Price analysis 5/13: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, BCH, LTC, UNI

Tesla CEO Elon Musk tweeted on May 13 that the company will stop accepting Bitcoin (BTC) payments for its vehicle purchases, citing “rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal.”  Shortly after the announcement, Bitcoin price dropped by 17% to hit a new local low at $46,000.

While Musk’s decision is a short-term blow to the sentiment of the market, it is unlikely to change the course of the crypto markets altogether because the institutional demand for cryptocurrencies remains high. Proof of this came yesterday as Cowen Inc., a 103-year-old bank, announced that it had partnered with Standard Custody and Trust Co. to enter the crypto custody business.

Daily cryptocurrency market performance. Source: Coin360

Another indication of increasing institutional interest in crypto is the sharp rise in “crypto under the custody” of Gemini crypto exchange. The Winklevoss twins’ led exchange now has $30 billion worth of crypto under custody.

The long-term picture for cryptocurrencies remains strong but the short-term price fluctuations may cause large drawdowns to portfolios. Hence, traders should watch the price action closely and follow their trading rules without getting sucked into trades driven by emotions.

Let’s analyze the charts of the top-10 cryptocurrencies to determine the trends and the path of least resistance for the next move.