The U.S. dollar (DXY), which has exceeded the March 2020 highs, may challenge the multi-year highs of January 2017. The price movement of Bitcoin (BTC), is usually inverted to DXY. A strong recovery in Bitcoin could be difficult if the dollar does not reverse its sharp uptrend.
While Bitcoin is not at a bottom yet, institutional investors appear to have begun their purchases at lower levels. According to Coinglass data analytics platform, Canada’s Purpose bitcoin exchange-traded fund has added 1,132 BTC. Santiment, a behavior analytics resource, also indicated that the crowd’s interest was at its highest for six weeks.
Everyday cryptocurrency market performance. Source: Coin360
Although the crypto sector has been under severe pressure in 2022, this has not affected venture capital (VC) activity across different blockchain sectors. The first quarter 2022 saw VC investments in the blockchain sector exceeding $14.6 billion. This represents 48% of all VC investments in 2021. This highlights the industry’s long-term potential for growth.
Is it possible that Bitcoin and altcoins could start to recover from their respective support levels. Let’s look at the charts of the top 10 cryptocurrencies to see if we can find out.
The 20-day exponential moving mean (EMA) of Bitcoin on April 26 stalled, suggesting that traders are still selling on rallies and the sentiment is negative. The price rebounded from the support line for the ascending channel’s April 27th, which indicates that bulls are trying to defend this level.
Daily chart of BTC/USDT Source: TradingView
If the bounce continues, bulls will attempt to push the price higher than the 20-day EMA (S42,038) and the 50-day simplemoving average (SMA (S42,038). It will be a sign that the BTC/USDT pairing could stay within the channel for several more days if they succeed.
If the price falls below the channel and the current level, or the 20-day EMA, it will indicate that bears are in charge. This could lead to a slide to $34,300 or later to $32,917.
Ether (ETH), once again fell below the 20-day EMA ($3,014) April 26, indicating that bears are continuing to sell rallies to this level. The bears will attempt to bring the price back to the uptrend.
Daily chart of ETH/USDT Source: TradingView
The ETH/USDT price could fall to $2,450 if bears lower the price below its uptrend line. If the bulls fail to stop the fall at this level, selling could accelerate, and the pair could drop to $2159.
If the price goes up, buyers may make another attempt to push the pair over the 20-day EMA. The pair could reach $3,200 if they succeed, and then attempt a move to the 200-day SMA ($3,470).
BNB closed below $391 as the immediate support on April 26, which indicates near-term weakness. The bulls are trying to push the price above the breakdown level.
Daily chart BNB/USDT TradingView
The price could reach the 20-day EMA ($408) if they succeed. This resistance is important to watch because bulls could overcome it and raise the BNB/USDT to $431, then attempt a rally up to $460.
Contrary to the assumption, bears could flip the $391 level into resistance. The BNB/USDT pairing could resume its downtrend, and drop towards the strong support at $350. The RSI in negative zone and the downsloping 20 day EMA indicate that the path to the downside is the most likely.
The April 25 candlestick of Ripple (XRP) shows that there has been strong buying at lower levels. The bulls were unable to sustain the price above $0.70 by April 26, which led to another sell-off.
Daily chart of XRP/USDT Source: TradingView
The bears are ahead due to the downsloping 20 day EMA ($0.72) as well as the RSI close to the oversold area. The XRP/USDT pairing could fall to $0.55 if the price falls below $0.62 as immediate support.
Contrary to what is being assumed, bulls will attempt to push the pair higher than the breakeven point at $0.69 if the price rebounded from the current level. The pair could reach the 50-day SMA ($0.77) if they succeed.
For the past two days, the bulls have been defending a support line for the ascending channel but they haven’t been able push Solana (SOL), above the 20-day EMA ($103). This indicates that demand is drying up at higher levels.
Daily chart of SOL/USDT Source: TradingView
Sellers will benefit from a downsloping 20 day EMA and RSI below 44. The possibility of a fall below the ascending channel will increase if the price drops from the current level and the 20-day EMA. The SOL/USDT pair could fall to $75 if that happens.
Alternativly, if the price moves above the 20-day EMA and rises, it could signal accumulation at the support level. The pair could rally to $110. The pair could then rally to $110. A break or close above this level would suggest that the pair might extend its stay within the channel for a few days.
Terra’s LUNA token fluctuated between the 20-day EMA ($91), and the 50-day SMA ($94) over the past few days. On April 25, buyers drove the price higher than the 50-day SMA ($94), but it was not able to sustain that high level.
Daily chart of LUNA/USDT Source: TradingView
On April 26, the bears brought the price below the 20-day EMA. The LUNA/USDT pairing could slide further towards $75 if the price falls and continues to sustain below $86, This level is likely to be defended aggressively by the buyers.
The bulls will attempt to push the pair past the psychological resistance of $100 if the price rises from its current level and above the 50-day SMA. The pair could reach $119 if they succeed.
The 20-day EMA is flattish and the RSI just above the midpoint are not in the bulls’ favor.
Cardano (ADA), after repeatedly failing to surpass the psychological level of $1, has slowly been falling towards the strong support at $0.74.
Daily chart ADA/USDT Source: TradingView
Bears have an advantage because of the RSI close to the oversold territory and the 20-day EMA ($0.93) that is downwardly sloping. Now, the sellers will attempt to lower the ADA/USDT currency pair below $0.74. The pair may resume its downtrend if they succeed.
Contrary to the assumption, if the price moves above $0.74 support or the current level, the bulls will try to push the pair higher than the 20-day EMA. The pair could reach $1 if they succeed. If they break above this resistance, it could lead to a rally to $1.26.
Related: Ex-BitMEX CEO explains why Bitcoin will reach $1 million by 2030
Avalanche (AVAX), has traded between $65-$99 over the last few days. The price is slowly falling towards the support range, where buyers can mount a strong defense.
Daily chart of AVAX/USDT Source: TradingView
The bulls will try to push the AVAX/USDT price pair higher than the $20-day EMA ($76) if the price bounces from the current level. If they succeed, it could be the first sign that the bears are losing their grip. Breaking and closing above the 200-day SMA ($85), could lead to a rally up to $99.
Alternativly, if the price falls below the current level or 20-day EMA and drops below $65, it may open the door to a fall to $51. The path of least resistance lies to the downside, as indicated by the RSI in negative territory and the 20-day EMA that is downwardsloping.
Dogecoin (DOGE), soared above the overhead resistance at $0.17, but the bulls couldn’t overcome this barrier. This failure may have led to short-term traders profit-booking, which brought the price below the 20-day EMA ($0.14) of April 26.
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA remains flat, while the RSI is close to the midpoint. This suggests that the DOGE/USDT pair could move in a range-bound direction in the near future. The DOGE/USDT exchange rate could fall to $0.12 if the price falls below the 50-day SMA ($0.13). Although the bulls will defend this level vigorously, if they fail stop the decline, the psychological level at $0.10 could become the next stop.
After the bulls push, the pair could rise above $0.17. Bears can sink below $0.10. Volatility is expected to continue until then.
For the past few days, Polkadot has been stuck between $23-$16. This means that traders sell rallies to the resistance levels and buy dips to support the range.
Daily chart of DOT/USDT Source: TradingView
The support has been broken and buyers will attempt to push the DOT/USDT price above the 50-day SMA ($19.39). It will indicate that the pair could extend its stay within the range for a few days if they succeed.
If the price falls below $16, it is a sign that there is more supply than demand. The price could fall to $14, which is the crucial support. This level is crucial for bulls to protect as a break below could signal the resumption or downtrend.
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.