Bitcoin and some select altcoins continue to face selling at higher levels, a sign that the bears have not given up yet.
The cryptocurrency market witnessed strong volatility on April 26 amid rumors that large sums of Bitcoin (BTC) were moving from wallets linked to the defunct Mt. Gox cryptocurrency exchange and the United States government. One small positive is that Bitcoin and some altcoins held their respective support levels.
After the strong rise of Bitcoin in 2023, some traders seem to be planning to take profits. Coinglass reported that the Bitcoin balance on Binance skyrocketed by 50,000 Bitcoin in the last 30 days.
Although this could add to the pressure in the near term, bulls can take solace that the surge is not identical across exchanges. Coinglass said the aggregate Bitcoin balance increase across all exchanges was 14,000 Bitcoin.
The next major event for the market will probably be the US Federal Reserve meeting on May 2-3. The FedWatch Tool projects a 90% chance of a 25 basis point rate hike at the meeting. Most analysts expect this to be the last rate hike before a turnaround later in the year.
Could Bitcoin and some altcoins break out of their respective resistance levels and resume their rally? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin formed a long-legged doji candlestick pattern on April 26, indicating indecision between bulls and bears about the next directional move. This uncertainty was resolved to the upside with a close above the 20-day exponential moving average ($28,619) on April 27.
The bears will try to push the pair below the 20 day EMA, while the bulls will try to turn this level into support. If the buyers are successful, The BTC/USDT pair will try to challenge the resistance zone between $31,000 and $32,400. This zone will witness a tough battle between the bulls and the bears. This zone will witness a tough battle between the bulls and the bears.
However, if the pair turns below the 20 day EMA, this would indicate that sentiment is turning negative and investors are selling rallies. The pair could retest the strong support at the 50-day simple moving average ($27,657). A break and close below this level could open the doors for a decline to $25,250.
ETH Price Analysis
The bulls pushed Ether (ETH) above the 20-day EMA ($1,905) on April 26-27, but failed to reach the psychological $2,000 level. This suggests that the bears are trying to stop the rally below $2,000.
The 20-day EMA has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. This points to a possible action within a range between $2,000 and $1,785 for a few days.
If this occurs, it will be a positive sign because it indicates that the bulls are not rushing to take profits. This will improve the prospects for a possible rally to $2,200. This positive view will be invalidated if the price turns lower and breaks below $1,785. The ETH/USDT pair could then break down to the 61.8% Fibonacci level of $1,663.
BNB Price Analysis
The bulls pushed BNB (BNB) above the overhead resistance of $338 on April 26, but failed to hold higher levels, as seen on the long wick of the day’s candle.
The bulls tried to clear the $338 hurdle again on April 27, but the bears did not budge. The selling gained momentum on April 28 and the bears are attempting to sink the price below the 50-day SMA ($321). If they succeed, the BNB/USDT pair could drop as low as $300 and then as low as $280.
Instead, if the price bounces from the current level, it will indicate that the bulls have not given up and are buying dips. The bears will have to clear the $350 hurdle to signal the start of a new uptrend towards $400.
XRP Price Analysis
XRP (XRP) bounced off the $0.43 support on April 26, indicating that the bulls are keeping a fierce eye on this level.
The price has reached the 20-day EMA ($0.48), which is an important level for bears to defend in the short term. If the price turns lower from this level, the sellers will try again to pull the price below $0.43. If they succeed, the XRP/USDT pair could drop as low as $0.36.
Conversely, if the buyers kick the price above the 20-day EMA, the pair can reach the resistance line. A break and close above this level will suggest that the short-term corrective phase is over. Next, the pair will attempt a rally to $0.54 and $0.58 thereafter.
Cardano Price Analysis
Cardano (ADA) bounced off the 50-day SMA ($0.38) on April 25-26, indicating that buyers are trying to initiate a rally from this support.
The ADA/USDT pair has reached the neckline of the inverse head and shoulders pattern, where the bears are trying to stop the rally. If the buyers outweigh the sellers and sustain the price above the neckline, the pair should rally to $0.46.
Conversely, if the pair retraces from the neckline, the bears will try to prevent the reversal pattern from forming. The sellers will try again to sink the pair below the 50-day SMA. If they do, the pair could drop as low as $0.34.
Dogecoin Price Analysis
The bears pulled Dogecoin (DOGE) below support near $0.08 on April 26, but were unable to build on the breakout. Buyers bought the dip and pushed the price back above the 50-day SMA ($0.08) on April 27.
The next resistance to watch is the 20-day EMA ($0.08) and below the downtrend line.. Buyers will have to push the price above the downtrend line to clear the way for a potential rally to the $0.10-$0.11 resistance zone.
In the meantime, the bears likely have other plans. They will try to sink the price below the support near $0.08. If they do, the DOGE/USDT pair could slide towards the vital support near $0.07. The bulls will protect this level with all their might.
Polygon Price Analysis
The long tail of the April 25-26 Polygon (MATIC) candlestick shows that the bulls are defending the $0.94 support vigorously, but the bears have not given up yet.
The dip of the 20-day EMA ($1.05) and the RSI in the negative territory indicate that the bears have the upper hand. The sellers will try to stop the rally in the area between the 20 day EMA and the resistance line.
If the price turns lower from the resistance line, it will signal the formation of a possible descending triangle pattern, which will complete on a break below $0.94.. If this support breaks, the MATIC/USDT pair risks falling as low as $0.69.
Solana Price Analysis
Solana (SOL) tried to break out of the tight range it was trading in on April 26, but failed. Bulls try again to resolve uncertainty in his favor on April 28.
If the price breaks above the immediate resistance of $23.18, it will indicate that the bulls have absorbed the offer. So, The SOL/USDT pair will try to rally towards the tough overhead resistance of $27.12, which remains the key level for bulls to break above. If they succeed, the pair could start a new move higher and reach $39.
If the bears want to prevent the rally, they will have to pull the pair below the $18.70 support. That can sink the pair to the next support at $15.28.
Polkadot Price Analysis
The bears successfully defended the moving averages on April 26, but were unable to sustain the dip below the $5.70 support. This indicates that Polkadot (DOT) is finding buyers at lower levels.
The DOT/USDT pair can range from $5.70 to the 50-day SMA ($6.20) for some time. If the consolidation resolves to the downside, the selling could intensify and the pair could drop as low as $5.15. This level is likely to attract buyers.
Alternatively, if the buyers push the price above the 50-day SMA, it will suggest that the bulls are in for a comeback. The pair may first rally to $7 and if this resistance is scaled, the rally could extend to $7.90.
Litecoin Price Analysis
Litecoin (LTC) witnessed a hugely volatile day on April 26, indicating that bulls and bears tried to gain full control, but failed.
Typically, days of high volatility are followed by a range contraction for a few days. The flat moving averages and the RSI just below the midpoint suggest a short-term range-bound action. The LTC/USDT pair may range from $85 to $96 for some time.
A break above $96 or below $85 will start the next leg of the trend. If the bears sink the price below $85, the pair can drop to $75. On the other hand, a rally above $96 would open the doors for a possible rally towards $106.
This article does not contain investment advice or recommendations. All investments and trades involve risk, and readers should do their own research when making a decision.