Today’s CPI report highlighted a slight decline in inflation, a development which could put a strong price floor beneath Bitcoin and select altcoins.
The March consumer price index climbed marginally by 0.1%, below economists’ expectation of a 0.2% increase and February’s advance of 0.4%. Although inflation is showing signs of slowing, the year-on-year CPI increased by 5%, well above the Federal Reserve’s 2% target.
The FedWatch Tool shows a 67% probability of a 25 basis point rate hike in the Fed’s May meeting but by the end of the year, the majority of the market participants have come to expect rates to be lower than the current level.
An expansive monetary policy is usually positive for risky assets. In addition, crypto traders will focus on Bitcoin’s (BTC) halving which is set to occur next year. That is also likely to be a positive for cryptocurrency prices. While the near-term picture is uncertain, the long-term remains bullish.
Will traders book profits in the near term, pulling Bitcoin and altcoins lower or will the rally extend further?
Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin is witnessing resistance near $30,550 but a positive sign is that the bulls have not given up much ground. This suggests that the buyers are not rushing to the exit.
The bears are unlikely to give up without a fight. They will try to yank the price below the 20-day exponential moving average ($28,163), which remains the key support level to keep an eye on. If they are successful, the selling could pick up and the BTC/USDT pair may slump to the support at $25,250.
Conversely, if the price continues to move up from the current level or rebounds off the 20-day EMA, it will signal strong demand at lower levels. That will enhance the prospects of a rally to $32,400, which is likely to behave as a formidable resistance.
Ether price analysis
Ether (ETH) snapped back from the 20-day EMA ($1,831) on April 9 but the bulls could not push the price above the immediate resistance at $1,943.
If the price turns down from the current level and breaks below $1,824, the ETH/USDT pair will form a double top in the short term. That may tug the price down to the strong support at $1,680.
If bears want to keep the uptrend intact, they will have to protect the 20-day EMA and force the pair above the resistance at $1,943. If they can pull it off, the pair may resume its up-move. The $2,000 level may offer a resistance but it is likely to be crossed. The pair may then rally to $2,200.
BNB price analysis
BNB (BNB) surged above the $318 resistance on April 11 but the long wick on the candlestick shows that the bears are selling near $338.
The 20-day EMA ($315) is flattish and the RSI is turning down toward the center. This indicates a potential range-bound action in the near term. If the price slips below the 20-day EMA, the BNB/USDT pair may oscillate between $338 and the 200-day SMA ($292) for a few days.
Another possibility is that the price rebounds off the 20-day EMA with strength. That will suggest buying on dips. The bulls will then again try to kick the pair above the overhead zone between $338 and $346.
XRP price analysis
The long wick on XRP’s (XRP) April 11 candlestick shows that the bears are trying to stall the recovery at $0.53.
Sellers will try to strengthen their position by pulling the price below the 20-day EMA ($0.49). If they are successful, several short-term bulls may be forced to close their positions. The XRP/USDT pair may then slump toward the next support at $0.43.
Instead, if the price rebounds off the 20-day EMA, it will suggest that bulls continue to view the dips as a buying opportunity. The bulls will have to overcome the stiff resistance at $0.53 to regain the upper hand.
Cardano price analysis
Cardano (ADA) turned down from the neckline of the inverse head and shoulders (H&S) pattern, indicating that the bears are trying to halt the recovery at this level.
The 20-day EMA ($0.38) is an important level to watch out for on the downside. If the price bounces off this level, it will suggest that the sentiment remains positive and traders are buying on dips.
That will increase the likelihood of a break above the neckline. If that happens, the reversal pattern will complete. The ADA/USDT pair may then start a new uptrend toward $0.60.
Conversely, if the pair plummets below the 20-day EMA, it will suggest that the short-term traders are booking profits. That may sink the pair to the 200-day SMA ($0.35).
Dogecoin price analysis
Dogecoin’s (DOGE) rebound off the moving averages could not even reach the 38.2% Fibonacci retracement level of $0.09. This suggests…
cointelegraph.com