Bitcoin, Litecoin and Polkadot shake off part of recent losses ahead of the weekend
The crypto market suffered heavy losses this week, with Bitcoin falling back below the $50,000 mark for the first time in weeks. Comments from high-profile figures may have contributed to the sell-off. Still, Bitcoin, Litecoin and Polkadot are all showing signs of recovery ahead of the weekend and could reclaim some of the value they lost before the new week begins.
#Bitcoin doesn’t need Elon, but he’s still investing.
No point in shooting him down, he still owns billions of #Bitcoin and sees the future.
Therefore, I think we’re quite close to a bottom and the escalated sentiment is unnecessary.
— Michaël van de Poppe (@CryptoMichNL) May 14, 2021
BTC price outlook
Bitcoin remains the dominant cryptocurrency despite the steep losses this week, which amount to roughly a 10% decline over the past seven days. The BTC/USD 4-hour chart shows a tentative recovery after a move into the $50,000 region.
BTC/USD 4-hour price chart. Source: Coinalyze
If this positive momentum continues, Bitcoin could test its 100-day simple moving average near $55,864. To have a realistic chance of reaching the mid-$50,000s, BTC must first break above the psychological resistance near $51,000. Failure to build and sustain upward momentum would allow bears to regain control and could push Bitcoin down toward support around $48,550. Bulls will need to defend that level unless another large-scale sell-off occurs.
LTC price outlook
Litecoin’s technical indicators—such as the MACD and RSI—remain biased toward the bearish side. Over the past 24 hours LTC has shown only modest gains of under 1% against the USD. For Litecoin to reclaim recent losses and attempt to reach the weekly high near $413, LTC/USD must overcome resistance around $331.
LTC/USD 4-hour price chart. Source: Coinalyze
Currently Litecoin trades above its 100-day SMA at roughly $316. However, in the event of a broader market sell-off, LTC could slip below $316 and move toward the $307 area. Litecoin will likely need support from the wider market to shake off bearish sentiment this weekend.
DOT price outlook
Of the three, Polkadot appears the most bullish heading into the weekend. DOT has gained about 8% versus the USD over the past 24 hours, erasing a large portion of its recent losses. If buyers remain in control, DOT/USD could soon overcome the psychological $43 level and even test the $45 threshold.
DOT/USD 4-hour price chart. Source: Coinalyze
Should a market-wide sell-off return, DOT/USD could fall below $39. A further bearish trend would put pressure on bulls to defend the key support area around $37.