For the past two days Bitcoin (BTC), has been stuck between $45,400 & $47,500, which indicates a fierce tussle between buyers and sellers, as they attempt to control the trend.
Glassnode, an on-chain analytics company, revealed that 100,000 Bitcoin was withdrawn from exchanges in March. This large number of withdrawals has only occurred twice in Bitcoin’s history, with the largest occurring in March 2020. This does not mean that the price will rise immediately. The momentum only picked up in 2020 during the fourth quarter.
Analysts remain divided on the short-term. Some expect Bitcoin to fall to $44,800, or even $43,000. Others anticipate a rally to the psychological level of $50,000.
Everyday cryptocurrency market performance. Source: Coin360
The crypto markets continue to grow and attract new investors as they mature. Gemini crypto exchange reported that in India, Brazil, and Hong Kong, the number of people who bought their first cryptocurrency in 2021 rose by more than 50%. Over 40% more people started investing in 2021 than the United States, Europe, Latin America and Asia Pacific.
Can Bitcoin and altcoins rebound from their support? Could this help extend the recovery? Let’s look at the charts for the top 10 cryptocurrencies to see if we can find out.
The candlestick’s long wick over the past two days indicates that bears are selling close to the 200-day simple movement average (SMA) of $48,266, as evidenced by the candlestick’s lengthy wick. The bulls have not allowed Bitcoin below $45,400, which is a minor plus.
Daily chart of BTC/USDT Source: TradingView
This tight trading range is unlikely to last long. The BTC/USDT price could fall to the 50-day SMA (41,689) if the price falls below the 20-day exponentially moving average (EMA) of $44,467 This could cause the short-term bullish setup to be invalidated.
However, if the price moves above the current level or 20-day EMA it will indicate that traders are continuing to buy dips. This could increase the chances of the pair breaking above the 200-day SMA. The pair could rally to $52,000 if that happens.
The price of Ether (ETH), which broke above the 200-day SMA ($3,487), was closed on April 3. However, the bulls were unable to sustain higher levels. This indicates that the bears are trying lower the price to trap aggressive bulls.
Daily chart of ETH/USDT Source: TradingView
The bears will attempt to bring the ETH/USDT currency pair below $3,411, and then pull it to the 20-day EMA ($3,197). If bulls want to maintain positive momentum, this is an important level to defend.
The buyers will attempt to push the price higher than the 200-day SMA if the price bounces off the 20-day EMA. The pair could rally to $4,000.
However, if the 20 day EMA support is broken, selling could accelerate and the pair could drop to the 50-day SMA ($2,895).
BNB traded close to $445 for the last few days. The bulls drove the price higher repeatedly but they couldn’t sustain it and challenge the 200 day SMA ($467). This shows that demand is drying up at higher levels.
Daily chart BNB/USDT TradingView
The bears will attempt to push the price below the 20-day EMA ($421) which is an important support. If the price bounces off of this level, buyers will attempt to overcome the overhead hurdle to push the BNB/USDT pairing to $500.
If the price falls below the 20-day EMA it could indicate that short-term traders are making profits. This could push the price below the 50-day SMA. If the price breaks below this support, it could indicate that the breakout above $445 was a bull trap.
Solana’s recovery (SOL), stalled below the 200-day SMA ($150). This indicates that bears are selling at higher levels. Now, the bears will try to get the price down to $122.
Daily chart of SOL/USDT Source: TradingView
If the price recovers from $122, bulls will attempt to overcome the hurdle at the 200 day SMA. The SOL/USDT pair may rally to $200 if they succeed. Buyers have an advantage due to the rising 20-day EMA (111 USD) and relative strength index (RSI), near the overbought area.
Contrary to popular belief, bears could sink below $122 and the pair could fall to the 20-day EMA. This support is important to monitor as a break below it could lead to a fall to the 50-day SMA ($96).
Ripple (XRP), which was trying to push Ripple above $0.86 overhead resistance, failed. Short-term traders may be tempted to book profit, and the price could fall to the SMA (0.78).
