Bitcoin, NEAR, FTT, ETC, and XMR are attempting to bounce off their strong support levels, signaling buying on dips.
Bitcoin (BTC) fell from a high of $47,200 on April 5 to a low of $42,107 on April 8, signaling a potential sell-off by short-term traders who may have preferred to lock in their gains. However, price action remains stuck in a tight range over the weekend, indicating that supply and demand are in balance.
Although the Crypto Fear & Greed Index is in the fear zone, the Bitcoin whales on Bitfinex remained unfazed and continued to buy BTC.
Interestingly, one big investor continued to buy $1 million worth of Bitcoin each day, without attempting to time the market, using the dollar-cost averaging strategy.
Another whale that took advantage of the drop to add more Bitcoin to its current holdings was Terra. This week, the wallet associated with the Luna Guard Foundation added 4,130 bitcoins, bringing its total holdings to 39,897.98 BTC.
Will the Bitcoin Price Bounce Hard Due to Whales Buying? Will some altcoins rise in the short term too? Let’s study the charts of the top 5 cryptocurrencies that could do well if the market sentiment improves.
BTC/USDT
Bitcoin bounced off the support at $42.594 on April 7, but the bulls were unable to break above the 20-day EMA ($43.922) on April 8. This may have attracted selling by traders, which drove the price below the $42.594 support.
On a positive note, the bulls are attempting to defend the 50-day SMA ($42,620). If the bulls push and sustain the price above the 20-day exponential moving average ($43.923), it will increase the chance of a range action in the near term. The BTC/USDT pair could then range between the 50-day and 200-day SMA ($48.219) for a few days.
Conversely, a weak bounce off the 50-day SMA will suggest a lack of aggressive buying at current levels. The bears will try to take advantage of this opportunity and drag the pair below the 50-day SMA. If they succeed, the pair could drop to the psychological level of $40,000 and if this level also cracks, the next stop could be the support line of the ascending channel.
The 4-hour chart shows that the bounce from the support at $42.594 fizzled out at the 20 EMA. This indicates that the bears are selling at the higher levels.
The 20-day EMA is sloping down and the RSI is in the negative zone, which indicates an advantage for sellers.
If the price turns down and breaks below $42,000, the selling could intensify. Then, the pair could drop to $40,000, where the buyers could once again try to stop the decline.
On the other hand, a breakout and close above the 20 EMA could open the doors to a possible rally towards the 50 EMA. The bulls will have to push and hold the price above $45,400 to gain the upper hand.
NEAR/USDT
Near Protocol (NEAR) turned down sharply from the strong overhead resistance of $20 on Apr 8 and the long wick of the daily candle suggests that the bears are aggressively defending the overhead resistance.
The NEAR/USDT pair could drop to the 20-day EMA ($15), which could act as a strong support. If the price bounces off this level, it will suggest that the bulls are still buying the dips. Then the bulls will make one more attempt to push the pair to a new all-time high. The rising 20-day EMA and the RSI in positive territory suggest an advantage for the buyers.
Contrary to this assumption, if the price breaks below the 20-day EMA, it will suggest that traders may be taking profits in a hurry. That could open the doors to a potential drop to the 50-day EMA ($12).
The 4-hour chart shows that the price has repeatedly bounced just below the 50-day SMA. This indicates that buyers continue to accumulate on dips. If the price turns up from the current level and breaks above the 20 EMA, the bulls will once again try to push the price towards $20.
Conversely, if the price turns lower and sustains below $16, short-term traders might rush to close their positions. This could take the pair towards $14.50. If this level breaks, it will suggest that the bears are back in the driver’s seat.
FTT/USDT
FTX Token (FTT) broke out and closed above $49 on March 24, but the bulls were unable to convert the level into support during the pullback. The price slipped below the 200-day SMA ($47) and has reached the 50-day SMA ($45).
On the positive side, the buyers are trying to defend the 50-day SMA. If the bulls break back above the 200-day SMA and the overhead resistance at $49, this will suggest strong buying at lower levels.
The bullish momentum could pick up on a breakout and close above $54. The FTT/USDT pair could then rally to the pattern target of $66.
Conversely, if the price fails to break above the 200-day SMA, the possibility of a break below the uptrend line of the triangle increases. If this happens, the pair could drop to $40 and subsequently to $37.
The 4 hour chart shows that the pair has been falling within a descending channel pattern. Although the bears dragged the price below the support line of the channel, they could not sustain the lower levels. This suggests that the break below the channel may have been a bear trap.
If the bulls push and hold the price above the 20 EMA, the pair could rally to the 50 EMA. This level could act as resistance again, but if the bulls break above it, the next stop could be the trend line. down. A breakout and close above this barrier could signal a possible change in trend.
This positive view will be invalidated if the price turns down from the current level and breaks below $44.
ETC/USDT
Ethereum Classic (ETC) formed a double bottom pattern as it broke out and closed above the overhead resistance of $38. The price then rallied to the pattern target of $52 on Mar 29, where profit-taking ensued. . This brought the price to the breakout level at $38.
The buyers will try to turn the breakout level of $38 into support. If they succeed, this will suggest a change in sentiment from selling rallies to buying dips.
If the price turns up from the current level or rebounds from $38 and breaks above $45, it will suggest that the correction may be over. The buyers will once again try to push the ETC/USDT pair towards $53. A breakout and close above this level will signal a resumption of the upside move.
This positive view will be invalidated if the price continues to decline and breaks below the 50-day SMA ($35).
The 4-hour chart shows that the pair bounced sharply from the $38 level, but the bulls are struggling to sustain the price above the 20 EMA. This indicates that the bears are selling at higher levels.
A small positive has been that the bulls have not given up much ground since the 20-day EMA. This increases the possibility of a breakout above this resistance. If this happens, the price could go up to the 50-day SMA. A breakout and close above this resistance would open the doors for a possible move higher to $48 and then $53.
Contrary to this assumption, if the price breaks below $38, the selling could intensify and the pair could drop to $32.
XMR/USDT
Monero (XMR) signaled a potential trend reversal as it broke out and closed above the downtrend line. Although the bears tried to push the price back below the downtrend line, the bulls did not budge.
The bears are attempting to cap the rally at the immediate resistance at $239, but the long tail of today’s candle shows buying at the lower levels. The 20-day EMA ($216) on the upside and the RSI in the positive territory indicate an advantage for the buyers.
If the buyers sustain the price above $239, the XMR/USDT pair could continue to pick up momentum and rally to $255.
On the other hand, if the price turns down from the current level, it will suggest that the bears are aggressively defending the overhead resistance at $239. A breakout and close below the 20-day EMA will be the first sign of momentum. bull is weakening. Then the pair could drop to the 50-day EMA ($190).
The pair has been in a gradual uptrend for the past few days. The failure of the bulls to sustain the price above $239 attracted short-term traders to take profits, but the bears were unable to drag the pair below the 20 EMA. This suggests strong buying below. .
If the buyers push and sustain the price above $239, the upside move could gain momentum. On the other hand, if the price breaks back below $239, the pair could drop to $209 and remain in a range between these two levels for a few days.
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