To start the week on a weak note, Bitcoin (BTC), and many major altcoins, have breached key support levels. The crypto markets are following the U.S. equity market, which is being pulled down by investors reducing their exposure to risky assets due to rising rates.
Arthur Hayes, former CEO of BitMEX derivatives giant BitMEX said that the Fed is tapering its asset purchases and rates are moving higher, which could lead to a collapse in the equity markets. Hayes predicts that the crypto markets will continue to fall and Bitcoin could drop to $30,000 and Ether ($ETH) to $2,500 in June.
Everyday cryptocurrency market performance. Source: Coin360
Cathie Wood, Ark Invest founder, stated in an interview with CNBC how decentralized finance applications have attracted a lot of interest from investors. The legacy banking sector is feeling the heat as they lose the lending and savings business to DeFi, but are also losing talent to crypto.
While the long-term outlook remains positive, Bitcoin and other altcoins could be weaker in the short term. Let’s look at the charts of the top 10 cryptocurrencies to see how they compare.
For the past few days, Bitcoin was above its 50-day simple moving mean (SMA) of $41,908 but it could not move above its 20-day exponential moving mean (EMA) of $43,576. This indicates that bears are selling during rallies.
Daily chart of BTC/USDT Source: TradingView
On April 11, the selling momentum picked up and the bears pulled the price below its 50-day SMA. Although there is some support at $40,000, the BTC/USDT price pair could fall to the support line for the ascending channel if it breaks. This level is likely to be defended by the bulls.
The bears are back in control of the market, as indicated by the RSI in negative territory and the 20-day EMA that is downsloping. If the price rises and breaks above 20-day EMA, this negative view will be invalidated. This could lead to a rise in the pair to $45,400.
Ether traded close to the 20-day EMA ($3,198), for the past few trading days, but the weak bounce from it suggested that there was not much aggressive buying by bulls. This may have encouraged the bears to accelerate their selling today.
Daily chart of ETH/USDT Source: TradingView
The bears will attempt to bring the price down to the 50-day SMA ($2,940). The ETH/USDT pair may consolidate for a few more days between the 50-day SMA ($2,940) and the 200-day SMA ($3,489) if the price bounces off of this support.
If the price falls below the 50-day SMA the selling could accelerate, and the pair could fall to $2,800. Breaking below this support could lead to a fall to the trend line. This level is expected to be defended aggressively by the bulls.
BNB fell below $445 overhead resistance on April 8, and broke below the 20 day EMA ($422). This indicates that bears may be selling rallies up to $445.
Daily chart BNB/USDT TradingView
In the last two days, the buyers attempted to push the price higher than the 20-day EMA but were unable to sustain it. The selling was renewed and the BNB/USDT price pair fell to the $50-day SMA ($400).
Bulls will accumulate on dips if there is a strong rebound from the current level. To increase the chances of a retest at $445, the buyers will need to push the price above the 20-day EMA.
If the price falls below the 50-day SMA it will indicate that there is no buying. This could cause the pair to drop below the $350 support.
Solana (SOL), which had fallen below $122 overhead resistance on April 8, plunged below the $20-day EMA ($112). Although the bulls managed to push the price above the 20-day EMA, it was unable to sustain higher levels. This indicates that bears are selling rallies.
Daily chart of SOL/USDT Source: TradingView
On April 11, the selling momentum picked up and the bears pulled the price below $106. SOL/USDT could drop to the 50 day SMA ($98), which will likely act as support.
It will indicate strong demand at lower levels if the price bounces off the 50-day SMA or breaks above the 20 day EMA. A break below the 50-day SMA and a close below it could lead to a further decline of $81.
Ripple (XRP), which had traded above $0.75 for the last few days, may have been subject to further selling due to the failure of the price to move above the moving averages.
Daily chart of XRP/USDT Source: TradingView
The 20-day EMA ($0.79) is down, and the RSI nears 34. This indicates that sellers are in charge. The $0.69 stop is the next. Bulls will defend this level vigorously if there is a strong rebound from this level. This could mean that the XRP/USDT currency pair remains range bound between $0.69 to $0.91 for a few more days.
If the price falls below $0.69, selling could get more intense and the pair could fall to $0.60.
Cardano (ADA), tried several times to climb above the 20-day EMA ($1.06) over the last few days, but the bears didn’t relent. On April 11, the selling intensified and the bears pulled down the price below its 50-day SMA ($0.96).
Daily chart ADA/USDT Source: TradingView
The ADA/USDT pair may drop to $0.74 if the price falls below the 50-day SMA. This level is expected to be defended by the bears. It could indicate that the bears may hold on to this level for several days with a strong bounce.
Contrary to the assumption, if the price rises from its current level and exceeds the 20-day EMA it will indicate strong buying at lower levels. This could reduce the trading range between $1.26 and the 50-day SMA.
Terra’s LUNA token fell below the $20 EMA ($99), and closed on April 8. On April 9, the bulls attempted a recovery but were unable to challenge the 20 day EMA. The bears pulled the price below $90 ($50) due to further selling.
Daily chart of LUNA/USDT Source: TradingView
The 20-day EMA is down, and the RSI has dipped below the negative zone. This suggests that momentum has turned in the favor of bears. The possibility of a fall to $75 is possible if the price remains below the 50-day SMA. The 200-day SMA ($65) could provide strong support if this level cracks.
Contrarily, if the price rises from its current level and reaches the 50-day SMA it will indicate strong demand at lower levels. The bulls will attempt to push it above the 20 day EMA.
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Avalanche (AVAX), which was below the 20-day EMA ($86) by the bulls on April 8, suggested that the bears are defending it. The price fell below the 50-day SMA ($82), which may have led to more selling.
Daily chart of AVAX/USDT Source: TradingView
The 20-day EMA is down, and the RSI has moved into the negative territory. This indicates that bears are in control. The sellers will try to push the price below $65, the next strong support.
If the price recovers from this level, it could suggest that the AVAX/USDT pairing could oscillate between $65-$99 for a few days.
Alternatively, if price rises from its current level, bulls will attempt to push the pair higher than the 20-day EMA, and challenge the overhead resistance of $99.
From April 8-10, the bulls defended the 50 day SMA ($19), but it is possible that selling was triggered by the failure of Polkadot to move above the 20-day EMA ($20). This has pushed the price below $19, the strong support.
Daily chart of DOT/USDT Source: TradingView
The 20-day EMA is beginning to decline and the RSI has moved into the negative territory. This indicates that bears are in control. The USDT/DOTT pair could drop to $16, which would be a strong support.
The pair could stay between $16-$21 for a few days if the price bounces off of this level. A break below $16 is expected to be the next trending move.
Dogecoin (DOGE), attempted a rally April 10, but the long candlestick wick shows that bears were selling at higher levels. The bears will now attempt to lower the price and maintain it below the $20 EMA ($0.14).
Daily chart of DOGE/USDT Source: TradingView
The DOGE/USDT pair could slip to the 50-day SMA ($0.13) if that happens. This move could mean that the pair will remain within the large range of $0.17 to $0.10 for the next few trading days.
A consolidation is expected in the near-term, as the flattening 20 day EMA and the RSI close to the midpoint suggest this. The bulls will attempt to push the pair back to $0.17 if the price recovers from its current level. An uptrend could be initiated if the price breaks or closes above the 200-day SMA ($0.18).
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.