Altcoins are still recording losses in the weekly time frame as market participants wait for CPI reading on Wednesday, May 15, this week. The good news is that Bitcoin (BTC) has held its ground above a key support level, suggesting investors’ optimism in the big crypto.

As seen in the figure below, prices of the top-cap non-stablecoin cryptos went on a downward spiral in the course of last week resulting in significant losses over the last seven days. Most of these are proof-of-stake (PoS) altcoins such as Ethereum (ETH) which records the weekly losses at 6%. This is followed by Solana (SOL) which is down 5.6% over the last week.

Cardano (ADA) and XRP (XRO) are also trading in the red on the weekly timeframe, with 3.97% and 5.49% losses respectively over the same timeframe. Dogecoin (DOGE) experienced the brunt of last week’s sell-off dropping 12%, according to data from CoinMarketCap.

The largest cryptocurrencies by market capitalization, Bitcoin, has held out relatively well amidst the turmoil. The pioneer cryptocurrency is only down 2.57% over the last seven days and BNB has lost less than 0.15% over the same period.

Investors are likely to keep off in the short term due to the uncertain conditions. Bitcoin is likely to do well when the market conditions improve, as long as it holds out during this period.

Can Bulls Hold Bitcoin Price Above $25,000?

On April 30, Bitcoin dipped below the crucial support at $60,000, embraced by the middle boundary of the descending parallel channel. This implied that bears were aggressively defending this zone and wanted to flip it into resistance.

However, it should be remembered that repeated retests of a support level within short intervals tend to weaken it.

The downsloping moving averages and the downward trajectory taken by the relative strength index (RSI) indicate that bears are in control. The price strength at 48 suggests that there are more sellers than buyers in the market. Moreover, the hidden bearish divergence from the RSI supports the downside for BTC.

Therefore, if the support zone between $61,400 and $60,400 – where the 100-day EMS sits — is breached, the price of the flagship cryptocurrency may draw lower to the vital psychological level of $55,000, 11.5% from the current price. Market participants could expect BTC to take a breather here as buyers regroup to stage another recovery.

If bulls want to prevent further losses, they will have to quickly push the price above the supply area between $62,600 and $64,000. This is a stubborn resistance zone because that is where the 20-day EMA, the 50-day EMA, and the upper boundary of the channel lie.

Breaching this level would suggest intense buying at lower levels. Bitcoin may first rise to $70,000 and thereafter, make the much-awaited return to the all-time high of $73,835. Buyers will have to push the price above this level to indicate the beginning of a bull run.