Bitcoin (BTC), and many major altcoins, are trying to defend the support levels. This indicates that bears see an opportunity and want to control the price action.
Long-term Bitcoin bulls expect a huge return over the next few years, so the short-term price movement doesn’t seem to be a concern. Cathie Wood, CEO of ARK Invest, reiterated her goal to achieve $1 million in Bitcoin prices by 2030 while speaking at the Bitcoin 2022 conference.
Ricardo Salinas, a telecom billionaire, stated that Bitcoin and Bitcoin equities make up 60% of his liquid investments portfolio. This is a huge increase over his Bitcoin exposure in 2020 which was only 10%.
Everyday cryptocurrency market performance. Source: Coin360
The long-term outlook may be positive but Bitcoin could still face pressure due to the strong U.S. Dollar. The tapering of balance sheets and rising rates have lifted the U.S. currency index (DXY), to over 100 for the first-time since May 2020.
Will Bitcoin fall below critical support levels? Or will buyers make a strong recovery. Let’s look at the top 10 cryptocurrencies charts to see what happens.
Bitcoin fell to $42,594 at the critical support on April 7, but this is a good sign that bulls have held this level. Bulls are continuing to defend this level with vigor, as evidenced by the long tail in April 8’s candlestick.
Daily chart of BTC/USDT Source: TradingView
The moving averages have remained flattened and the relative strength indicator (RSI), is close to the midpoint. This suggests a balance between demand and supply.
Bulls will attempt to push the price higher than the 20-day exponentially moving average (EMA), which is $44,314, and the critical overhead resistance of $45,400. The BTC/USDT pair may challenge the SMA (200-day simple moving average) ($48,220) if they succeed.
Contrary to the assumption, if the price drops below the 20-day EMA (or $45,400), it will indicate that bears are selling at every rise. The bears will attempt to lower the price below the 50-day SMA (41,789). If they succeed, the decline may extend to the support line for the ascending channel.
The price of Ether (ETH), which broke below the 20 day EMA ($3,224) April 6, was not sustained by the bears. The bulls bought the dip, pushing the price higher than the 20-day EMA. This indicates strong demand at lower levels.
Daily chart of ETH/USDT Source: TradingView
If the price remains above the 20-day EMA the ETH/USDT exchange rate could rise to the $200-day SMA ($3,487). If the resistance is broken, it will signal the beginning of an uptrend. This could lead to a rise in the pair to $4,150.
If the bulls do not drive the price above 200-day SMA it could indicate that the bears are holding higher levels. For a few days, the pair could oscillate between the 200 day SMA and 20-day EMA.
Breaking and closing below $3,100 could lead to a drop in the 50-day SMA ($2,915).
BNB fell below the 20-day EMA ($425) but bulls were able to buy at lower levels. Although the price recovered quickly and broke above $445 overhead resistance on April 7, the candlestick’s long wick suggests that bears may be selling rallies.
Daily chart BNB/USDT TradingView
The possibility of a fall to the 50-day SMA ($399) is increased if the price falls below the 20-day EMA. Bullish momentum is weakening according to the flattish moving averages, and the RSI close to the midpoint. Breaking below the 50-day SMA would bring the large range of $350 to $445 into play.
However, bulls may attempt to push BNB/USDT towards the 200-day SMA ($468) if the price bounces off the 50 day SMA. For a few days, the pair could trade between these moving averages.
Although the bulls halted the decline at the 20 day EMA ($114), they could not push Solana, (SOL), back above the overhead resistance of $122. This indicates that bears are active at higher elevations.
Daily chart of SOL/USDT Source: TradingView
The next stop for the SOL/USDT pair could be $106 if the price falls below the 20-day EMA. The SOL/USDT currency pair could drop to the SMA 50 ($97) if this level is not reached. This will indicate that the pair could remain in a range of $81 to $122 for a few more days.
Contrary to the assumption, bulls will attempt to break the barrier at the 200 day SMA ($149) if the price rises from its current level.
