Bitcoin (BTC), the entire crypto sector and the S&P 500 index are correcting on April 6, which highlights the tight correlation between the two se
Bitcoin (BTC), the entire crypto sector and the S&P 500 index are correcting on April 6, which highlights the tight correlation between the two sectors.
Despite the weakness, institutional investors do not seem to be halting their purchases, suggesting that they remain bullish in the long term. Terra used the dip to buy an additional 5,040 Bitcoin, which takes its total holding to 35,768 Bitcoin.
Terra was not alone in this venture. MicroStrategy, the treasury with the largest Bitcoin reserves, also increased its holdings by 4,197 Bitcoin through its subsidiary MacroStrategy. After the latest purchase, the business intelligence firm holds 129,218 Bitcoin.
Another sign of strong appetite for Bitcoin is seen in the inflows to the two Canadian Bitcoin exchange-traded funds. According to Glassnode data, the funds boosted their holdings to an all-time high of 69,052 Bitcoin, an increase of 6,594 since January.
Could Bitcoin and altcoins enter a deeper correction or will lower levels attract buying? Let’s study the charts of the top-10 cryptocurrencies to find out.
After staying in a tight range between the 200-day simple moving average ($48,240) and $45,000 for the past few days, the bears made their move and have pulled the price below the 20-day exponential moving average ($44,567). The relative strength index (RSI) has dipped to the midpoint and the 20-day EMA is flattening out. This suggests that the bullish momentum could be weakening. If the price rebounds off the 50-day SMA ($41,752), the bulls will again attempt to push the BTC/USDT pair above the 200-day SMA. Conversely, if the bears sink the price below the 50-day SMA, it will signal that the pair could extend its stay inside the ascending channel. The pair could then gradually drop toward the strong support at $37,000. The failure of the bulls to sustain the price of Ether (ETH) above the 200-day SMA ($3,487) may have resulted in profit-booking by short-term traders. That has pulled the price to the critical support at the 20-day EMA ($3,223). If the price rebounds off the 20-day EMA, it will suggest that bulls are buying on dips. The bulls will then make another attempt to push and sustain the price above the 200-day SMA. If they succeed, the ETH/USDT pair could start its northward march toward $4,150 where the bears are expected to mount a strong defense. Contrary to this assumption, if the bears sink the price below the 20-day EMA, the selling could pick up momentum and the pair may drop to the 50-day SMA ($2,907). Binance Coin (BNB) once again failed to break above the 200-day SMA ($468) on April 5. The long wick on the day’s candlestick showed that the bears are defending the 200-day SMA with all their might. The BNB/USDT pair has dipped to the 20-day EMA ($424). The bears will now attempt to sink and sustain the price below the 20-day EMA. If they succeed, the pair could extend its decline to the 50-day SMA ($398). A strong rebound off this level will suggest that the pair may remain range-bound between the 200-day SMA and the 50-day SMA. Conversely, if the price rebounds off the 20-day EMA, the bulls will attempt to drive the pair above the 200-day SMA and challenge the resistance at $500. Solana’s (SOL) recovery stalled on April 2 and the price has dipped below the breakout level at $122. The bulls are expected to defend the 20-day EMA ($113) with vigor. A strong bounce off the 20-day EMA will suggest that the sentiment remains positive and traders are buying on dips. The bulls will then attempt to push the price above the overhead hurdle at the 200-day SMA ($149). Alternatively, a break and close below the 20-day EMA will suggest that the bullish momentum has weakened. The pair could then drop to the 50-day SMA ($96). A strong rebound off this level could keep the pair stuck between the 50-day SMA and the 200-day SMA. Ripple (XRP) turned down and slipped below the 20-day EMA ($0.81) on April 5. The selling continued today and the price broke below the 50-day SMA ($0.78). The RSI has dropped into the negative territory and the 20-day EMA has started to slope down, suggesting that bears have a slight edge. If the price sustains below the 50-day SMA, the XRP/USDT pair could drop to $0.70. This is an important level for the bulls to defend because if it gives way, the decline could extend to $0.60. On the contrary, if the price turns up from the current level and rises above the 20-day EMA, the bulls will attempt to propel the pair above the 200-day SMA ($0.89). The failure of the bears to propel Cardano (ADA) above the overhead resistance at $1.26 may have tempted short-term traders to book profits. That has pulled the price below the 20-day EMA… cointelegraph.comBTC/USDT
ETH/USDT
BNB/USDT
SOL/USDT
XRP/USDT
ADA/USDT