypto reserve currency. The tweets of the Tesla founder in the last few days have resulted in such sharp price drops, however, must be viewed critically. Some of his contributions could presumably call the SEC in the US on account of possible market manipulation.

Best price development among the top 10 altcoins:

Cardano (ADA)

Price analysis based on the value pair ADA / USD on Bittrex

Cardano stands out positively this week and is the only crypto currency among the top 10 to record a price increase. Investors took advantage of the temporary price weakness yesterday, Sunday, May 16, for further purchases in the area of ​​the USD 2.00 mark.

Bullish variant (Cardano)

Cardano’s course can be described as bullish without a doubt. While the vast majority of Altcoins corrected significantly in some cases, the ADA rate was largely unimpressed. As long as ADA ranks above USD 1.80 and rises back above the 161 Fibonacci extension at USD 2.25, the view will continue to be directed upwards. If Cardano manages to stabilize above USD 2.25 per day’s closing price, an increase to the all-time high of USD 2.46 should be planned. In the short term, the ADA price will try to hit the next price target at $ 2.77. The 200 Fibonacci extension runs at this resistance level. However, only when the Bitcoin exchange rate stabilizes and rises again towards USD 50,000, Cardano can pick up speed and march through to USD 3.63.

The 261 Fibonacci extension of the current trend movement runs here. Starting from the weekly low, a rally of 140 percentage points is therefore conceivable. Investors should reap gains at $ 3.63. In order to target the medium-term price target of USD 5.01, the market as a whole must also gain more momentum again. If the bulls manage to gradually lift ADA’s course northwards in the coming months and also break through the 361 Fibonacci extension, the maximum price target will be activated in the form of the 461 Fibonacci extension. The USD 6.40 mark should therefore be viewed as the maximum bullish price target.

Bearish variant (Cardano)

The ADA rate also corrected by 17 percentage points in the meantime, but the bears did not manage to break through the initial support in the USD 2.00 area. Only when the USD 2.00 and subsequently also USD 1.81 are sustainably undercut, the consolidation could expand into the green support zone. However, from the current perspective, a false breakout on the upper side still seems unlikely. The EMA50 (orange) is currently in the range between USD 1.55 and USD 1.45. Should the bears manage to dynamically undercut this support, a relapse of up to USD 1.40 should be planned. Such a price correction should attract new buyers. The supertrend is currently running at USD 1.39 in the daily chart, which also has a holding effect.

However, if this support level is also broken sustainably, the corrective movement will expand into the zone between USD 1.25 and USD 1.19. This is where the low of May 4, 2021 is found. If Cardano gives up USD 1.19, USD 1.10 comes into focus below this price mark. This is where the 78 Fibonacci retracement can be found. Only when Bitcoin sustained the 40,000 USD and breaks away in the direction of 35,000 USD, Cardano could also head for the 1.02 USD again. The orange support area has always been the linchpin in the sideways movement of the last 10 weeks of trading. Strong resistance from the bull camp can therefore be expected no later than the lower edge at USD 0.93. Since the EMA200 (blue) also runs just below, this area is to be seen as the maximum bearish price target for the time being.

Indicators (Cardano)

Both the RSI and the MACD indicator continue to have long signals active. Since the weekly chart continues to send positive signals, the bullish scenario can be seen as much more likely.

Worst price development among the top 10 altcoins:

Litecoin (LTC):

Price analysis based on the value pair LTC / USD on Binance

After Litecoin hit a new all-time high at USD 413 in the previous week, investors increasingly took profits and subsequently caused a false breakout from the trend channel. The LTC price slipped back below the 2018 all-time high of USD 367 and fell significantly in the current trading week. Litecoin fell to a new 14-day low at USD 262 this Monday morning, but is currently able to recover and is trading just above the pink support area.

