After the sharp drop on April 11, Bitcoin (BTC), and other altcoins, are trying to recover. Glassnode’s weekly report shows that Bitcoin has seen a modest volume of profit-taking from investors since mid-February, which could be “bearing sufficient headwinds to price.”
Some investors are making profits while the Luna Foundation Guard, a non-profit organization attached to Blockchain protocol Terra has been growing its Bitcoin stockpile. Terra added 2,508 Bitcoin to its total holdings on April 13, just short of Tesla’s corporate Treasury at 43,200 Bitcoin.
Everyday cryptocurrency market performance. Source: Coin360
Larger investors don’t seem to be affected by volatility or sharp drops in cryptocurrency and instead take a longer-term perspective. Pantera Blockchain Fund, originally set up to raise $600,000,000, has now amassed $1.3 billion. This is a huge demand.
Will the bulls be able sustain the rise in Bitcoin and other altcoins. Let’s look at the charts for the top 10 cryptocurrencies to see how they compare.
The psychological level of $40,000 was breached by Bitcoin on April 11. However, the bears were unable to build on this momentum. This means that bulls are purchasing at lower levels.
Daily chart of BTC/USDT Source: TradingView
The 20-day exponential moving mean ($42,967) could be the limit of the relief rally. This resistance will indicate that bears are selling rallies if the price falls below it. A minor advantage for sellers is indicated by the downsloping 20 day EMA and relative strength index (RSI), both below 44.
To halt the decline, the bears must bring the price down below $39,000. The BTC/USDT price could drop to the support level of the ascending channel. The reverse could happen. If the price rises above the 20-day EMA the pair could test the overhead resistance of $45,400.
Bulls are trying to stop the fall at the 50-day simple move average ($2,958). Ether (ETH), a cryptocurrency, attempted a rebound on April 12. However, the buyers were unable to sustain higher levels.
Daily chart of ETH/USDT Source: TradingView
Today’s relief rally is being extended by the bulls. The 20-day EMA ($3,172) is likely to be sold. The probability of the price falling below the 50-day SMA is increased if the price falls below this level. The ETH/USDT exchange pair could fall to the uptrend line if that happens.
Contrary to popular belief, a price break above the 20-day EMA will signal aggressive bulls buying. The pair may then attempt to rally to the 200 day SMA ($3,490). For a few days, the pair could consolidate between the 50 day SMA and 200-day SMA.
Binance Coin (BNB), which plunged below the 50 day SMA ($402) April 11, was not able to capitalize by the bears. Bulls bought the dip aggressively, pushing the price above the 50-day SMA in April 12.
Daily chart BNB/USDT TradingView
The buyers want to push the price higher than the 20-day EMA ($420) and keep it there. The BNB/USDT pair may rally to the 200 day SMA ($470), where bears could mount strong resistance. This could help keep the price within the range of the 200-day SMA to the 50-day SMA for just a few more days.
If the price does not hold above the 20-day EMA it will signal that the bears are selling at higher levels. The bears will attempt to lower the price below $391, which is the immediate support. The pair could fall to $350 if they succeed.
Solana (SOL), bounced off the 50 day SMA ($99) April 12, but the bulls couldn’t push the price higher than the 20-day EMA ($110). This indicates that bears are buying rallies to reach the 20-day EMA.
Daily chart of SOL/USDT Source: TradingView
Now, the bears will attempt to lower the price and keep it below the 50-day SMA. The SOL/USDT pair may drop to $81. If they succeed, This level is expected to be defended by the bulls as a possible break or close below could trigger a downtrend.
Contrary to the assumption, if the price goes up from its current level and exceeds the 20-day EMA then the bulls will attempt to clear the overhead hurdle at $122.
The strong support of $0.69 on April 12 was broken by Ripple (XRP), but the bulls couldn’t sustain the recovery. This suggests that bears are active at higher levels. Today’s inside-day candlestick pattern suggests indecision between the bears and bulls.
Daily chart of XRP/USDT Source: TradingView
The 20-day EMA ($0.77) has been sloping downward and the RSI is close to 39. This suggests that the path of least resistance will be towards the downside. Selling could gain momentum if the price falls below $0.69. The XRP/USDT exchange rate could fall to $0.62.
If the price moves up, it will try to climb above the 50-day SMA ($0.78). It will indicate that the pair could trade in a wide range of $0.69 to $0.91 for a longer time.
Cardano (ADA), attempted a relief rally April 12, but the bulls couldn’t clear the psychological barrier at $1. This suggests that bears are trying to turn the $1 level into resistance.
Daily chart ADA/USDT Source: TradingView
The correction could be resumed if the price falls below $0.91 and the overhead resistance again. The ADA/USDT currency pair could drop to $0.86, and then to $0.74. The 20-day EMA ($1.04) has been dropping and the RSI is in negative territory, which suggests a favorable outcome for bears.
If the price rises and breaks above 20-day EMA, this negative view will be invalidated. This could lead to a rally towards the overhead resistance at $1.26.
Terra’s LUNA token made an inside-day candlestick design on April 12, but the long wick of the day’s candlestick indicates that bears were being sold at higher prices. The buyers are trying to extend today’s recovery, which is a minor plus.
Daily chart of LUNA/USDT Source: TradingView
Bulls pushing the price higher than $89 could cause the LUNA/USDT pairs to rise to the $20-day EMA ($96), where bears will likely mount a strong resistance. A downsloping 20 day EMA and a negative RSI indicate a selling advantage.
The overhead resistance could be broken below $80 and the correction could continue. If that happens, the pair may slide back to $75.
Alternatively, if price moves up above the 20-day EMA then the pair could rally to $104.
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Bulls are trying to stop the fall in Avalanche, (AVAX), at the uptrendline. However, the bounce will likely encounter strong resistance from bears near the moving Averages.
Daily chart of AVAX/USDT Source: TradingView
The possibility of the price breaking below the moving averages in the next few days increases. The AVAX/USDT pair may fall to $65.
As the bulls have successfully defended this level on two occasions, it is likely that this level will act as a strong support. If it is strong, the pair could trade within the range of $65 to $99 for a few days more.
A break and close below $65 could increase selling, and the pair might drop to $51.
Polkadot, (DOT), is trying to recover from the sharp fall of April 11. This suggests that you should buy at lower levels. The bears will likely resist the bulls at higher levels.
Daily chart of DOT/USDT Source: TradingView
The bears will attempt to lower the DOT/USDT currency pair below $16 if the price does not rise above $19 as the overhead resistance. The decline could reach $14 if they succeed. The RSI in negative territory and the downsloping 20 day EMA ($19), indicate that the path to the downside is the most likely.
Alternativly, if the price rises rapidly and breaks above 20-day EMA it could indicate accumulation at lower levels. For a few days, the pair could consolidate within the range of $16 to $23.
Although the buyers are trying to defend the 50 day SMA ($0.13), the weak rebound from the strong support suggests that there is not enough buyers for Dogecoin at higher levels. This raises the chance of a break below 50-day SMA.
Daily chart of DOGE/USDT Source: TradingView
The sellers will try to prolong the fall by pulling the DOGE/USDT price below the 50-day SMA if the price does not sustain above $0.14. The pair could fall to $0.12, then drop to critical support at $0.10.
Contrary to the assumption, strong buying at the 50 day SMA will be recommended if the price rises sharply above $0.15. For a few days, the pair could remain between the 200-day SMA ($0.18) or the 50-day SMA.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.