Daily chart of XRP/USDT Source: TradingView
If the price bounces back off the 50-day SMA it will indicate that bulls are buying dips. This could mean that the XRP/USDT price pair will remain between the 50-day SMA ($0.89) and the 200-day SMA ($0.89) for a few more days.
A consolidation is also suggested by the flattish 20 day EMA ($0.82) as well as the RSI close to the midpoint.
The pair could plunge to $0.70 if bears push the price below 50-day SMA. Or, buyers could drive the price higher than the 200-day SMA and the pair could rally to psychological levels of $1.
Cardano (ADA), which was discovered on April 1, has reached the overhead resistance of $1.26, where bulls will likely face strong resistance from bears.
Daily chart ADA/USDT Source: TradingView
The upwardly sloping 20 day EMA ($1.08), and the RSI close to the overbought area indicate that the path towards the upside is the one with the least resistance. Bulls pushing the price higher than $1.26 could cause the ADA/USDT to rally to the 200 day SMA ($1.48), and then to $1.63.
If the price falls below the overhead resistance once more, the pair may drop to the 20 day EMA. The psychological level of $1 could be reached if the price breaks and closes below this support.
Terra’s LUNA token, which was $111 above the overhead resistance on April 2, broke through and reached a new record of $118 on April 3. This indicates that the bulls are now in control.
Daily chart of LUNA/USDT Source: TradingView
The negative divergence in the RSI indicates that bullish momentum could be weakening. However, the LUNA/USDT pairing could see a slight correction or consolidation.
If the price falls below the 20-day EMA ($100), traders may make profits if they have purchased at lower levels. This could bring the price down to $84 at the 50-day SMA.
However, if the price bounces off the 20-day EMA it will indicate that bulls are continuing to defend the level aggressively. The buyers will attempt to push the pair higher than $118. The pair may rise to $125 if they are successful, and then march towards $150.
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The overhead resistance at $98 was broken repeatedly by Avalanche (AVAX), but bulls couldn’t sustain higher levels. This shows that the bears are fighting for this level with great vigor.
Daily chart of AVAX/USDT Source: TradingView
The bears will attempt to push the price down to the $20-day EMA ($89). This level is important to monitor because a strong rebound from it will indicate that traders are buying dips and the sentiment remains bullish.
This could increase the chance of a break, and help the pair close above the $98-100 resistance zone. The AVAX/USDT pair could rally up to $120 if that happens.
Contrary to the assumption, if the price falls below the 20-day EMA and continues lower, the next stop could possibly be the 50 day SMA ($82). This could allow the pair to extend its range-bound action for several more days.
Polkadot (DOT), broke above the overhead resistance of $23 on April 3, but the bulls couldn’t sustain higher levels. This indicates that the bears are not giving up yet and continue to sell on every rise.
Daily chart of DOT/USDT Source: TradingView
The bears want to keep the price below $23 in order to trap aggressive bulls that may have taken long positions on a breakout above resistance. The 20-day EMA ($21) is the critical level to monitor on the downside.
The DOT/USDT pair may drop to $19 if this support breaks. The DOT/USDT pairing could be range bound between $19 to $23 for a few more days if the price bounces off of this level.
However, the pair could rally to $24 if it rises from its current level and breaks above $24.
Dogecoin (DOGE), which rebounded from the 20-day EMA ($0.13) April 3, indicated that bulls continue to defend the level aggressively. Buyers have an advantage because of the rising 20-day EMA, and the RSI in positive zone.
Daily chart of DOGE/USDT Source: TradingView
On April 4, the buying continued and bulls tried to resume the upward-move towards the overhead resistance zone of $0.17 and the 200 day SMA ($0.18). However, the candlestick’s long wick suggests that bears may be selling at higher levels.
If the price falls below the 20-day EMA it will indicate that the DOGE/USDT pairing could be range bound between $0.10 to $0.17 for a few days.
To signal a possible change in trend, the bulls must propel the price higher than the 200-day SMA.
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.