Bitcoin (BTC), which is closely correlated to the S&P 500, has been bought by institutional investors. However, they don’t seem to be waiting for a turn in the US equities market to occur or decoupling to take place before purchasing more Bitcoin.
Coinbase Pro saw 30,000 Bitcoin leave in one day, which suggests strong institutional demand.
MicroStrategy is a publicly traded company that holds the largest single-wallet Bitcoin wallet. However, it seems that MicroStrategy is not content with its 129,219 Bitcoin. Michael Saylor, CEO of the firm, wrote to shareholders that it aims to “vigorously pursue and increase awareness” about its Bitcoin strategy.
Everyday cryptocurrency market performance. Source: Coin360
Luna Foundation Guard (LFG), which is a non-profit organization affiliated to Terra and owns 42.530 Bitcoin, has also been a major buyer of Bitcoin in the last few days. Terraform Labs recently gave LFG $820 million worth LUNA tokens. Some believe this could be used to purchase more Bitcoin.
Are the massive BTC outflows coming from pro-trader crypto platforms indicating that there may be a bottom? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin’s recovery stalled at $41,561 April 13, which indicates that higher levels continue triggering selling. The sellers are trying to defend the psychological level of $40,000.
Daily chart of BTC/USDT Source: TradingView
The 20-day exponential moving mean (EMA) (42,419) is sloping downward and the relative strength indicator (RSI) (negative territory) is in negative territory. This indicates that the path to the downside is the most likely.
The selling could intensify if the price falls below $39,200. If this happens, the BTC/USDT exchange pair could fall to the support line in the ascending channel. This level is likely to be defended aggressively by the bulls.
Contrary to popular belief, if the price rises and crosses above the 20-day EMA it will indicate accumulation at lower levels. The bulls will attempt to push the pair up to $45,400.
For the past three trading days, Ether (ETH), has been wedged between the 20 day EMA ($3,144), and the 50 day simple moving average ($2,975). This indicates that bulls are defending 50-day SMA, while bears are selling rallies to the 20 day EMA.
Daily chart of ETH/USDT Source: TradingView
The selling could accelerate if the price falls below $2,950. This level could act as support, but if it breaks, the next stop could become the uptrend line.
If the price rises above the 20 day EMA and bounces off its current level, the pair could rally to an overhead zone of $3,491 and $3,600. This zone is important to monitor as a break or close above it could signal a new up-move.
BNB broke above $420 on April 13, but the bulls couldn’t build on this advantage. Although the bears brought the price down below the 20-day EMA, the bulls are not losing much ground.
Daily chart BNB/USDT TradingView
The RSI close to the midpoint and the flattish 20 day EMA indicate a range-bound movement in the near-term. If the price climbs above $427 the bulls will push the BNB/USDT pairs to the 200-day SMA ($420), where they will face strong resistance from the bears.
Contrary to popular belief, bears will attempt to lower the price below $391 if it falls from its current level. The strong support at $350 could be broken if they succeed. This level is likely to be defended vigorously by the buyers.
The rebound of Ripple (XRP), gained momentum and reached the 50 day SMA ($0.78) April 15. The strong resistance at $0.91 could be next if the price holds above the 50-day SMA.
Daily chart of XRP/USDT Source: TradingView
The 20-day EMA ($0.77) has slowed down and the RSI is close to the midpoint. This suggests that there will be range-bound activity in the near future. For the next few days, the XRP/USDT pairing could be stuck between $0.69- $0.91.
Contrary to popular belief, if the price drops below the 50-day SMA it will indicate that bears are selling rallies. The price could drop to $0.69. The pair could drop to $0.62 if it breaks and closes below this support.
For the past three days, Solana (SOL), has been trading between the 20-day EMA ($108), and the 50-day SMA(100). However, this tight-range trading pattern is unlikely to last long.
Daily chart of SOL/USDT Source: TradingView
The selling momentum could increase if bears fall and the price remains below the 50-day SMA. The SOL/USDT exchange rate could fall to $86. Sellers may benefit from the downsloping 20 day EMA and negative zone RSI.
The bulls will attempt to push the pair higher than the 20-day EMA if the price bounces off the 50-day SMA. It will indicate that the correction is over if they succeed. The pair could then reach $122, and then attempt to rally to the 200 day SMA ($148).
Cardano (ADA), has traded within a tight range of $0.91 to $1 over the past three trading days. This indicates uncertainty regarding the next directional move.
Daily chart ADA/USDT Source: TradingView
The bears are on top of the 20-day EMA ($1), which is in the negative territory. The ADA/USDT pair could continue its slide to $0.86 if the tight range is resolved to the downside.
Contrary to the assumption, if the price rises from its current level and breaks above 20-day EMA, then the pair could reach $1.10. If the price breaks above this minor resistance, it could open the door to a possible retest at $1.26. To signal a possible change in trend, buyers will need to overcome this barrier.
Terra’s LUNA token fell from $90 to $80, breaking below the support level at $80 on April 14. This indicates that bears are selling in every minor rally. The bears are now trying to bring the price down to $75.
Daily chart of LUNA/USDT Source: TradingView
The bearish crossover is imminent as the 20-day EMA ($94), and 50-day SMA (93) are close to completion. The RSI remains in negative territory and indicates that bears hold the upper hand. Breaking below $75 could send the LUNA/USDT pairing to the 200-day SMA ($66). This level is expected to be defended by the bulls.
Alternatively, if prices rise above the 20-day EMA and then fall below the current level, this could indicate that bears are losing their grip. The pair may then try to climb above the psychological $100 level.
Related: Cardano prices could drop 30% in Q2 despite a “major” hard fork
Avalanche (AVAX), a bounce from the uptrend line, could not exceed the moving averages. This indicates that bears are active at higher levels. The current price is stuck between the uptrend and moving averages.
Daily chart of AVAX/USDT Source: TradingView
This tight-range trading pattern is unlikely to last long. The bears hold a slight advantage due to the RSI below 40 and the downsloping 20 day EMA ($83). The selling momentum could increase if the price falls below the uptrend line and the price drops. The AVAX/USDT currency pair could drop to $65, the next support.
The buyers will attempt to push the pair higher than the moving averages if the price moves above the uptrend line. The pair could reach $90 and then $93.
The bulls succeeded in capturing the level after two failed attempts to close below the 20-day EMA ($0.14), on April 12th and 13. Buyers will now attempt to push Dogecoin to $0.16, and then to the 200 day SMA ($0.18).
Daily chart of DOGE/USDT Source: TradingView
The 200-day SMA is likely to be defended by the bears. If the price moves down from this resistance, it could mean that the DOGE/USDT currency pair will remain between the 50-day SMA ($0.13) or the 200-day SMA (for a few more days). A consolidation is also possible in the near-term, as the RSI and 20-day EMA are both flat above the midpoint.
If the price falls below the overhead resistance or current level, this view could be disproven. This could bring the pair to $0.12.
Polkadot’s recovery effort in Polkadot is weak, which indicates that the demand has dried up at higher levels. This makes it more likely that the correction will continue.
Daily chart of DOT/USDT Source: TradingView
The bears are ahead of the pack thanks to the RSI in negative territory and the downsloping 20 day EMA ($19). The price could fall to $16 if it falls below $17 from its current level. This level is expected to attract strong buyers.
If the price recovers below $16, buyers will attempt to break the $19 overhead resistance. If they succeed, it may signal that the correction is over. For a while, the DOT/USDT pair could consolidate between $23-$16.
Alternativly, if the price falls below $16, then the next stop should the critical support at 14
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