Bitcoin and altcoins are trying to rally, but the bulls are likely to face stiff resistance at higher levels.

Bitcoin (BTC) and the major altcoins are attempting to recover from their sharp April 11 plunge. According to a recent weekly report from Glassnode, Bitcoin has seen “a modest amount of investor profit-taking” since mid-February, which “could provide enough headwind for prices.”

While some investors are taking profits, the Luna Foundation Guard, a nonprofit connected to the Terra blockchain protocol, continues to grow its Bitcoin holdings. On April 13, Terra added 2,508 bitcoins to bring its total to 42,406 bitcoins, just short of Tesla’s corporate treasury of 43,200 bitcoins.

Cryptocurrency market daily indicators. Source: Coin360
Larger investors don’t seem to care about the volatility and crash of cryptocurrencies and are taking a long-term view of the situation. Blockchain fund Pantera, which sought to raise $600 million, has amassed about $1.3 billion, indicating huge demand.

Will the bulls be able to withstand the recovery in bitcoin and altcoins? Let’s examine the charts of the top 10 cryptocurrencies to find out.

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Bitcoin/US Dollar
Although Bitcoin fell below the psychological $40,000 level on April 11, the bears failed to build on this momentum. This suggests that the bulls are buying at lower levels.

BTC/USDT daily chart. Source: Trade View
A recovery rally could reach the 20-day exponential moving average (EMA) ($42,967). If the price breaks down from this resistance, it means the bears are selling on the rally. The descending 20-day EMA and the Relative Strength Index (RSI) below 44 indicate a slight advantage for the sellers.

The bears need to sink the price below $39,200 to resume the decline. Then the BTC/USDT pair might drop to the support line of the rising channel. On the other hand, if the price continues higher and breaks the 20-day EMA, the pair could challenge the upper resistance at $45,400.

ETH/USDT
The bulls are attempting to halt the decline in the 50-day simple moving average (SMA) ($2,958). Although Ether (ETH) attempted to rally on April 12, buyers failed to sustain the higher levels.

Daily ETH/USDT chart. Source: Trade View
The bulls are again attempting to extend the April 13 auxiliary rally. The bounce is likely to see a sell off at the 20-day EMA ($3,172). If the price turns down from this level, the probability of a break below the 50-day SMA increases. In this case, the ETH/USDT pair could drop to an uptrend line.

Contrary to this assumption, a breakout of the 20-day EMA would indicate aggressive buying by the bulls. The pair could then attempt a climb to the 200-day SMA ($3,490). The pair may then consolidate between the 50-day SMA and the 200-day SMA for several days.

BNB/USDT
BNB fell below the 50-day SMA ($402) on April 11, but the bears failed to capitalize on this breakout. The bulls aggressively bought the dip and pushed the price above the 50-day SMA on April 12.

BNB/USDT daily chart. Source: Trade View
Buyers are trying to keep the price above the 20-day EMA ($420). If successful, the BNB/USDT pair could rally to the 200-day SMA ($470), where the bears could face stiff resistance. This can keep the price range-bound between the 200-day SMA and the 50-day SMA for several days.

On the other hand, if the price fails to sustain above the 20-day EMA, it will suggest selling at higher levels. The bears will then make another attempt to sink the price below the immediate support at $391. If they succeed, the pair could drop to $350.

SOL/USDT
Solana (SOL) rallied from the 50-day SMA ($99) on April 12, but the bulls failed to push the price above the 20-day EMA ($110). This suggests that the bears are selling above the 20-day EMA.

SOL/USDT daily chart. Source: Trade View
Now the bears will try to sink the price and sustain it below the 50-day SMA. If they succeed, SOL/USDT could drop to strong support at $81. The bulls are expected to vigorously defend this level as a break and close below could restart the downtrend.

Contrary to this assumption, the bulls will make another attempt to clear the false barrier at $122

Source: CoinTelegraph

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