Bitcoin (BTC), which dropped from a high point of $47,200 on March 5 to a low point of $42,107 April 8, may be a sign that short-term traders might have wanted to lock in their profits. The price action has remained in a tight range over the weekend, which indicates that demand and supply are in balance.
Despite the Crypto Fear & Greed Index being in the fear zone the Bitcoin whales on crypto exchange Bitfinex remained unscathed and continued to buy BTC.
One large investor bought $1 million worth of Bitcoin each day without trying to time the market using dollar-cost average.
Daily view of crypto market data. Source:Coin360
Terra was another whale that used the dip to increase its Bitcoin stockpile. The wallet associated with Luna Foundation Guard has added 4,130 Bitcoin to its total holdings, bringing it up to 39,897.98 BTC.
Whale buying could cause Bitcoin to rebound sharply. In the short-term, will altcoins rise as well? Let’s look at the charts of top-5 cryptocurrency that could outperform if sentiment improves.
Bitcoin rebounded from $42,594 support on April 7, but the bulls couldn’t break the barrier at the 20 day EMA ($43.922) on April 8. This could have attracted traders selling, which may have pushed the price below $42,594 support.
Daily chart of BTC/USDT Source: TradingView
The bulls are trying to defend the 50 day simple moving average (42,620). This is a minor positive. Bulls pushing and maintaining the price above the 20 day exponential moving average ($43923) will increase the likelihood of range-bound activity in the short-term. For a few days, the BTC/USDT pair could oscillate between the 50 and 200-day SMAs ($48,219).
A weak bounce from the 50-day SMA would suggest that there is not much aggressive buying at these levels. The bears will attempt to take advantage of this opportunity and bring the pair below 50 days SMA. If they succeed, the pair may drop to $40,000 psychologically. If this level cracks, then the next stop could be the support channel of the ascending channel.
BTC/USDT 4-hour chart. TradingView
The 4-hour chart shows the rebound from the $42,594 support fizzled at the 20-EMA. This is a sign that bears are selling at higher levels.
The 20-EMA is falling and the relative strength indicator (RSI), is in the negative zone. This indicates a selling advantage.
The selling might intensify if the price falls below $42,000. The price of the pair could drop to $40,000, where buyers might attempt to stop the decline.
A break above the 20EMA could allow for a recovery to the 50 SMA. To gain an upper hand, the bulls must push for a price increase above $45,400.
Near Protocol (NEAR), which was a sharp decline from the stiff overhead resistance of $20 on April 8, and the long candlestick on that day, suggests that bears are aggressively protecting the overhead resistance.
Daily chart NEAR/USDT Source: TradingView
NEAR/USDT could fall to the $20-day EMA ($15), where it could serve as a strong support. Bulls will continue to buy dips if the price bounces off of this level. The bulls will attempt to push the pair towards a new record high. Buyers will benefit from the rising 20-day EMA, and positive RSI.
Contrary to popular belief, a price drop below the 20-day EMA could indicate that traders are booking large profits. This could lead to a drop to the 50 day SMA ($12).
NEAR/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that prices have bounced repeatedly from below the 50 SMA. This shows that buyers are continuing to accumulate on dips. The bulls will attempt to push the price towards $20 if the price rises from its current level and above the 20-EMA.
Short-term traders might rush to exit if the price drops below $16 and holds there. This could push the pair towards $14.50. This level could crack and indicate that bears are back at the wheel.
FTX Token, (FTT), broke and closed above $49 March 24, but the bulls couldn’t turn the level into support during a retest. The price fell below the 200-day SMA (47 USD) and reached the 50-day SMA (45 USD).
Daily chart of FTT/USDT Source: TradingView
The buyers are trying to defend the 50 day SMA, which is a minor plus. It will signal strong buying at lower levels if the bulls push the price above the 200-day SMA.
A break above $54 could see the bullish momentum pick up. The FTT/USDT currency pair could rally to $66 as the pattern target.
However, if the price does not break above the 200 day SMA, there is a greater chance of a breakout below the uptrend line. The pair could fall to $40, and then to $37 if that happens.
FTT/USDT 4-hour chart. Source: TradingView
The 4-hour chart clearly shows that the pair is falling within a channel pattern. The bears managed to pull the price down below the channel’s support line, but they couldn’t sustain lower levels. This suggests that the channel break may have been a bear trap.
The pair could reach the 50-SMA if bulls continue to push the price higher than the 20-EMA. The resistance level could act as an additional barrier, but if bulls overcome it the next stop could become the downtrend line. Breaking and closing above this barrier could indicate a change in trend.
If the price falls below $44, this positive outlook will be invalidated.
Related: Monero overcomes crypto market slump by launching a 10% XMR price rise — What’s next?
Ethereum Classic (ETC), formed a double bottom pattern after it broke, and closed above the overhead resistance of $38. Profit-booking began when the price rallied to $52 on March 29 at which point it reached its pattern target. This brought the price to $38 at the breakout level.
Daily chart ETC/USDT Source: TradingView
The buyers will attempt to turn the $38 breakout level into support. If they succeed, it will signal a shift in sentiment from buying on rallies to selling on dips.
The correction could be ended if the price goes up from its current level, bounces off $38 or breaks above $45. The sellers will attempt to push the ETC/USDT exchange rate to $53. The resumption will be signaled by a break above or close below this level.
If the price falls below the 50-day SMA ($35), this positive outlook will be invalidated.
ETC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that while the pair has rebounded from the $38 level with strength, the bulls are having trouble keeping the price above 20-EMA. This suggests that bears are selling higher levels.
One positive is that bulls have not lost much ground since the 20-EMA. This raises the likelihood of a break above resistance. The price could reach the 50-SMA if that happens. If the resistance is broken, it could lead to a potential up-move of $48 or $53.
Contrary to the assumption, selling could increase if the price falls below $38, and the pair could fall to $32.
Monero (XMR), signaled a possible trend change when it broke above the downtrendline. Despite the bears trying to push the price below the downtrend, the bulls refused to relent.
Daily chart of XMR/USDT Source: TradingView
Although the bears want to stop the rally at $239, the candlestick’s long tail shows that buyers are buying at lower levels. Buyers have an advantage due to the RSI in positive territory and the upsloping 20 day EMA ($216).
If the price is maintained above $239 by buyers, the XMR/USDT may gain momentum and rally to $255.
However, if the price falls below the current level it will indicate that the bears are actively defending $239 overhead resistance. If the price breaks below the 20-day EMA, it will signal that bullish momentum is waning. The pair could drop to the 50 day SMA ($190).
XMR/USDT 4-hour chart. Source: TradingView
For the past few days, the pair has been in an uptrend. Profit-booking by short-term traders attracted profit, but the bears couldn’t pull the pair below their 20-EMA. This indicates that there is strong buying at lower levels.
The up-move could accelerate if buyers continue to drive the price higher than $239. If the price drops from $239, it may fall to $209, and the pair will remain range-bound for a few more days.
You should research all aspects of trading and investment before making any decision.
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.