Bitcoin and select altcoins are at risk of falling below their respective support levels and starting a deep
Bitcoin and select altcoins are at risk of falling below their respective support levels and starting a deeper correction.
Bitcoin (BTC) managed to stay above $27,000 for the past three days but its 9% loss last week spooked some newbie traders. Glassnode data shows that short-term holders, who acquired Bitcoin less than 155 days ago, have been moving coins to the exchanges at a loss since April 16.
While short-term traders are panicking and focusing on the $25,000 level on the downside, some analysts are turning bullish for the next year. Bloomberg Intelligence analyst Jamie Douglas Coutts expects Bitcoin to reach $50,000 by April 2024.
Another bullish voice was that of Standard Chartered analyst Geoff Kendrick who said that the “crypto winter” may be over. He projected that Bitcoin could skyrocket to $100,000 by end-2024.
What are the important support levels where the latest leg of the correction may attract buyers? Let’s study the charts of Bitcoin and altcoins to find out.
S&P 500 index price analysis
The S&P 500 index (SPX) has pulled back to the 20-day exponential moving average (4,098), indicating that the bears are selling the rallies near 4,200.
A minor positive in favor of the bulls is that they have not allowed the price to slip below the 20-day EMA. That improves the prospects of a break above 4,200. If that happens, the index may rally to 4,300. This level may witness aggressive selling by the bears.
The first level of support on the downside is the 20-day EMA. If it cracks, the index may slip to the 50-day simple moving average (4,034) and thereafter to the uptrend line of the ascending triangle pattern.
U.S. dollar index price analysis
The failure of the bulls to push the U.S. dollar index (DXY) above the 20-day EMA (102) in the past few days seems to have emboldened the bears who are trying to gain control.
The index could retest 100.82 which is an important level to keep an eye on. If this support breaks down, the index will complete a bearish head and shoulders pattern. This setup may start the next leg of the downtrend toward 97.50.
On the contrary, if the price once again rebounds off 100.82, it will suggest that the bulls are protecting this level with all their might. A break and close above the 20-day EMA will suggest that the index may oscillate between 100.82 and 106 for some time.
Bitcoin price analysis
Bitcoin is stuck between the moving averages for the past few days, indicating indecision among the bulls and the bears. The bulls are buying the dips to the 50-day SMA ($27,078) while the bears are protecting the 20-day EMA ($28,466).
This uncertainty is unlikely to continue for long. The downsloping 20-day EMA and the relative strength index (RSI) in the negative territory indicate advantage to the bears. This increases the likelihood of a break below the 50-day SMA.
The BTC/USDT pair may then plunge to the important support at $25,250. The bulls are expected to defend this level with all their might.
On the upside, a break and close above the 20-day EMA will suggest that the bulls are attempting a comeback. The index may then attempt a rally to $31,000.
Ether price analysis
The bulls successfully held Ether’s pullback at the 38.2% Fibonacci retracement level of $1,846 but they failed to clear the overhead hurdle at the 20-day EMA ($1,913).
The bears will try to strengthen their position further by pulling the price below the 50-day SMA ($1,799). If they do that, the ETH/USDT pair could extend its decline to the 61.8% retracement level of $1,663.
Contrarily, a strong rebound off the 50-day SMA or the 50% retracement level of $1,754 will suggest solid buying at lower levels. A break and close above the 20-day EMA will tilt the advantage in favor of the bulls. The pair may then rise to $2,000 and later to $2,200.
BNB price analysis
The bulls are trying to push BNB (BNB) above the overhead resistance at $338 but the bears are holding their ground.
If bulls fail to clear the overhead hurdle, the bears will again attempt to sink the BNB/USDT pair below the 50-day SMA ($316). If they manage to do that, the pair may drop to $300. This level may act as a minor support but if it also cracks, the next stop could be $280.
On the upside, the bulls will have to thrust the price above the $338 to $346 resistance zone to seize control. There is a minor resistance at $360 but that is likely to be crossed. The pair could then soar to $400.
XRP price analysis
The bulls defended the 50-day SMA ($0.45) on April 22 and tried to thrust XRP (XRP) above the 20-day EMA ($0.48) on April 24 but the long wick on the candlestick shows that the bears are active at higher levels.
cointelegraph.com