Ripple (XRP), which broke below the 50-day SMA ($0.78), on April 6, indicated that bears have made a comeback. Although the bulls attempted to push the price higher than the 50-day SMA, the bears refuse to give up.
Daily chart of XRP/USDT Source: TradingView
The 20-day EMA ($0.81) is beginning to decline and the RSI has moved into the negative territory. This indicates that sellers have an advantage. The bears will try to extend their decline by bringing the XRP/USDT exchange rate below $0.75 if the price is below the 50-day SMA. The next stop for them could be $0.70
Contrary to what is being assumed, bulls will push the pair towards the 200-day SMA ($0.88) if the price rises from its current level.
Cardano (ADA), broke below the 20-day EMA ($1.08) and closed on April 6. Bulls bought the dip, but are having difficulty pushing the price above the 20-day EMA.
Daily chart ADA/USDT Source: TradingView
The bears will try to bring the ADA/USDT price below the 50-day SMA ($0.96) if it fails to break or sustain above the 20 day EMA. The pair could fall to $0.74 if they succeed.
The bulls may attempt to overcome the $1.26 overhead hurdle if the price rises above the 20 day EMA. This move would complete the cup-and-handle pattern and signal the beginning of a new uptrend. The pair could rise first to the 200-day SMA ($1.45), then rally to $1.60.
Terra’s LUNA token has been in an uptrend. Although the price tried to rebound from the $20-day EMA ($102), the bears are still selling at higher levels. This pushed the price below April 8’s 20-day EMA.
Daily chart of LUNA/USDT Source: TradingView
The bulls may be losing their grip on the market due to the flattening 20 day EMA and the RSI close to the midpoint. The selling could accelerate if the price falls below the 20-day EMA. If that happens, the LUNA/USDT exchange rate could fall to the 50-day SMA ($88). This level is expected to be defended by the bulls, but if they fail, $82 could become their next stop.
If the price rises above the 20 day EMA and the current level, it will indicate that bulls are continuing to buy dips. The pair will attempt to break the $119 all-time high and resume its uptrend.
Related: Near Protocol plans a Terra-like price rally following a $350M funding increase
Avalanche (AVAX), fell below the 20-day EMA ($89), and the 200-day SMA(84) on April 6, but the bulls successfully defended its 50-day SMA (“82”). This shows that traders continue to accumulate on dips.
Daily chart of AVAX/USDT Source: TradingView
Buyers will now push the price higher than the 20-day EMA. The AVAX/USDT pair may rise to $99. If it succeeds, This level is important to watch because a break or close above it could lead to a rally to $117 or $127.
If the price falls below the overhead resistance or current level, and the 50-day SMA breaks, the pair could fall to $65. The bulls and bears are not in the clear with the flattish moving averages, or the RSI at the midpoint.
Following the sharp decline from $23, Polkadot is trying to hold the price above the 50-day SMA (19). A retest is possible if buyers push the price higher than the 20-day EMA (21).
Daily chart of DOT/USDT Source: TradingView
The RSI at the midpoint and the moving averages that are flattish indicate a range-bound movement in the near term. The selling could intensify if the price drops below the 20-day EMA or falls below the 50-day SMA. If this happens, the DOT/USDT pairing could fall to $16.
To signal a new uptrend, the bulls must clear the $23 hurdle. A close above $23 could signal a potential up-move towards the 200-day SMA ($29).
Dogecoin (DOGE), which fell sharply from $0.17 overhead resistance on April 6, but a positive sign was that the bulls maintained support at the 20 day EMA ($0.14).
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA is continuing to climb steadily and the RSI remains in the positive territory. This indicates a slight advantage for buyers. The bulls will attempt to push DOGE/USDT above the 200-day SMA ($0.18). The pair could begin a move to $0.22 if they succeed.
A shallow bounce, on the other hand, will indicate weak demand. The bears will attempt to lower the price below moving averages and challenge $0.10 as strong support.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
HitBTC exchange provides market data.
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.