Bitcoin Eyes Support, Ethereum's Rebound Potential, Polkadot's Resilience: Crypto Market Update May 2

Crypto market dips 3%, Bitcoin eyes support levels, Ethereum in potential rebound, Polkadot stays strong, DogWifHat cautiously optimistic.
Bitcoin Eyes Support, Ethereum's Rebound Potential, Polkadot's Resilience: Crypto Market Update May 2

Key Insights

  • The crypto market is experiencing a downturn, with the total market cap falling 3% to $2.15 trillion.

  • Bitcoin is struggling and could fall further to retest support levels around $52,800 or $50,000.

  • Ethereum is finding support at its 25-week moving average and could rebound within a falling wedge formation.

  • Polkadot is showing resilience due to a long-term uptrend but wait for a break above $7.236 before buying.

  • DogWifHat might be recovering but wait for a confirmatory break above $2.86 before investing.

The crypto market has taken another step back over the last day, especially with the large-cap altcoin market.

This decline is mostly attributed to the latest FOMC decision to leave US Interest Rates unchanged, rather than increase them—which should be a good thing.

<div class="paragraphs"><p>The US FED rate cuts</p></div>

The US FED rate cuts

However, the crypto community expected rate cuts instead, causing a decline in Bitcoin and giving the altcoins a chance to shine.

So far, the total crypto market cap has taken another dive down to $2.15 trillion, after declining by another 3% over the last day.

<div class="paragraphs"><p>The crypto market heatmap</p></div>

The crypto market heatmap

We can see from the snapshot above, that the crypto market is starting to repair itself from the ground up, with the only cryptocurrencies remaining red being Bitcoin, Ethereum and some of the other top 100 cryptocurrencies.

In terms of liquidations, we have seen around $360 million taken from leveraged traders over the last day, as shown by the snapshot below:

<div class="paragraphs"><p>The crypto market’s liquidations</p></div>

The crypto market’s liquidations

As expected, the lion’s share of these liquidations came from the bulls, with this cohort losing around $257 million in the last 24 hours, and the bears coming in with around $102 million worth of liquidations.

At the end of it all, the bulls have failed to retake control again today, and the market in general, remains under bearish control despite the altcoin success.

Is This a Bottom for Bitcoin?

As shown by the chart below, Bitcoin’s decline to $56,500 is starting to slow down.

This decline in bearish strength may have been due to support from the 25-week moving average (red line) shown below, as well as the multi-year ascending trendline that seems ready to catch Bitcoin somewhere around $52,800.

<div class="paragraphs"><p>Bitcoin’s price action</p></div>

Bitcoin’s price action

The chart above shows us quite a few things.

The first is that further decline is entirely possible, and could see Bitcoin retest anywhere between $52,800 and $50,000.

The second is that the bulls need to give it all they've got because a break below this $50,000 zone would result in a decline straight down to the next support around $35,000.

In all, the bulls need to give things all they've got between here ($57,800) and the $50,000 zone, to avoid a total bearish takeover.

Can Ethereum Save Itself?

What we can see here in Ethereum’s price chart is that the bears have successfully pushed the cryptocurrency into a retest of the lower support of this falling wedge shown below.

<div class="paragraphs"><p>Ethereum’s price performance</p></div>

Ethereum’s price performance

Can Ethereum break below this formation and trend lower?

We’d say no, and here’s why.

Ethereum’s current price level ($2,900) is sitting right on top of the 25-week moving average, which Ethereum has been on top of since October 2023.

This means that Ethereum is likely to stay within this falling wedge formation and attempt climbing upwards from here.

However, if we do see a break below $2,700, the resulting dip may turn out to be a devastating one.

Polkadot’s Time to Shine?

According to the charts, Polkadot has shown remarkable resilience so far, even in the face of Bitcoin’s decline.

The reason for this resilience as shown below, is the multi-month ascending trendline that has been supporting the cryptocurrency since November 2023

<div class="paragraphs"><p>Polkadot about to &nbsp;trigger a rally</p></div>

Polkadot about to  trigger a rally

Polkadot is currently in one of the most epic rebounds from here and is already making waves with a 6.3% intra-day price increase.

However, it may not be time to jump in yet.

Investors should wait for a trigger, which would be a break above Polkadot’s medium-term moving average, which currently sits at around $7.236.

A DogWifHat Comeback?

DogWifHat is currently showing signs of a comeback, as illustrated in the chart below.

The memecoin currently sits on top of an ascending trendline, and the bulls may currently be attempting to stage a rebound from $2.27.

<div class="paragraphs"><p>WIF’s price action</p></div>

WIF’s price action

However, just as it is with Polkadot, patience is a virtue.

Investors should wait for a WIF trigger which will only come after a break above $2.86.

Conversely, if we see a break below $2.27 for any reason, this constitutes a lower low, and further decline may follow.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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