Bitcoin and select altcoins are attempting a recovery, but the most likely outcome of any breakout is strong
Bitcoin and select altcoins are attempting a recovery, but the most likely outcome of any breakout is strong selling at higher levels.
Bitcoin (BTC) continues to trade below $40,000 as bears try to flip the level into resistance. The soaring U.S. dollar index (DXY), which is usually inversely related to Bitcoin, favors the sellers. However, it is not all gloom and doom because the Bitcoin bulls seem to be taking clues from the Nasdaq (NDX) which has been hovering close to positive territory.
Although risky assets have been on the receiving end for the past few days, Bitcoin hodlers are focusing on the long-term bullish projections and ignoring the short-term weakness. Glassnode data shows that Bitcoin’s supply that has not moved for at least a year has hit above “64% for the first time ever.”
While speaking to Bloomberg, SkyBridge Capital founder Anthony Scaramucci said that the firm is bullish on cryptocurrency markets “over the three to five years.” The hedge fund now plans to reposition itself by allocating a majority of its assets under management to digital assets and become the “leading cryptocurrency asset manager and adviser:”
Could a further decline in Bitcoin and altcoins attract buying from long-term investors? What are the key levels to keep an eye on? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin dipped below the immediate support at $38,536 today but the bears could not build upon their advantage. The long tail on the day’s candlestick suggests strong buying near the support line of the ascending channel.
The buyers will now attempt to push the price above the 20-day exponential moving average ($40,974). If they manage to do that, the BTC/USDT pair could rise to $43,000.
Conversely, if the price turns down from the 20-day EMA, it will suggest that the sentiment remains negative and bears are selling on rallies to strong overhead resistance levels. The pair could then decline to the support line of the channel.
A break and close below the channel could accelerate selling and the pair may slide to the strong support zone between $34,300 and $32,917. The bulls are expected to defend this level with all their might.
ETH/USDT
Ether (ETH) broke and closed below the 50-day simple moving average ($3,022) on April 21 indicating weakness. The buyers tried to push the price back above the 50-day SMA on April 22 but failed, suggesting that the bears have flipped the level into resistance.
The bears pulled the price below the immediate support at $2,883 today but the long tail on the day’s candlestick suggests that bulls are aggressively buying at lower levels. If buyers propel the price above the 20-day EMA ($3,045), the ETH/USDT pair could rise to $3,200 and thereafter rally to the 200-day SMA ($3,477).
Conversely, if the price turns down from the psychological level at $3,000, it will suggest that bears continue to sell at higher levels. If the pair slips below $2,797, the pair could drop to the uptrend line.
BNB/USDT
Binance Coin (BNB) broke below the immediate support at $391 today but the long tail on the day’s candlestick shows that bulls are buying at lower levels.
If the price sustains and closes above $391, the bulls will strive to push the BNB/USDT pair above the 20-day EMA ($411). If they succeed, the pair could rally to the overhead resistance at $445.
On the contrary, if the price turns down from the current level or the 20-day EMA and breaks below $382, it will suggest that bears are selling on rallies. That could pull the pair to the strong support at $350. The downsloping 20-day EMA and the relative strength index (RSI) in the negative zone suggest that bears have an edge.
XRP/USDT
Ripple (XRP) broke below the strong support at $0.69 today, indicating that the range-bound action has resolved in favor of the sellers. The 20-day EMA ($0.74) has turned down and the RSI is near the oversold territory, indicating that bears are in command.
If the price sustains below $0.69, the XRP/USDT pair could drop to the immediate support at $0.62. If the price rebounds off this level but does not rise back above $0.69, it will suggest that bears have flipped the level into resistance. That will increase the possibility of a drop to the strong support at $0.54.
Conversely, if the price turns up and rises back above $0.69, it will suggest that the markets have rejected the lower levels. The pair could then again attempt to break above the 50-day SMA ($0.78).
SOL/USDT
Solana’s (SOL) tight range trading resolved to the downside and the price has slipped to the support line of the ascending channel. This is an important level to keep an eye on.
If…
cointelegraph.com