Bitcoin (BTC) is attempting to hold above its next support level and traders are watching to see if the price can remain strong and close above the 2022 annual open price of $46,200 for the second week in a row.
According to Sam Stovall, chief investment strategist at CFRA, April has historically been the best-performing month of the year for the S&P 500. If history repeats itself and the close correlation between US stock markets and Bitcoin continues, it could bode well for crypto markets in the near-term.
Another sentiment booster could be that the 19 million bitcoin came into circulation on April 1st. The crypto markets will have to wait a long time for the remaining 2 million Bitcoin, as the last Bitcoin is expected to be mined by 2140. This could shift the focus that there is only a small amount of bitcoin left to mine and growing demand could lead to shortages and push up prices.
Could Bitcoin hold above its critical support, and if so, will altcoins rally? Let’s study the charts of the top 5 cryptocurrencies that could extend their recovery in the short term.
Bitcoin is witnessing an uphill battle between the bulls and the bears near the key $45,400 level. The bears attempted to sink and sustain the price below this level, but the bulls held their ground. This suggests that the bulls are attempting to reverse the level towards support.
The rising 20-day exponential moving average ($44,333) and the Relative Strength Index (RSI) in positive territory indicate that the path of least resistance is up. The critical level to watch on the upside is the 200-day simple moving average ($48,276).
If bulls propel the price above this barrier, the BTC/USDT pair is likely to gain momentum. The rally might face minor resistance on a psychological level at $50,000, but if that level is breached, the next stop could be $52,000.
Contrary to this assumption, if the price turns down from the current levels or the overhead resistance, the bears will again attempt to drag the pair below $45,400 and the 20-day EMA. In that case, the pair could drop to the 50-day SMA ($41,615).
The 4-hour chart shows that the price has corrected since it hit the resistance line of the ascending channel. Bullish recovery attempts are facing stiff resistance at the downtrend line. If bulls push and sustain the price above the downtrend line, the pair could rally to the channel’s resistance line.
A break and close above the channel could signal the resumption of the uptrend. Alternatively, if the price turns down from the downtrend line, the bears will attempt to sink the pair to $44,000. If this level breaks, the decline can extend to $42,594.
VeChain (VET) surged above the overhead resistance at $0.07 on Mar 27, but the bears blocked the rally at the 200-day SMA ($0.09). On a small plus, the bulls have not allowed the price to break below the $0.07 breakout level.
If the price turns up from the current level, the bulls will make another attempt to clear the overhead barrier at the 200-day SMA. If they succeed, this indicates a possible trend reversal. The VET/USDT pair could then rally to $0.10 and later to $0.13.
The rising 20-day EMA ($0.06) and the RSI in positive territory are indicating an upside for buyers. This optimistic view will be invalidated if the price turns down and falls below the 20-day EMA. Such a move could drag the pair to the 50-day SMA ($0.05).
The 20-EMA has flattened out and the RSI is near the middle of the 4-hour chart, indicating an equilibrium between supply and demand. If the price scales above $0.08, the bulls will attempt to push the pair above $0.09. If they do, the pair could continue its upward move.
On the other hand, if the price turns down and breaks below the 50-SMA, the pair could drop to the critical $0.07 level. If the bulls flip this level to support, the pair will make another attempt to scale above $0.09, but if the $0.07 support breaks, the bears could be back in the game.
Theta Network’s THETA token has been hovering between $2.50 and $4.40 for the past few weeks. The bulls attempted to push the price above the overhead resistance but failed. This suggests that the bears will continue to defend the level aggressively.
If the price fails to drop below $3.80, it suggests that traders are not in a hurry to close their positions as they expect the upward movement to continue. The rising 20-day EMA ($3.54) and the RSI near the overbought zone suggest that the path of least resistance is up.
If buyers can push the price above the overhead zone between $4.40 and the 200-day SMA ($4.77), it will signal the start of a potential uptrend. The THETA/USDT pair could then gain momentum and climb to $6.
Contrary to this assumption, if the price breaks below the 20-day EMA, the next stop could be the 50-day SMA ($3.17). Such a move suggests that the pair could remain range bound for a few more days.
The 4-hour chart shows the bears thwarting repeated attempts by the bulls to push the price above the overhead resistance at $4.40. The 20-EMA has flattened out and the RSI is near the midpoint, indicating an equilibrium between supply and demand.
If the price dips below the 50-SMA, the short-term advantage could tip in favor of the sellers. The price could then drop to $3.50. On the upside, if the price breaks out and sustains above the overhead resistance, the bulls will gain the upper hand.
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THORChain (RUNE) has been trading inside a major descending triangle pattern for several months. The sharp rally of the past few days has pushed the price onto the downtrend line of the triangle where the bears are building up a strong resistance.
If the price turns down from the current levels, the RUNE/USDT pair could drop to the 20-day EMA ($9.75). This is an important level to watch out for because if the price bounces off the 20-day EMA, it will suggest that sentiment remains positive and traders will buy on dips.
This could increase the chances of a break above the downtrend line. When that happens, the bearish triangle setup becomes invalid, which could be a bullish sign. The pair could then rally to $17.
This optimistic view will be negated in the short-term if the price turns down and falls below the 20-day EMA. That could drag the pair down to the 200-day SMA ($7.88).
The 4 hour chart shows the pair facing a strong resistance near $13. On a small plus side, the bulls have not allowed the price to dip below $11 and sustain there. Hence, this becomes an important level to keep an eye on.
If the price breaks below this support, the pair could drop to the next major support at $10. On the other hand, if the price recovers from $11, the buyers will try again to continue the uptrend by pushing the pair above the overhead resistance.
Aave (AAVE) broke out of the downtrend line on March 29th, signaling a possible reversal. The bears tried to halt the rally at the 200-day EMA ($226), but the bulls didn’t give up much ground.
Buying resumed on April 1 and the AAVE/USDT pair broke the 200-day SMA. If the price sustains above the 200-day SMA, it will signal the start of a new upward move.
If bulls push the price above $262, the rally could extend to the psychological $300 level. The bears might offer a strong resistance at this level, but if the bulls clear this barrier, the upside could reach $350.
This optimistic view will be invalidated in the near term if the price turns down and falls below the 200-day SMA. The bears could then drag the price to the 20-day EMA ($187).
The 4-hour chart shows the bulls buying the dips to the 20-EMA. If the bulls push the price above $261.20, the uptrend might resume. This rally could face resistance in the overhead zone between $283 and $300.
The RSI is showing signs of negative divergence, suggesting that the bullish momentum may be weakening. If the price turns down and breaks below the 20-EMA, it will indicate that the short-term bulls may book gains. That could sink the pair to the 50-SMA.
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 move involves risk, you should do your own research when making a decision.
https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-vet-theta-rune-aave BTC, VET, THETA, RUNE, AAVE