Bitcoin (BTC) and most major altcoins are attempting to defend the immediate support levels, suggesting that bears are sensing an opportunity and attempting to take control of the price action.
The short-term price action doesn’t seem to worry long-term bitcoin bulls, who expect massive returns over the next few years. During her speech at the Bitcoin 2022 conference in Miami, ARK Invest Chief Executive Officer Cathie Wood reiterated her Bitcoin price target of $1 million by 2030.
Meanwhile, telecom billionaire Ricardo Salinas said during the conference that BTC and Bitcoin stocks make up 60% of his liquid investment portfolio. That’s a massive increase from his Bitcoin exposure in 2020, which was just 10% of his cash balance.
While it may be positive in the long-term, Bitcoin could remain under pressure in the short-term due to the strength of the US dollar. Rising interest rates and a rejuvenating balance sheet have pushed the US Dollar Currency Index (DXY) above 100 for the first time since May 2020.
Could bitcoin break below critical support levels or will buyers see a strong recovery? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin tumbled to the critical support at $42,594 on April 7, but a positive sign is that the bulls have held this level. The long tail of today’s candlestick suggests that the bulls continue to vigorously defend the level.
The moving averages have flattened out and the Relative Strength Index (RSI) is near the midpoint, suggesting a balance between supply and demand.
The bulls will now attempt to push the price above the 20-day exponential moving average ($44,314) and the critical overhead resistance at $45,400. If they succeed, the BTC/USDT pair could challenge the 200-day simple moving average ($48,220).
Contrary to this notion, if the price turns down from the 20-day EMA or $45,400, it suggests that bears are selling on any rise. The bears will then attempt to drag the pair below the 50-day SMA ($41,789). If successful, the decline could extend to the support line of the ascending channel.
Ether (ETH) broke below the 20-day EMA ($3,224) on April 6, but the bears failed to sustain the lower levels. The bulls bought the dip and pushed the price back above the 20-day EMA, indicating strong demand at lower levels.
If buyers sustain the price above the 20-day EMA, the ETH/USDT pair could revisit the 200-day SMA ($3,487). A break and close above this resistance will indicate the start of a new uptrend. The pair could then rally to $4,150.
Alternatively, if the bulls fail to propel the price above the 200-day SMA, it will indicate that the bears will hold onto higher levels. The pair could then oscillate between the 200-day SMA and the 20-day EMA for a few days.
A break and close below $3,100 could open the doors for a potential drop to the 50-day SMA ($2,915).
Binance Coin (BNB) broke and closed below the 20-day EMA ($425) on April 4, but the lower levels attracted strong buying from the bulls. The price rallied strongly and broke the overhead resistance at $445 on April 7, but the long wick on the day’s candlestick suggests bears are selling on rallies.
If the price breaks below the 20-day EMA, the possibility of a drop to the 50-day SMA ($399) increases. The flat moving averages and the RSI near the middle suggest that the bullish momentum has weakened. A break below the 50-day SMA will bring the large range between $350 and $445 into play.
On the other hand, if the price recovers from the 50-day SMA, the bulls will make another attempt to push the BNB/USDT pair towards the 200-day SMA ($468). The pair could then trade between these two moving averages for a few days.
The bulls halted the decline at the 20-day EMA ($114) on April 6 but failed to push Solana (SOL) back above the overhead resistance at $122. This suggests that bears are active at higher levels.
If the price continues lower and breaks below the 20-day EMA, the next stop could be $106. If this level cannot be sustained either, the SOL/USDT pair could drop to the 50-day SMA ($97). Such a move suggests that the pair could remain range bound between $81 and $122 for a few days.
Contrary to this assumption, if the price rises from the current level and breaks above $122, the bulls will make another attempt to clear the barrier at the 200-day SMA ($149).
Ripple (XRP) broke and closed below the 50-day SMA ($0.78) on April 6, suggesting that the bears are making a comeback. The bulls attempted to push the price back above the 50-day SMA, but the bears are not ready to give way.
The 20-day EMA ($0.81) has started turning down and the RSI is floating in negative territory, indicating an advantage for the sellers. If the price stays below the 50-day SMA, the bears will attempt to extend the decline by dragging the XRP/USDT pair below $0.75. If they do, the next stop could be $0.70.
Contrary to this assumption, the bulls will attempt to push the pair to the 200-day SMA ($0.88) if the price rises from the current levels.
Cardano (ADA) broke through and closed below the 20-day EMA ($1.08) on April 6. The bulls bought the decline but are struggling to push the price back above the 20-day EMA.
If the price fails to sustain the 20-day EMA, the bears will attempt to sink the ADA/USDT pair below the 50-day SMA ($0.96). If they succeed, the pair could drop to the strong support at $0.74.
Alternatively, if the price surges and sustains above the 20-day EMA, the bulls will attempt to clear the overhead barrier at $1.26. Such a move will complete a cup and handle pattern and signal the start of a possible new uptrend. The pair could initially scale the 200-day SMA ($1.45) before recovering to $1.60.
Terra’s LUNA token corrects in an uptrend. The price attempted a bounce off the 20-day EMA ($102) but the bears continue to sell higher levels. This pulled the price below the 20-day EMA today.
The flattening 20-day EMA and the RSI near the midpoint suggest that the bulls are losing their footing. If the price stays below the 20-day EMA, selling might accelerate and the LUNA/USDT pair could drop to the 50-day SMA ($88). The bulls are expected to defend this level, but if they fail in their quest, the next stop could be $82.
Conversely, if the price turns up from the current level and scales above the 20-day EMA, it will indicate that bulls will continue to buy dips. The pair will then make another attempt to break the all-time high of $119 and resume the uptrend.
Related: Near Protocol sees Terra-like price rally after new $350M funding
Avalanche (AVAX) tumbled below the 20-day EMA ($89) and 200-day SMA ($84) on April 6, but the bulls successfully defended the 50-day SMA ($82). This suggests traders continue to accumulate on dips.
The buyers will now attempt to push and sustain the price above the 20-day EMA. If successful, the AVAX/USDT pair could rally to the overhead resistance at $99. This is an important level to watch as a break and close above it could open the doors for a possible rally to $117 and near $127.
Alternatively, if the price turns down from current levels or overhead resistance and falls below the 50-day SMA, the pair could drop to strong support at $65. The flat moving averages and the RSI near the midpoint give neither the bulls nor the bears a clear advantage.
After the sharp reversal from $23, Polkadot (DOT) is currently attempting to stay above the 50-day SMA ($19). If buyers push the price above the 20-day EMA ($21), a retest of the overhead resistance is likely.
The flat moving averages and the RSI just below the midpoint are signaling possible range-bound action in the short-term. If the price turns down from the 20-day EMA and breaks below the 50-day SMA, selling might intensify and the DOT/USDT pair could drop to the strong $16 support.
The bulls need to clear the $23 barrier to signal the start of a possible new uptrend. A close above $23 could open the way for a possible upside move to the 200-day SMA ($29).
Dogecoin (DOGE) tumbled sharply from the overhead resistance at $0.17 on April 6, but a positive sign is that the bulls held support at the 20-day EMA ($0.14).
The 20-day EMA is gradually continuing to rise and the RSI is in positive territory, indicating a slight advantage for buyers. The bulls will make another attempt to push the DOGE/USDT pair above the 200-day SMA ($0.18). If successful, the pair could start an upward move to $0.22.
On the contrary, a slight recovery indicates weak demand. The bears will then attempt to sink the price below the moving averages and challenge the strong support at $0.10.
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.
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