After days of consolidation near the local high, Bitcoin is trying to breakout and challenge the $30,000 lev
After days of consolidation near the local high, Bitcoin is trying to breakout and challenge the $30,000 level.
Bitcoin’s (BTC) tight consolidation near its local top suggests that traders are waiting for a catalyst to start the next trending move. The consumer price data on April 12 and the producer price index data on April 13 could give insight into the Federal Reserve’s future rate hikes and shake the traders out of their slumber.
The dull price action in Bitcoin has not reduced the interest in it. According to Ahrefs search volume data, Bitcoin remains the most Googled term in the United States followed by the keywords Donald Trump and Breaking news.
Another point worth noting is that Bitcoin’s circulating supply continues to dwindle. Citing Glassnode data, investor Anthony Pompliano pointed out that 53% of Bitcoin’s circulating supply has not moved in the past two years.
If demand increases, there could be a shortage of supply, which could boost prices higher. What are the critical resistance levels to watch for in Bitcoin and altcoins in the near term?
Let’s study the charts to find out.
S&P 500 index price analysis
The S&P 500 index (SPX) turned up after a two-day correction on April 6, indicating that the sentiment remains positive and traders are buying on minor dips.
The upsloping 20-day exponential moving average (4,035) and the relative strength index (RSI) in the positive territory increase the likelihood of a rally to 4,200. Although this level has behaved as a formidable barrier in the past, it is likely to be scaled during the third attempt. If that happens, the index may challenge the 4,300 resistance. This level may witness aggressive selling by the bears.
The first important support to watch on the downside is the 20-day EMA. If this support cracks, the index could retest the vital support at the 200-day simple moving average ($3,944).
U.S. dollar index price analysis
The U.S. dollar index continues to trade below the 20-day EMA (102.73), indicating that the short-term trend remains bearish. Sellers are likely to defend the 20-day EMA during the current relief rally.
If the price turns down from the 20-day EMA, the index may drop to the vital support of 100.82. The bulls are expected to guard this level with all their might because a break below it will complete a head and shoulders (H&S) pattern. The index may then start the next leg of the downtrend.
Another possibility is that the price rebounds off the 100.82 support and rises above the 20-day EMA. If that happens, it will suggest that the index may oscillate between 100.82 and the 200-day SMA (106.47) for some more time.
Bitcoin price analysis
Bitcoin bounced off the 20-day EMA ($27,692) on April 9, indicating buying at lower levels. The gradually upsloping 20-day EMA and the RSI in the positive territory indicate advantage to the buyers.
The $29,200 is the key level to watch for on the upside. If bulls pierce this resistance, the BTC/USDT pair may climb to $30,000. The bears will try to stall the rally at this level but the likelihood of a break above it is high. The pair may then soar to $32,200.
Contrarily, if the price once again turns down from $29,200, it will suggest that bears are active at higher levels. The sellers will then make one more attempt to sink the price below the 20-day EMA. If they succeed, the pair may slump to $25,250.
Ether price analysis
Buyers successfully defended the 20-day EMA ($1,813) on April 9, indicating that the trend remains positive in Ether (ETH).
The bulls will try to overcome the barrier at $1,943 and catapult the price to $2,200. Sellers are likely to fiercely defend the zone between $2,000 and $2,200. If the price turns down from this zone but does not break below the 20-day EMA, it will signal that the rally may extend further.
This positive view will invalidate in the near term if the price turns down and plummets below the 20-day EMA. The ETH/USDT pair could then descend to the strong support zone of $1,743 to $1,680.
BNB price analysis
BNB (BNB) has been trading below the 20-day EMA ($313) for the past few days but the bulls have not allowed the price to slide below the immediate support at $306. This suggests that the selling pressure dries up at lower levels.
The bulls will take advantage of the situation and try to drive the price above the overhead resistance of $318. If they do that, the BNB/USDT pair could pick up momentum and soar to $338 and later to $346.
On the contrary, if the price turns down from the current level, it will suggest that the bears are selling on every minor relief rally. If the $306 level gives way, the pair may slip to the 200-day SMA ($292).
XRP price…
cointelegraph.com