The listing of Coinbase (COIN) on the NASDAQ stock exchange may ultimately help to spread cryptocurrency and attract a large number of institutional investors. However, this is unlikely to happen right away. In the first days after the listing, volatility may be high as Wall Street tries to value Coinbase. It can also increase the volatility of cryptocurrencies.
Sharp fluctuations in the price of Bitcoin (BTC) may also lead to the liquidation of current positions in the derivatives market. The huge open interest rate of $ 27 billion in Bitcoin futures and the $ 8 billion open interest in Ether (ETH) futures indicate that the increase in volatility could stop many traders.
Daily indicators in the cryptocurrency market. Source: Coin360
PlanB, an analyst on the popular Bitcoin stock price model, quoted the monthly relative strength index (RSI) and said that the current reading is above 92 highs, but below 95 levels recorded in the previous bull. Markets for 2017, 2013 and 2011.
According to PlanB, Bitcoin will rise to $ 92,000 by the end of April to push the RSI towards 95.
Traders will closely monitor the pricing behavior of the COIN coin and are likely to spot this short-term trend. Let’s explore the top 10 cryptocurrency charts to identify critical support and resistance levels.
BTC / USDT
On April 13, Bitcoin broke over the stiff upper resistance to $ 61825.84, indicating a resumption of the trend. The sharp rally also completed the breakout from the inverted head and shoulders pattern aimed at $ 69,540.
BTC / USDT daily chart. Source: TradingView
A 20-day bullish exponentially moving average ($ 58,713) and an RSI above 63 indicate that the bulls have an edge. However, the BTC / USDT pair is unlikely to emerge from the vertical position.
Usually, after distributing the critical level, the price corrects and tests the level. In this case, the pair may fall to $ 60,000. If the bulls manage to turn this level into a support level, the pair can resume the trend.
Conversely, if the bears fall under the 20-day EMA, many of them may be taken into custody. This could lead to increased sales and the pair could break the 50-day simple moving average ($ 55,241). Such a move will increase the likelihood of a deeper correction.
ETH / USDT
On April 13, ether broke out over the $ 2200 resistance, after which the trend resumed. The 20-day bullish EMA ($ 2040) and RSI above 70 indicate that the path to least resistance is up.
ETH / USDT daily chart. Source: TradingView
The bulls will now try to push ETH / USDT towards the next target of $ 2,618.14.
Contrary to this assumption, if the pair falls from the current level, it may fall to the 20-day moving average. If the price bounces off this support, it will indicate that the bulls are buying on the downturns, as they expect a bigger rally on the rally.
Instead, a break below the 20-day EMA will indicate that traders are rushing to make a profit. This may push the price towards the trend line.
BNB / USDT
The Binance currency (BNB) is currently in a correction phase following a sharp upward trend that lifted it from $ 233.81 on March 26 to $ 638.56 on April 12, which is 173% in a short time. The first strong support on the downside is the 38.2% Fibonacci retracement level of $ 483.95.
If the price bounces off $ 483.95, it indicates that the feeling is still positive and that the bears are gaining momentum in times of recession. Buyers will try to resume winnings by pushing the price above $ 638.56. If successful, BNB / USDT could start the journey at $ 888.70.
Today’s Doji candlestick pattern indicates turns among bulls and bears. If this uncertainty reverses and the price falls below $ 483.85, the pair may fall to the 20-day moving average ($ 417), which is likely to provide strong support.
XRP / USDT
The XRP’s strong bullish move continued with a break above $ 1.50 on April 13, reaching an intraday high of $ 1.96 today. However, the price turned sharply, indicating that the bears are aggressively defending the psychological $ 2 level.
The first support on the back is the 38.2% Fibonacci retracement level of $ 1.43. A strong rebound from this support will indicate that the trend is still up and that traders are buying in downturns. The bulls will again try to resume the bullish move, pushing the price above $ 1.96.