Bitcoin and altcoins continue to face selling at higher levels, indicating that the bears are not willing to let go of their advantage.
Bitcoin (BTC) remains closely correlated with the S&P 500 but the institutional investors do not seem to be waiting for a turnaround in the United States’ equities market or decoupling to happen before buying more Bitcoin.
Notably, 30,000 Bitcoin moved out of Coinbase Pro in a single day, suggesting strong institutional demand.
MicroStrategy, the publicly listed company which is the largest single-wallet holder of Bitcoin, does not seem to be content with its stash of 129,219 Bitcoin. In a letter to shareholders, the firm’s CEO Michael Saylor said that the company aims to “vigorously pursue” and “increase awareness” about its Bitcoin strategy.
Another entity that has been at the forefront of Bitcoin purchases in the past few days has been the Luna Foundation Guard (LFG), a nonprofit organization attached to Terra, which owns 42,530 Bitcoin. LFG was recently gifted $820 million worth of LUNA tokens by Terraform Labs, which some believe may be used to buy more Bitcoin.
Do the huge BTC outflows from a pro-trader crypto exchange suggest that a bottom may be close by? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin’s recovery fizzled out at $41,561 on April 13, indicating that higher levels continue to trigger selling. The buyers are currently attempting to defend the psychological level at $40,000.
The 20-day exponential moving average ($42,419) is sloping down and the relative strength index (RSI) is in the negative territory, indicating that the path of least resistance is to the downside.
If the price plummets below $39,200, the selling could intensify and the BTC/USDT pair could drop to the support line of the ascending channel. The bulls are likely to defend this level aggressively.
Contrary to this assumption, if the price turns up and breaks above the 20-day EMA, it will suggest accumulation at lower levels. The bulls will then attempt to push the pair to $45,400.
ETH/USDT
Ether (ETH) has been sandwiched between the 20-day EMA ($3,144) and the 50-day simple moving average ($2,975) for the past three days. This suggests that bulls are defending the 50-day SMA while bears are selling on rallies to the 20-day EMA.
If the price breaks and sustains below $2,950, the selling could accelerate and the ETH/USDT pair could drop to $2,817. This level might act as a support but if it cracks, the next stop could be the uptrend line.
Conversely, if the price rebounds off the current level and rises above the 20-day EMA, the pair could rally to the overhead zone between the 200-day SMA ($3,491) and $3,600. This is an important zone to watch out for because a break and close above it could signal the start of a new up-move.
BNB/USDT
Binance Coin (BNB) broke above the 20-day EMA ($420) on April 13 but the bulls could not build upon this advantage. The bears pulled the price back below the 20-day EMA on April 14 but a minor positive is that the bulls have not given up much ground.
The flattish 20-day EMA and the RSI near the midpoint indicate a possible range-bound action in the near term. If the price rises above $427, the bulls will try to push the BNB/USDT pair to the 200-day SMA ($420) where the bears are expected to mount strong resistance.
Contrary to this assumption, if the price turns down from the current level, the bears will try to sink the pair below $391. If they succeed, the decline could extend to the strong support at $350. The buyers are likely to defend this level with vigor.
XRP/USDT
XRP’s rebound picked up momentum and has reached the 50-day SMA ($0.78) today. If the price sustains above the 50-day SMA, the next stop could be the strong resistance at $0.91.
The 20-day EMA ($0.77) is flattening out and the RSI is near the midpoint, indicating range-bound action in the near term. The XRP/USDT pair could remain stuck between $0.69 and $0.91 for the next few days.
Contrary to this assumption, if the price turns down from the 50-day SMA, it will suggest that bears are selling on rallies. The pair could then drop to the critical level at $0.69. A break and close below this support could pull the pair down to $0.62.
SOL/USDT
Solana (SOL) has been stuck between the 20-day EMA ($108) and the 50-day SMA ($100) for the past three days but this tight-range trading is unlikely to continue for long.
If bears sink and sustain the price below the 50-day SMA, the selling could pick up momentum. The SOL/USDT pair could then decline to $86. The downsloping 20-day EMA and the RSI in the negative zone indicate advantage to sellers.
On the…
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