btc, NEAR, FTT, ETC and XMR are trying to recover from strong support levels, offering to buy on dips.
Bitcoin (BTC) fell from a high of $47,200 on April 5 to a low of $42,107 on April 8, indicating a possible sell-off by short-term traders who may have preferred to take profits. However, price action still remains in a tight range over the weekend, suggesting that supply and demand are in balance.
Although the Crypto Fear & Greed Index is in the zone of fear, bitcoin whales on the Bitfinex crypto exchange remained unfazed and continued to buy BTC.
Interestingly, one major investor continued to buy $1 million worth of bitcoins every day without trying to time the market using an average dollar value strategy.
Daily view of cryptocurrency market data. Source: Coin360
Another whale who took advantage of the downturn to add more bitcoin to their existing stash was Terra. This week, a wallet associated with Luna Foundation Guard received 4,130 BTC, bringing its total holdings to 39,897.98 BTC.
Can bitcoin rise strongly on buying whales? Will the selected altcoins rise in the short term? Let’s take a look at the charts of the top 5 cryptocurrencies that could do well if the mood improves.
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Bitcoin bounced off the $42,594 support on April 7, but the bulls failed to clear the barrier at the $43,922 20-day exponential moving average (EMA) on April 8. This may have prompted a sale by dealers who pushed the price below $42,594 to maintain.
BTC/USDT daily chart. Source: Trading View
With a small plus, the bulls are trying to protect the 50-day simple moving average (SMA) of $42,620. If the bulls push and hold the price above the 20-day exponential moving average of $43,923, it would increase the likelihood of a short-term range move. The BTC/Tether (USDT) pair can then fluctuate between the 50-day SMA and the 200-day SMA of $48,219 for several days.
Conversely, a weak bounce off the 50-day SMA indicates no aggressive buying at current levels. The bears will then try to take advantage of this opportunity and push the pair below the 50-day SMA. If successful, the pair may fall to the psychological level of $40,000, and if this level is also broken, then the next stop may be the support line of the rising channel.
4-hour BTC/USDT chart. Source: Trading View
The 4-hour chart shows that the recovery from the $42,594 support has stalled on the 20-EMA. This suggests bear selling at higher levels.
The 20-EMA is sloping down and the Relative Strength Index (RSI) is in negative territory, indicating that the sellers are in the lead.
If the price reverses and drops below $42,000, the selling could pick up. The pair could then drop to $40,000 where buyers could try again to stem the decline.
Alternatively, a break and close above the 20-EMA could open the door for a possible upside to the 50-SMA. The bulls need to push and hold the price above $45,400 to gain the upper hand.
The near protocol (NEAR) reversed sharply down from the tough upper resistance at $20 on April 8, and the long wick on the daily candle suggests that the bears are aggressively defending the upper resistance.
Daily NEAR/USDT chart. Source: Trading View
The NEAR/USDT pair could drop to the 20-day EMA of $15, which could be strong support. If the price recovers from this level, it will mean that the bulls will continue to buy on dips. Then the bulls will make another attempt to push the pair to a new all-time high. A rising 20-day EMA and RSI in positive territory suggest upside potential for buyers.
Contrary to this opinion, if the price falls below the 20-day EMA, it suggests that traders may take profits aggressively. This could open the door to a potential drop to the 50-day SMA at $12.
NEAR/USDT, 4-hour chart. Source: Trading View
On the 4-hour chart, the price repeatedly bounced just below the 50-SMA. This suggests that buyers will continue to focus on falls. If the price moves up from the current level and above de