Bitcoin and altcoins could be en route to retest their recent strong support levels as bears try to extend the correction.
Price Analysis
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Bitcoin (BTC) continues to trade inside a large range, suggesting indecision about the next trending move. Analysts trying to predict the direction are enthused by the $1.3 billion of USD Coin (USDC) transferred to Coinbase by whale addresses. Expectations are that the funds will be used to buy Bitcoin and Ether (ETH).
Large investors are not only buying the top two coins by market capitalization. CoinShares head of research James Butterfill said in a recent report based on a survey of 64 institutional investors that 15% of the respondents had invested in Solana (SOL). In comparison, none of the investors held Solana in the firm’s January survey.
Morgan Creek Capital CEO Mark Yusko said in a recent interview with The Wolf Of All Streets podcast that about $300 billion of baby boomers’ wealth is likely to enter into digital assets within 12 months. This inflow could boost the cryptocurrency market capitalization to $6 trillion.
Can buyers thwart attempts by the bears to deepen the correction in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has been trading below the moving averages for the past few days, but the bears are struggling to sink the price to the crucial support at $60,775. This suggests that selling dries up at lower levels.
The price is stuck between the 50-day simple moving average ($67,404) and the vital support at $60,775. The 20-day exponential moving average ($65,542) has started to turn down and the relative strength index (RSI) is just below the midpoint, indicating a minor advantage to the bears.
A break and close below $59,600 could open the doors for a drop to the 61.8% Fibonacci retracement level of $54,298.
This bearish view will be negated in the near term if the price rises above the 50-day SMA. The BTC/USDT pair may then climb to $73,777. This remains the key overhead resistance for the bulls to overcome.
Ether price analysis
Ether has been oscillating between the 20-day EMA ($3,209) and the horizontal support of $3,056 for the past few days.
This tight range trading is unlikely to continue for long. If the price pierces the 20-day EMA, the ETH/USDT pair could rise to the 50-day SMA ($3,436). This level may act as a short-term barrier, but it is likely to be crossed. The pair may then jump to $3,679.
Conversely, if the price turns down and breaks below $3,056, it will suggest that the bears are in command. The pair may then retest the critical support at $2,852. A Break below this level may result in a decline to $2,700.
BNB price analysis
BNB (BNB) has been struggling to reach the overhead resistance of $635, suggesting that the bears are defending the level with vigor.
However, a positive sign is that the bulls have not rushed to the exit. The price may pull back to the moving averages, where it is likely to find support. If the price rebounds off the moving averages with strength, it will enhance the possibility of a break above $635. If that happens, the BNB/USDT pair could surge to $692 and eventually to the pattern target of $775.
On the other hand, if the price slides below the moving averages, it will indicate that the range-bound action may extend for a few more days.
Solana price analysis
Solana (SOL) turned down from the overhead resistance of $162 on April 24, indicating that the bears are active at higher levels.
The 20-day EMA ($153) is sloping down gradually, and the RSI is in the negative zone, indicating that the bears have the edge. The SOL/USDT pair could descend to the solid support at $126. If the price rebounds off this level with strength, it will indicate that the pair may remain sandwiched between $126 and $162 for a while longer.
The first sign of strength will be a break and close above the 50-day SMA ($168). That will open the doors for a possible rally to $205. Contrarily, a break below $126 could sink the pair to $100.
XRP price analysis
XRP (XRP) is trading below the 20-day EMA (0.54) but the bulls are trying to find support at the uptrend line.
If the price bounces off the uptrend line and breaks above the 20-day EMA, it will suggest that the bears are losing their grip. The XRP/USDT pair could then attempt a rally to the 50-day SMA ($0.59) and subsequently to $0.69.
Contrary to this assumption, if the price continues lower and breaks below the uptrend line, it will suggest that the bears are in control. The pair may plunge to $0.46, where the bulls are expected to provide strong support.
Dogecoin price analysis
Dogecoin (DOGE) has formed a symmetrical triangle pattern, indicating indecision between the bulls and the bears.
The downsloping 20-day EMA ($0.16) and the RSI in the negative zone suggest that the path of least resistance is to the downside. If the price skids and maintains below the triangle, the DOGE/USDT pair may tumble to $0.12.
On the contrary, if the price turns up from the current level and breaks above the triangle, it will signal aggressive buying on dips. That improves the prospects of a break above the downtrend line. The pair may then climb to $0.21.
Toncoin price analysis
Toncoin (TON) broke below the ascending channel pattern on April 22 and reached the 50-day SMA ($5.12) on April 25.
The downsloping 20-day EMA ($5.82) and the RSI just below the midpoint suggest that the bears have a slight edge. If the price rebounds off the 50-day SMA, it is likely to face stiff resistance at the 20-day EMA. If the TON/USDT pair turns lower from the 20-day EMA, it will increase the likelihood of a drop below the 50-day SMA. The pair may then drop to $4.50.
This negative view will be invalidated if the bulls push the price back into the channel. Such a move will suggest that the recent breakdown may have been a bear trap.
Related: Here’s what happened in crypto today
Cardano price analysis
Cardano (ADA) turned lower from the 20-day EMA ($0.50) on April 23 and reached the important support at $0.46.
If the price rebounds off the $0.46 level and rises above the 20-day EMA, it will suggest that the correction may be over. The ADA/USDT pair could then rally to the 50-day SMA ($0.59) and later to $0.68.
Instead, if the price continues lower and breaks below $0.46, it will indicate that the bears remain in charge. The pair could then slump to the crucial support at $0.40. A break below this level may resume the downtrend.
Avalanche price analysis
Avalanche (AVAX) turned down from the 20-day EMA ($39) on April 24, but the bears are finding it difficult to pull the price below the uptrend line.
The bulls will have to push and maintain the price above the downtrend line to signal a potential short-term trend change. The AVAX/USDT pair could then attempt a rally toward the 50-day SMA ($47).
This optimistic view will be negated in the near term if the price continues lower and breaks below the uptrend line. That could sink the pair to the $32 to $27 support zone, where buyers are likely to step in.
Shiba Inu price analysis
Shiba Inu (SHIB) has been stuck between the moving averages for the past few days, indicating indecision between the bulls and the bears.
The flattish 20-day EMA ($0.000025) and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. If the price breaks and maintains below the 20-day EMA, it will indicate that the bears have seized control. The SHIB/USDT pair may then slump to $0.000020.
Alternatively, if the price rises and breaks above the 50-day SMA ($0.000027), it will signal that the bulls have overpowered the bears. The pair may then attempt a rally to $0.000033.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
