Bitcoin (BTC), the overall crypto sector, and the S&P 500 index correct on April 6, underscoring the close correlation between the two sectors.
Despite the weakness, institutional investors do not appear to be stopping buying, suggesting they remain optimistic over the long term. Terra used the drop to buy another 5,040 bitcoin, bringing its total holdings to 35,768 bitcoin.
Terra was not alone in this endeavor. MicroStrategy, the treasury with the largest bitcoin reserves, also added 4,197 bitcoin to its holdings through its subsidiary MacroStrategy. After the last purchase, the business intelligence company holds 129,218 Bitcoin.
Another sign of a strong appetite for bitcoin can be seen in the inflows into the two Canadian bitcoin exchange-traded funds. Funds increased holdings to an all-time high of 69,052 bitcoin, up from 6,594 since January, according to Glassnode data.
Could bitcoin and altcoins enter a deeper correction or will lower levels attract buying? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
After trading in a tight range between the 200-day simple moving average ($48,240) and $45,000 for the past few days, the bears made their move and took the price below the 20-day exponential moving average (44,567 $) drawn.
The Relative Strength Index (RSI) has fallen to the midpoint and the 20-day EMA is flattening out. This suggests that the bullish momentum could be weakening. If the price recovers from the 50-day SMA ($41,752), the bulls will make another attempt to push the BTC/USDT pair above the 200-day SMA.
Conversely, if the bears sink the price below the 50-day SMA, it will signal that the pair may extend its stay inside the ascending channel. The pair could then gradually drop towards the strong support at $37,000.
ETH/USDT
The bulls’ failure to sustain Ether (ETH) price above the 200-day SMA ($3,487) may have resulted in short-term traders taking profits. This has pulled the price to the critical support at the 20-day EMA ($3,223).
If the price recovers from the 20-day EMA, it will indicate that the bulls will buy the dips. The bulls will then make another attempt to push and sustain the price above the 200-day SMA. If successful, the ETH/USDT pair could start its march north towards $4,150, where the bears are likely to mount strong defenses.
Contrary to this assumption, if the bears sink the price below the 20-day EMA, selling could gather momentum and the pair could drop to the 50-day SMA ($2,907).
BNB/USDT
Binance Coin (BNB) again failed to break the 200-day SMA ($468) on April 5. The long wick on the daily candle showed that the bears are vigorously defending the 200-day SMA.
The BNB/USDT pair has fallen to the 20-day EMA ($424). The bears will now try to sink and sustain the price below the 20-day EMA. If successful, the pair could extend its decline to the 50-day SMA ($398). A strong recovery from this level suggests that the pair could remain range bound between the 200-day SMA and the 50-day SMA.
On the other hand, if the price recovers from the 20-day EMA, the bulls will attempt to push the pair above the 200-day SMA and challenge the $500 resistance.
SOL/USDT
Solana (SOL) rally stalled on April 2nd and the price has fallen below the $122 breakout level. The bulls are expected to vigorously defend the 20-day EMA ($113).
A strong rebound from the 20-day EMA suggests that sentiment remains positive and traders are buying on dips. The bulls will then attempt to push the price above the overhead barrier at the 200-day SMA ($149).
Alternatively, a break and close below the 20-day EMA will indicate that the bullish momentum has weakened. The pair could then drop to the 50-day SMA ($96). A strong rebound from this level could keep the pair stuck between the 50-day SMA and the 200-day SMA.
XRP/USDT
Ripple (XRP) turned down and slipped below the 20-day EMA ($0.81) on April 5. Selling continued today and the price broke below the 50-day SMA ($0.78).
The RSI has dipped into negative territory and the 20-day EMA has started declining, suggesting that bears have a slight advantage. If the price sustains below the 50-day SMA, the XRP/USDT pair could drop to $0.70. This is a key level for the bulls to defend because if it gives way, the decline could extend to $0.60.
