Bitcoin and some altcoins are trying to rally, but the most likely outcome of a breakout is strong selling at higher levels.
Bitcoin (BTC) continues to trade below $40,000 as the bears attempt to turn the level into resistance. A rising US Dollar Index (DXY), which is usually inversely proportional to Bitcoin, favors sellers. It’s not all doom and gloom, however, as bitcoin bulls appear to be getting cues from the Nasdaq (NDX) floating near positive territory.
Although risky assets have rallied over the past few days, Bitcoin hodlers are focused on long-term upside and ignore short-term weakness. Glassnode data shows that bitcoin supply, which hasn’t changed in at least a year, surpassed “64%” for the first time.
Cryptocurrency market daily indicators. Source: Coin360
Speaking to Bloomberg, SkyBridge Capital founder Anthony Scaramucci said the company is bullish on the crypto markets “for three to five years.” Now the hedge fund plans to reposition itself by placing the majority of its holdings under digital wealth management and becoming a “leading crypto wealth manager and advisor”:
Could Another Drop in Bitcoin and Altcoins Attract Long-Term Investors? What are the key levels to pay attention to? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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Bitcoin/US Dollar
Bitcoin fell below the immediate support at $38,536 on April 2, but the bears failed to cement their lead. The long tail of the daily candle indicates strong buying near the support line of the rising channel.
BTC/USDT daily chart. Source: Trade View
Buyers will now attempt to push the price above the 20-day exponential moving average (EMA) ($40,974). If they succeed, the BTC/USDT pair could surge to $43,000.
Conversely, if the price reverses down from the 20-day EMA, it would mean that sentiment remains negative and the bears are selling on the rally to strong upper resistance levels. Then the pair can drop to the support line of the channel.
A break and close below the channel could accelerate selling and the pair could drop to a strong support zone between $34,300 and $32,917. The bulls are expected to defend this level with all their might.
ETH/USDT
Ether (ETH) broke out and closed below the 50-day simple moving average (SMA) of $3,022 on April 21, indicating weakness. Buyers attempted to push the price back above the 50-day SMA on April 22 but failed, suggesting that the bears had reversed the resistance level.
Daily ETH/USDT chart. Source: Trade View
On April 25, the bears brought the price below the immediate support at $2,883, but the long tail of the daily candle suggests that the bulls are buying aggressively at the lower levels. If buyers push the price above the 20-day EMA ($3,045), ETH/USDT could rally to $3,200 and then the 200-day SMA ($3,477).
Conversely, if the price breaks away from the psychological $3,000 level, it would mean that the bears continue to sell at higher levels. If the pair falls below $2,797, it could drop to an uptrend line.
BNB/USDT
BNB broke below the immediate support at $391 on April 25, but the long tail of the daily candle shows bulls buying lower levels.
BNB/USDT daily chart. Source: Trade View
If the price holds and closes above $391, the bulls will attempt to push the BNB/USDT pair above the 20-day EMA ($411). If they succeed, the pair could surge to an upper resistance level at $445.
On the contrary, if the price deviates from the current levels or the 20-day EMA and falls below $382, it would mean that the bears are selling on the rally. This could propel the pair towards strong support at $350. The descending 20-day EMA and the Relative Strength Index (RSI) in negative territory are suggesting that the bears are prevailing.
XRP/USDT
Ripple (XRP) broke below the strong support at $0.69 on April 25, suggesting that the range has cleared in favor of sellers. The 20-day EMA ($0.74) has turned down and the RSI is near the oversold zone, indicating that the bears are in control.
Daily XRP/USDT chart. Source: Trade View
If the price stays below $0.69, XRP/USDT could look to the immediate
