BTC and altcoins remain stuck within a tight range, suggesting that the sideways trading could continue in t
BTC and altcoins remain stuck within a tight range, suggesting that the sideways trading could continue in the short-term.
The U.S. dollar currency index (DXY) turned down sharply after rising above 101 on April 20 but this weakness in the dollar has not helped Bitcoin (BTC), possibly because the S&P 500 is struggling to build upon its strong rally on April 19. This indicates that Bitcoin remains tightly correlated with the U.S. equity markets.
Irrespective of the lackluster price action, research projects several positives for Bitcoin this year. A report by Insider Intelligence shows that the number of adult crypto users in the U.S. could surge from 28.3 million in 2021 to 33.7 million in 2022. Along with the growth in the number of crypto users, the firm also expects the use of cryptocurrencies to make purchases by U.S. adults to increase to 3.6 million, a growth of 70 percent this year
In another positive sign which could lead to increased adoption, Australian financial regulators have approved the first Bitcoin exchange-traded fund which will begin trading on April 27. The Australian Financial Review expects the fund to attract about $1 billion in inflows.
Could the higher levels in Bitcoin and select altcoins continue to attract selling by the bears? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin turned around sharply from $38,536 on April 18, indicating strong buying at lower levels. The buyers continued their purchase and pushed the price to the 50-day simple moving average ($42,104).
The 20-day exponential moving average ($41,811) has flattened out and the relative strength index (RSI) is just below the midpoint, suggesting a balance between supply and demand.
This equilibrium could tilt in favor of the buyers if the price rises and sustains above the 50-day SMA. That will increase the possibility of an up-move to $43,900. If bulls manage to overcome this barrier, the momentum may pick up and the BTC/USDT pair could rally to the 200-day SMA ($48,052).
Contrary to this assumption, if the price turns down sharply from the current level, it will suggest that bears are active at higher levels. The sellers will then attempt to pull the pair to the support line of the ascending channel.
ETH/USDT
Ether (ETH) broke below the 50-day SMA (3,000) on April 18 but the bears could not sustain the lower levels. The bulls purchased the dip and pushed the price back above the 50-day SMA.
The buyers drove the price above the 20-day EMA ($3,113) today but the long wick on the day’s candlestick suggests that bears continue to sell at higher levels. The bears are currently attempting to sustain the price below the 20-day EMA.
If they succeed, the ETH/USDT pair could consolidate in a tight range between $2,883 and $3,166. This tight range trading is unlikely to continue for long and may result in a sharp range expansion within the next few days.
A break below $2,883 could sink the pair to the uptrend line while a break above $3,166 could clear the path for a possible retest of the 200-day SMA ($3,491).
BNB/USDT
The bulls purchased the drop below the 50-day SMA ($408) on April 18, indicating strong demand at lower levels. Sustained buying pushed Binance Coin (BNB) above the 20-day EMA ($419) on April 19 but the bulls are struggling to sustain the momentum.
The flattish moving averages and the RSI just above the midpoint suggest a range-bound action in the near term. If the price turns down from the current level or the overhead resistance, the bears will again attempt to sink the BNB/USDT pair below the 50-day SMA. A break and close below $391 could result in a decline to the strong support at $350.
Alternatively, if the price rebounds off the 20-day EMA ($419), the bulls will attempt to push the pair above the strong resistance at $445 and challenge the 200-day SMA ($471).
XRP/USDT
The long tail on Ripple’s (XRP) April 18 candlestick suggests strong buying at lower levels. The price reached the 50-day SMA ($0.78) on April 19 but the bears are defending this level with vigor.
If the price turns down from the current level, it will suggest that the XRP/USDT pair could remain range-bound between the 50-day SMA and $0.69 for some time. A break and close below $0.69 could open the doors for a possible drop to $0.60.
Conversely, if the price turns up, the bulls will try to push and sustain the pair above $0.80. If they manage to do that, the pair could rise toward the overhead zone between the 200-day SMA ($0.87) and $0.91. The flat moving averages and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears.
SOL/USDT
Solana (SOL) bounced off the support line of the ascending channel on April…
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