Bitcoin successfully settles at $76,000, will it pause and then explode again?

▲ Bitcoin, Cryptocurrency ©

As the sell-off across the cryptocurrency market slows and volatility eases, leading cryptocurrencies are attempting to settle at specific support levels and taking a breather, while niche altcoins are collectively gaining momentum.

According to investment media FXStreet on May 20 (local time), Bitcoin (BTC) is currently stabilizing above the $76,000 mark as of Wednesday, and the total liquidation volume has decreased to less than $200 million over a 24-hour period. This represents a significant reduction in selling pressure compared to last Monday, when long position liquidations (bets on price increases) reached $563 million. According to CoinGlass data, the total liquidations in the past 24 hours amounted to $154 million, with long position liquidations accounting for $102 million, indicating that downward pressure has entered a calmer phase.

Currently, BTC is trading around $76,600 and maintains a moderate bearish trend in the short term. The current price is below the 50-day Exponential Moving Average (EMA) of $76,736 and the 200-day EMA of $82,978, indicating strong overhead resistance. Furthermore, the Relative Strength Index (RSI) is showing weakness around 44, and the Moving Average Convergence Divergence (MACD) remains in deep negative territory, suggesting a somewhat dampened short-term upward momentum. A full trend reversal is expected only after recovering key moving averages on a daily closing basis, with downside support formed around $70,875, the previous upward trend breakdown level.

While the leading cryptocurrency remains flat, tokens such as Venistoken (VVV), Lit (LIT), and Algorand (ALGO) are showing strong upward trends. VVV is maintaining a powerful uptrend, trading significantly above its 50-day EMA of $11.01 and 200-day EMA of $6.31. The RSI is in the mid-60s and MACD is holding in positive territory, indicating continued upward pressure. If it breaks through the trendline resistance of $20 in the future, it may enter a full price discovery phase. The initial support level is at $16.34.

Another surging altcoin, LIT, has continued its upward trend for three consecutive days and is testing the 100-day EMA at $1.16. If it successfully settles above $1.16 on a closing basis, further upside to $1.20, which is the 78.6% Fibonacci retracement level from its peak, is expected. The current RSI has entered the overbought zone, and the MACD signal line has turned upward, indicating increasing buying pressure. The main downside support is at the $1.05 level.

Finally, ALGO is defending the 50-day EMA at $0.1118 and is trading around $0.1165. However, it is blocked by the 200-day EMA resistance at $0.1243, and the long-term trend continues to be cautiously bearish. The RSI is rising to around 52, showing a gradual recovery in momentum, and the MACD's decline is narrowing, indicating that downward pressure itself is easing. For a definitive trend reversal, a daily close above the 200-day EMA of $0.1243 is required, and if the 50-day EMA breaks, it could face further selling pressure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*