On the contrary, if the price turns up from the current level and scales above the 20-day EMA, the bulls will try to push the pair above the 200-day SMA ($0.89).
ADA/USDT
The failure of the bears to propel Cardano (ADA) above the overhead resistance at $1.26 may have tempted short-term traders to book gains. That pulled the price below the 20-day EMA ($1.09).
If the price breaks below the 20-day EMA, the pair could drop to the 50-day SMA ($0.96). The bulls are likely to defend this level aggressively, but if the bears overcome them, the ADA/USDT pair could drop to the strong support at $0.74. A strong recovery from this level suggests the pair could consolidate between $0.74 and $1.26 for some time.
Alternatively, if the price rises from the current level, the bulls will try again to push the pair above the overhead resistance. If successful, the ADA/USDT pair could rally to the 200-day SMA ($1.47).
LUNA/USDT
Terra’s LUNA token has been in a strong uptrend, but the doji candlestick pattern on April 5 warned that the bullish momentum could weaken. The negative divergence on the RSI also indicated that the bulls may be losing their footing.
The uncertainty of the doji candlestick pattern has dissolved to the downside today. The bears will now try to drag the price to the 20-day EMA ($102). This is a key level for the bulls to defend as a strong rebound from it will indicate sentiment remains bullish and traders are buying on dips.
Conversely, if the price breaks below the 20-day EMA, selling could intensify as traders rush for the exit. That could sink the LUNA/USDT pair to the 50-day SMA ($86).
Related: Bitcoin first slips below $44,000 in April as trader warns that “something is wrong” with BTC.
AVAX/USDT
The bulls bought the pullback to the 20-day EMA ($89) on April 4, but they failed to push Avalanche (AVAX) above the overhead resistance at $98. This suggests that bears continue to aggressively defend the overhead resistance.
The 20-day EMA is flattening out and the RSI has dipped into negative territory, suggesting that bears have a slight advantage. If the price breaks below the 50-day SMA ($82), the AVAX/USDT pair could drop to the next major support at $65. A bounce off this level suggests the pair could remain range bound between $65 and $98 for a few more days.
Conversely, if the price surges up from the current level, the bulls will make another attempt to scale above the $98-$100 overhead zone.
DOT/USDT
Polkadot (DOT) bounced off the 20-day EMA ($21) on April 4, but the bulls failed to clear the $23 barrier. This may have enticed short-term traders to take profits.
The DOT/USDT pair fell below the 20-day EMA today and the RSI has entered negative territory. This suggests that the bulls are losing their footing. The next stop might be the 50-day SMA ($19). The bulls are likely to defend this level vigorously, but if support breaks, the decline could extend to $16.
Alternatively, a strong rebound from the 50-day SMA could suggest that the pair could consolidate between $19 and $23 for a few days. The bulls need to push and sustain the price above $23 to signal the start of a potential new uptrend.
DOGE/USDT
Dogecoin (DOGE) surged above the overhead resistance at $0.17 on April 5, but the bulls failed to break the hurdle at the 200-day SMA ($0.18). This may have led to profit booking by the short-term bulls and selling by the aggressive bears, leading to today’s sharp reversal.
The DOGE/USDT pair is likely to retest the 20-day EMA ($0.14). If the price recovers from this level, it will indicate that bulls will continue to buy dips. Buyers will then attempt a renewed attempt to clear the overhead barrier at the 200-day SMA.
This positive view will be invalidated if the price declines further and breaks below the 20-day EMA. Such a move could open the doors for a potential drop to $0.12. The pair could then remain stuck between $0.10 and $0.18 for a few more days.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You should do your own research when making a decision.
Market data provided by HitBTC Exchange.
https://cointelegraph.com/news/price-analysis-4-6-btc-eth-bnb-sol-xrp-ada-luna-avax-dot-doge BTC, ETH, BNB, SOL, XRP, ADA, LUNA, AVAX, DOT, DOGE