Bullish variant (Litecoin)

If the LTC rate can stabilize and quickly rise back above the EMA20 (red) at USD 309, a renewed upward movement can be expected. Special attention should be paid to the orange support area between $ 333 and $ 343. Only when this zone is overcome by the daily closing price is a rise to 367 USD likely. If the bulls can then heave the LTC price back up out of the trend channel, a new test of the all-time high is conceivable. The upper Bollinger Band is also currently running at USD 413. If this resistance level breaks dynamically, the first important price target in the form of the 361 Fibonacci extension at USD 460 comes into focus. Since Litecoin, as the little brother of BTC, has a higher correlation than other cryptocurrencies, an increase in the 461 Fibonacci extension can only be planned with the help of Bitcoin. Therefore, USD 580 is still to be seen as the maximum price target.

Bearish variant (Litecoin)

If the LTC price cannot rise back above USD 309 and bounces down at USD 314 at the latest, Litecoin will target USD 265 again. The 200 Fibonacci extension runs here. If this chart mark is undercut sustainably, a directional decision will be made at USD 250. The bulls must therefore defend the cross resistance from the supertrend, the old high from February 20 and the lower edge of the trend channel. If the bears manage to break this support level and the USD 230 does not stop there, the first bearish price target at USD 218 comes into focus.

This is where the 161 Fibonacci extension and the lower Bollinger band run. A sustained price weakness could even push the LTC price down to the selling low of April 23 at USD 208 for a short time. If the overall market continues to trend weakly, a price decline to the maximum bearish price target of USD 190 cannot be ruled out. In addition to the 138 Fibonacci extension, the EMA200 (blue) also runs on this cross support. A break in this price level is not to be expected in the short term. The bulls will do whatever it takes to defend the $ 190.

Indicators (Litecoin)

The RSI indicator has plunged back into the neutral zone in the last few days of trading. Since the MACD indicator also generated a sell signal, the prospects for Litecoin have currently clouded over. Looking at the weekly chart, both indicators still have a buy signal despite a falling trend. Bullish investors should, however, wait until the RSI indicator breaks above 55 again on the daily chart.

Top 10 stability

The significant collapse of the Bitcoin price also ensures profit-taking for most of the other major crypto currencies. Interestingly, all of the top 10 altcoins lose less value than Bitcoin itself. Only Litecoin (LTC), as a weekly loser, also corrects significantly more than 20 percent. Bitcoin Cash (BCH) and Binance Coin (BNB) also lose around 16 percent of their value. On the other hand, Cardano (ADA) can leave all other top 10 altcoins behind with a price increase of 20 percent. In addition to Cardano, Ripple (XRP) and Dogecoin (DOGE) can also resist the downward trend and correct only 5 percentage points. The clear price movements also have several effects on the ranking. Cardano changes places with Ripple and rises to fourth place. Furthermore, Uniswap can climb back into the top 10 after a week of abstinence and displace Chainlink (LINK) again from the ranking of the ten largest cryptocurrencies.

Winner and Loser of the Week

The top 100 Altcoins this week can be clearly differentiated into outperformers and underperformers. Although only around 25 percent of Altcoins can escape the bearish tendency of Bitcoin, with Polygon (MATIC) and Cardano (ADA) two top 20 projects can increase significantly in value. The Layer2 solution Polygon, which makes it possible to drastically reduce the high transfer costs in the Ethereum network, increases in value by around 70 percent. Kusama (KSM) and yearn.finance (YFI) are also friendly after a long dry spell and shoot 30 percentage points north.

Despite the weakness in the overall market, 12 top 100 Altcoins are increasing in value by double digits. The long list of weekly losers is headed by QTUM (QTUM) and Fantom (FTM), each with a 32 percent drop in price. Filecoin (FIL) and Siacoin (SC) also show a significant price discount at 29 percent. Almost 25 top 100 altcoins lose more than 20 percent of their value. After three bullish weeks of trading, the significant price weakness of the crypto key currency Bitcoin caused above-average price corrections on the overall market.

Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are only an assessment of the analyst.

The chart images were created using TradingView created.

USD / EUR exchange rate at the time of going to press: 0.82 euros.