Bitcoin (BTC) and major altcoins are attempting a recovery after the sharp fall on April 11. According to Glassnode’s recent weekly report, Bitcoin has witnessed a “modest volume of profit-taking by investors” since mid-February, which could “be providing sufficient headwinds to prices.”
While some investors are booking profits, the Luna Foundation Guard, the nonprofit organization attached to Blockchain protocol Terra, has continued to grow its stockpile of Bitcoin. Terra added 2,508 Bitcoin on April 13 to take its total holding to 42,406 Bitcoin, just shy of Tesla’s corporate treasury at 43,200 Bitcoin.
Larger investors do not seem to be perturbed by the volatility and sharp declines in cryptocurrencies and are taking a long-term view. Pantera Blockchain Fund, which had plans to raise $600 million, has amassed about $1.3 billion, indicating huge demand.
Will bulls be able to sustain the bounce in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Although Bitcoin broke below the psychological level at $40,000 on April 11, the bears could not build upon this momentum. This indicates that the bulls are buying at lower levels.
The relief rally could hit a wall at the 20-day exponential moving average (EMA) ($42,967). If the price turns down from this resistance, it will suggest that bears are selling on rallies. The downsloping 20-day EMA and the relative strength index (RSI) below 44 suggest a minor advantage to sellers.
The bears will have to sink the price below $39,200 to resume the decline. The BTC/USDT pair could then drop to the support line of the ascending channel. On the contrary, if the price continues higher and breaks above the 20-day EMA, the pair could challenge the overhead resistance at $45,400.
ETH/USDT
The bulls are attempting to arrest the decline at the 50-day simple moving average (SMA) ($2,958). Although Ether (ETH) attempted a rebound on April 12, the buyers could not sustain the higher levels.
The bulls are again attempting to extend the relief rally on April 13. The bounce is likely to face selling at the 20-day EMA ($3,172). If the price turns down from this level, the likelihood of a break below the 50-day SMA increases. If that happens, the ETH/USDT pair could decline to the uptrend line.
Contrary to this assumption, if the price breaks above the 20-day EMA, it will suggest aggressive buying by the bulls. The pair could then attempt a rally to the 200-day SMA ($3,490). The pair may then consolidate between the 50-day SMA and the 200-day SMA for a few days.
BNB/USDT
BNB plunged below the 50-day SMA ($402) on April 11 but the bears could not capitalize on this breakdown. The bulls purchased the dip aggressively and pushed the price back above the 50-day SMA on April 12.
The buyers are attempting to push and sustain the price above the 20-day EMA ($420). If they succeed, the BNB/USDT pair could rally to the 200-day SMA ($470) where the bears may mount a strong resistance. That could keep the price inside the range between the 200-day SMA and the 50-day SMA for a few days.
Conversely, if the price fails to sustain above the 20-day EMA, it will indicate selling at higher levels. The bears will then make one more attempt to sink the price below the immediate support at $391. If they manage to do that, the pair could slide to $350.
SOL/USDT
Solana (SOL) bounced off the 50-day SMA ($99) on April 12 but the bulls could not push the price above the 20-day EMA ($110). This suggests that bears are selling on rallies to the 20-day EMA.
The bears will now attempt to sink and sustain the price below the 50-day SMA. If they manage to do that, the SOL/USDT pair could drop to the strong support at $81. The bulls are expected to defend this level with all their might because a break and close below it could resume the downtrend.
Contrary to this assumption, if the price rises from the current level and breaks above the 20-day EMA, the bulls will make another attempt to clear the overhead hurdle at $122.
XRP/USDT
Ripple (XRP) bounced off the strong support at $0.69 on April 12 but the bulls could not sustain the recovery. This indicates that the bears are active at higher levels. The inside-day candlestick pattern on April 13 suggests indecision among the bulls and the bears.
The 20-day EMA ($0.77) is sloping down and the RSI is near 39, suggesting that the path of least resistance is to the downside. If the price breaks below the strong support at $0.69, the selling could pick up momentum. The XRP/USDT pair could then decline to $0.62.
Conversely, if the price continues to move up, the pair will attempt to rise above the 50-day SMA ($0.78). If that happens, it will suggest that the pair could trade inside a large range between $0.69 and $0.91 for some more time.
ADA/USDT
Cardano (ADA) attempted a relief rally on April 12 but the bulls could not clear the overhead hurdle at the psychological level at $1. This indicates that bears are attempting to flip the $1 level into resistance.
If the price once again turns down from the overhead resistance and breaks below $0.91, the correction could resume. The ADA/USDT pair could then drop to $0.86 and later to the critical support at $0.74. The 20-day EMA ($1.04) is sloping down and the RSI is in the negative zone, suggesting advantage to bears.
This negative view will be invalidated in the short term if the price turns up and breaks above the 20-day EMA. Such a move could open the doors for a possible rally to the overhead resistance at $1.26.
LUNA/USDT
Terra’s LUNA token formed an inside-day candlestick pattern on April 12 but the long wick on the day’s candlestick suggests that bears sold at higher levels. A minor positive is that the buyers are again trying to extend the recovery on April 13.
If bulls push the price above $89, the LUNA/USDT pair could rise to the 20-day EMA ($96) where the bears are likely to mount a strong resistance. The downsloping 20-day EMA and the RSI in the negative zone indicate advantage to sellers.
If the price turns down from the overhead resistance and breaks below $80, the correction could resume and the pair may slide to the strong support at $75.
Alternatively, if the price continues to move up and breaks above the 20-day EMA, the pair could rally to the 61.8% Fibonacci retracement level at $104.
Related: ApeCoin eyes 250% rally amid ‘bull pennant’ breakout, Robinhood APE listing rumors
AVAX/USDT
The bulls are attempting to arrest the decline in Avalanche (AVAX) at the uptrend line but the bounce is likely to encounter strong resistance from the bears near the moving averages.
If the price fails to break above the moving averages within the next few days, the possibility of a break below the uptrend line increases. If that happens, the AVAX/USDT pair could decline to the next support at $65.
This level is likely to act as a strong support as the bulls have defended it successfully on two previous occasions. A strong rebound off it will indicate that the pair may trade inside the range between $65 and $99 for a few more days.
Alternatively, a break and close below $65 could intensify selling and the pair may drop to the critical support at $51.
DOT/USDT
Polkadot (DOT) is attempting a recovery after the sharp fall on April 11, which suggests buying at lower levels. However, the bulls are likely to face stiff resistance from the bears at higher levels.
If the price fails to rise above the immediate overhead resistance at $19, the bears will try to sink the DOT/USDT pair below the strong support at $16. If they succeed, the decline could extend to $14. The downsloping 20-day EMA ($19) and the RSI in the negative territory indicate that the path of least resistance is to the downside.
Alternatively, if the price moves up sharply and breaks above the 20-day EMA, it will suggest accumulation at lower levels. The pair could then consolidate inside the range between $16 and $23 for a few more days.
DOGE/USDT
The buyers are attempting to defend the 50-day SMA ($0.13) but the weak rebound off the strong support suggests a lack of buyers in Dogecoin (DOGE) at higher levels. This increases the possibility of a break below the 50-day SMA.
If the price fails to sustain above the 20-day EMA ($0.14), the sellers will attempt to extend the decline by pulling the DOGE/USDT pair below the 50-day SMA. If they succeed, the pair could drop to $0.12 and then slide to the critical support at $0.10.
Contrary to this assumption, if the price turns up sharply and rises above $0.15, it will suggest strong buying at the 50-day SMA. The pair could then remain stuck between the 200-day SMA ($0.18) and the 50-day SMA for a few days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.