Bitcoin (BTC), which is trying to hold its nearest support level, traders are monitoring to see if it can stay strong and close above $46,200 in 2022’s yearly open price.
According to Sam Stovall (chief investment strategist at CFRA), April has been historically the best performing month for the S&P 500. It is possible that the future of crypto markets could be bright if history repeats itself.
Daily view of crypto market data. Source:Coin360
The 19th million Bitcoin went into circulation on April 1st, which could boost sentiment. The crypto markets will need to wait long as the 2 million remaining Bitcoins are expected to be mined by 2140. This could change the focus to how little Bitcoin is still mined, and increase prices.
Is Bitcoin able to hold above its critical support? If so, will altcoins rally as well? Let’s look at the charts of top five cryptocurrencies, which may help them to recover in the near term.
Bitcoin is experiencing a fierce battle between the bears and bulls at the critical level of $45,400. Although the bears attempted to maintain the price below $45,400, the bulls prevailed. This indicates that bulls are trying to turn the level into support.
Daily chart of BTC/USDT Source: TradingView
The upwardly moving 20-day exponential moving mean ($44,333) as well as the relative strength index (+RSI) in positive territory suggest that the path of least resistance leads to the upside. The 200-day simple moving mean ($48,276) is the critical level to monitor for upside potential.
The BTC/USDT pair will likely gain momentum if bulls push the price higher than this barrier. Although the psychological level of $50,000 could provide minor resistance, the psychological level could be crossed and the next stop could reach $52,000.
Contrary to what you might think, if the price drops below the overhead resistance or current level, bears will try again to bring the pair below $45,400 as well as the 20-day EMA. The pair could fall to the 50-day SMA (41,615) if that happens.
BTC/USDT 4-hour chart. TradingView
The 4-hour chart clearly shows that the price has corrected since reaching the resistance line in the ascending channel. Bulls’ attempts to recover are met with stiff resistance at the downward trend line. The pair could reach the resistance line if bulls continue pushing the price higher than the downtrend line.
The resumption or continuation of the uptrend could be signaled by a break and close above this channel. The bears may attempt to sink the pair as low as $44,000 if the price moves below the downtrend line. The decline could extend to $42,594.
VeChain (VET), a cryptocurrency, surged above $0.07 overhead resistance on March 27, but the bears stopped the recovery at the 200 day SMA ($0.09). The bulls have not allowed price to fall below the breakout level of $0.07. This is a minor positive.
Daily chart VET/USDT Source: TradingView
If the price rises from its current level, bulls will attempt to overcome the hurdle at the 200 day SMA. It will indicate a possible shift in trend if they are able to do so. The VET/USDT exchange could rise to $0.10, and then to $0.13.
Buyers will benefit from the rising 20-day EMA ($0.06) as well as the RSI in positive territory. If the price falls below the 20-day EMA, this bullish view will be invalidated. This could push the pair towards the 50-day SMA ($0.05).
VET/USDT 4-hour chart. Source: TradingView
The 20-EMA has remained flattened and the RSI is close to the midpoint of the 4-hour chart. This indicates a balance between supply/demand. The bulls will try to push the pair higher if the price rises above $0.08. The bulls could attempt to propel the pair above $0.09 if they succeed.
The pair could fall to $0.07 if the price falls below the 50-SMA. Bulls can turn this support level into support and the pair could rise above $0.09. However, bears might be back if support at $0.07 is broken.
The price of Theta Network’s THETA token, $2.50 to $4.40 has ranged over the past few weeks. The bulls tried to push the price higher than the overhead resistance, but they failed. This indicates that the bears will continue to defend the level.
Daily chart THETA/USDT Source: TradingView
The price should not fall below $3.80. This will indicate that traders aren’t closing their positions quickly as they expect the uptrend to continue. The upwardly sloping 20 day EMA ($3.54), and the RSI close to the overbought area indicate that the path towards the upside is the most likely.
It will be a sign of an uptrend if buyers push the price higher than the overhead zone at $4.40 and below the 200-day SMA ($4.77). This could lead to a rally of the THETA/USDT pair to $6.
Contrary to the assumption, if the price falls below the 20-day EMA ($3.17), the next stop may be the 50 day SMA ($3.17). This move could indicate that the pair will remain range bound for a few days more.
THETA/USDT 4-hour chart. Source: TradingView
The 4-hour chart clearly shows that bulls have failed to push the price higher than the overhead resistance of $4.40. The 20-EMA has sunk and the RSI is close to the midpoint. This indicates a balance in supply and demand.
The short-term advantage for sellers could be eroded if the price falls below the 50 SMA. The price could drop to $3.50. If the price rises and continues to exceed the overhead resistance, then the bulls will have the upper hand.
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Since several months, THORChain has traded within a large descending triangular pattern. The price has risen sharply over the last few days to reach the downtrend line of this triangle, where bears are mounting strong resistance.
Daily chart RUNE/USDT TradingView
The RUNE/USDT exchange rate could fall to the $20-day EMA ($9.75) if the price drops from its current level. This is a crucial level to monitor because if the price rebounds from the 20-day EMA it will indicate that traders are buying dips and the sentiment remains positive.
This could increase the chances of a break above or below the downtrend line. The bearish triangle setup could be invalidated, which could signal a bullish trend. The pair could then rally to $17.
If the price falls below the 20-day EMA, this bullish outlook will be retracted in the near term. This could cause the pair to fall below the 200-day SMA ($7.88).
RUNE/USDT 4-hour chart. TradingView
The 4-hour chart shows that this pair faces strong resistance at $13. The bulls haven’t allowed the price to drop below $11 and maintain it there, which is a minor plus. This is an important level to watch.
The pair could fall to $10 if the price falls below this support. If the price recovers from $11, buyers will attempt to reestablish the uptrend by pushing the pair above the overhead resistance.
The downtrend line for Aave (AAVE), broke on March 29, which suggested a possible change in trend. The bears attempted to halt the recovery at the 200 day EMA ($226), but the bulls didn’t give up much.
Daily chart AAVE/USDT TradingView
On April 1, the buying recommenced and the pair AAVE/USDT broke above the 200 day SMA. It will be a sign of a new up-move if the price holds above the 200-day SMA.
The rally could extend to $300 if bulls push the price higher than $262. Although the bears might resist at this level, if bulls overcome it, the rally could reach $350.
If the price falls below the 200-day SMA, this bullish view could be invalidated. The bears might pull the price below the 200-day SMA ($187).
AAVE/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows bulls buying dips up to the 20-EMA. The uptrend can resume if bulls push the price higher than $261.20. The overhead zone between $283-300 could be a resistance for this rally.
The RSI has shown signs of a negative divergence. This indicates that bullish momentum could be weakening. The RSI will indicate that short-term bulls could be making profits if the price falls below the 20-EMA. This could lead to the pair falling below the 50-SMA.
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.