The holiday period that began on Good Friday saw Bitcoin (BTC), and many major altcoins, remain relatively quiet. This indicates that cryptocurrency traders don’t make large bets when U.S. equities markets close. This could be due to the close correlation between Bitcoin and S&P 500, and uncertainty about the performance of the equity markets in the coming week.
Some analysts predict weakness in the short term. Others believe that Bitcoin may be in a consolidation phase, with some of its upside still to come in the four year halving cycle. Josh Olszewicz is the head of research for alternative asset management firm Valkyrie. He said that it was “interesting.” Perhaps we didn’t get the blow-off top…it hasn’t happened yet.”
Daily view of crypto market data. Source:Coin360
While Bitcoin’s price action was sluggish in the last few days, altcoins that were included in Coinbase’s 50 list of crypto assets under consideration for listing have seen strong trending movements. This indicates that the market has become more focused on a particular coin, while the wider crypto market waits for new triggers to spark a trend.
Could Bitcoin and other altcoins make a directional turn in the coming days? Let’s look at the charts of top five cryptocurrencies that could be showing signs of recovery.
On April 16, Bitcoin formed an inside day candlestick pattern, indicating indecision between the bulls and bears. It is common for small range days to be followed by an expansion of the range, but it is hard to predict the direction.
Daily chart of BTC/USDT Source: TradingView
The bulls will try to push BTC/USDT above the 20-day exponentialmoving average ($42,085) if the price breaks below $41,000. If they succeed, the pair may begin a move up to the overhead resistance at $48,136 and then to the resistance line in the ascending channel.
Bears have a slight advantage because of the downsloping 20 day EMA and relative strength index (RSI), both in negative territory.
The selling might intensify if the price falls below $39,200. The channel support line could cause the pair to plummet. The decline could be extended to $32,917 if the pair breaks and closes below this support.
BTC/USDT 4-hour chart. TradingView
The 4-hour chart shows that price is still holding onto the 20-EMA. This indicates that bulls are trying to make a comeback. The overhead resistance of $41,561 and the 50-SMA could be broken by the price. If that happens, the pair could rally to its 200-SMA. At this level, the bears will mount a strong defense.
If the price falls below $39,200, this positive outlook will be invalidated in the short-term. The pair could then continue its correction and fall to $37,000 as strong support.
The strong support of $0.69 helped Ripple (XRP), which indicates strong demand at lower levels. On April 15, the bulls drove the price higher than the 50-day SMA ($0.78) but it could not sustain the upward movement. The bulls have attempted to maintain the price above the $20-day EMA ($0.77), which is a minor plus.
Daily chart of XRP/USDT Source: TradingView
The RSI at the midpoint and the 20-day EMA that are flat suggest a balance in supply and demand. If the XRP/USDT pairs rises above $0.80, this balance will shift in favour of the bulls. This could push the pair towards the 200-day SMA ($0.88), and then to strong resistance at $0.91.
Contrary to the assumption, if the price breaks below the 20-day EMA it will indicate that bears are active at higher levels. The sellers will attempt to pull the pair towards $0.69, which is the strong support.
XRP/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the bears aggressively defending the overhead resistance at 200-SMA, but they have not been able sink the pair below 20-EMA. This indicates that bulls are buying dips.
Bullish momentum may pick up if the buyers push the price higher than the 200-SMA. The price could rally to $0.85, where bears might erect a strong barrier. A break or close below the 20EMA could negate the bullish view and send the pair to the 50 SMA.
Chainlink (LINK), rose above the downtrendline on March 30, but the bulls couldn’t sustain higher levels. The price fell below $18 due to strong selling. However, a minor upside is that buyers bought the dip at $13.50 and are trying to make a lower low.
Daily chart for USDT LINK. Source: TradingView
A break above the 20-day EMA ($15) will signal strength. This will indicate that bears are losing their grip. The LINK/USDT currency pair could rise to $16 before attempting to challenge $18 overhead resistance. Breaking and closing above this level could allow for a rally to the 200-day SMA ($21).
If the price falls below the 20-day EMA, the bears will try to pull the pair back to $12.50. Breaking and closing below this level could signify the resumption or continuation of the downtrend.
LINK/USDT 4-hour chart. Source: TradingView
The pair is now above the downtrend line of the 4-hour chart. Both the 20-EMA (and the 50-SMA) are close to completing a bullish crossover. This indicates that bulls are trying to make a comeback.
The price could rise to $16 if it holds above the 20-EMA. If that happens, the bears might again be a challenge. If buyers can overcome this barrier, the bullish momentum may pick up.
If the price falls below the 20-EMA it could signal strong selling at higher levels. The bears will attempt to lower the pair to $13.50.
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Bitcoin Cash (BCH), has been trying for a bottom over the past few days. The price rose sharply from April 13 to break above the 20-day EMA (339) Although bulls were unable to build on the upward movement, it is encouraging that the price has not fallen below the 50-day SMA (329)
Daily chart BCH/USDT Source: TradingView
The 20-day EMA has been trying to move up, and the RSI is at 53. This indicates a slight advantage for the bulls. The up-move could resume if buyers push the price higher than $354, and the BCH/USDT pairs could rally to $395 overhead resistance.
This level is likely to be defended by the bears. The range-bound action could continue for a few days if the price drops below $395.
The bears will try to bring the pair to $259. if the price drops below the 50-day SMA.
BCH/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price rose sharply from $290 and $353. Although this may have tempted traders to make profits, it is a good sign that bulls didn’t allow the price below the 20EMA. This indicates that traders are still buying dips and the sentiment is positive.
Buyers will benefit from the rising 20-EMA and the RSI within the positive zone. The price may rise to $380 or $395 if it reaches $354.
Filecoin (FIL), has been trading in a downtrend and has been trading range-bound. The bulls are trying to create a base pattern, and the price has been consolidating between $16.50 & $27 over the past few days.
Daily chart of FIL/USDT Source: TradingView
The 20-day EMA ($21), and 50-day SMA ($20) are both flattish. The RSI is close to the midpoint, which suggests a balance between supply-demand.
The possibility of a rally towards the overhead resistance at $27 increases if bulls keep the price above the 20 day EMA. To signal a new uptrend, bulls must push the price higher than this level.
If the price falls below the 50-day SMA, this positive outlook could be invalidated. The bears will attempt to bring down the FIL/USDT currency pair to $16.50. The resumption or acceleration of the downtrend will be indicated by a break below and close to this level.
FIL/USDT 4-hour chart. TradingView
While the bears are trying to defend the overhead resistance at $22, a minor plus is that the bulls haven’t allowed the price below the 200 SMA. The bullish momentum may pick up if the price rises above the current level and breaks through the $22 to $33 resistance zone. This could lead to a rally to $27.
Bullish crossover is taking place between the 20-EMA, 50-SMA and the RSI. This indicates buyers are in an advantage. If the pair falls below the 200 SMA, this positive view could be invalidated.
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.