Bitcoin (BTC) uncertainty near all-time highs indicates that the bulls and bears are waiting for a catalyst to start the next trend move.
The bulls are looking for a positive catalyst to push the price above general resistance. On the contrary, the bears may wait for signs of weakness to confirm a short term top.
One stimulating event is the listing of Coinbase CoIN on the Nasdaq Stock Exchange on April 14th. The successful listing is likely to be backed by cryptocurrencies as it may indicate an increase in the adoption of the cryptocurrency by major investors in the future. On the contrary, the warm welcome to enter Coinbase can spur bears.
The waves of the Onchain HODL indicator indicate that long-term investors and short-term speculators are not reaping profits because they expect higher levels in the future. An increase in HODLers is usually a bullish sign, but it can become a burden if new money runs out and the market begins to change direction.
If this happens, the short-term speculators may be the first to panic and dump their positions. It can hit swing traders’ stops and spur selling, and is an innovative way of deeper bounce.
When the markets await a catalyst, let’s break down the charts of the top 5 cryptocurrencies that could benefit from bullish sentiment.
BTC / USDT
On April 10, Bitcoin crossed the $ 60,000 resistance level, reaching $ 61,301.21, with just $ 61,825.84 for an entire day. However, the bulls still had a hard time maintaining the price above $ 60,000, indicating strong downside resistance.
The price has not yet closed above $ 60,000, which means that the inverted head and shoulders pattern is not yet complete.
The bears will try to take advantage of a small window of opportunity and bring the price down to a 20-day exponential moving average ($ 57,513). A strong bounce from this support would increase the probability of a breach over $ 61,825.84.
If this happens, the BTC / USDT may initiate the next phase of the uptrend, which could push the price towards $ 69,540 then $ 79,566.
On the other hand, if the bears dip below the 20-day moving average, the pair may challenge the crucial support of the 50-day SMA ($ 54,723). A break of this support will be the first sign of a possible change in direction.
The 4-hour chart shows that the bears are active for over $ 60K. However, in a positive sign, the bulls prevented the price from staying below the 20-EMA. This means that bulls buy at every smaller drop.
If the bulls manage to push the price above $ 60,000 again, the pair may challenge an all-time high. Conversely, if the bears dip below the 20-EMA, a drop to $ 57,600 is possible. If that support stops, the next stop could be $ 55,600.
XLM / USDT
Stellar Lumens (XLM) broke the $ 0.60 resistance today and rose to a new 52-week high of $ 0.65. Every time an asset reaches a new 52-week high, it is a sign of strength because it shows that traders are in a hurry to buy as they expect the price to rise further.
The high of the 20-day moving average ($ 0.46) and the Relative Strength Index (RSI) in the overbought zone indicate that the bulls have gained the upper hand. If the bulls manage to push the price above $ 0.65, the XLM / USDT pair could initiate the next phase of the trend, which could reach $ 0.72 then $ 0.85.
However, the long wick in today’s candle indicates that the bears have other plans. They are trying to catch the aggressive bulls and push the price below $ 0.60. If the bulls prevent the price from falling below $ 0.55, this indicates an accumulation of fall. This will make you feel positive.
Contrary to this assumption, it is possible to reduce the 20 day moving average if the bears push the price below $ 0.55. A breakout without this support could indicate that the bulls have lost control.
The 4 hours chart shows that the pair closed above $ 0.60, but the bulls were unable to develop this strength. The bears jumped at the opportunity and pushed the price below the $ 0.60 breakout level.
However, if the bears fail to bring the price down to the 20-EMA, then that indicates that the bears are building up on the dip. This will increase the likelihood that this step will resume. On the contrary, a breakout through the 20 day moving average could tip the gains in favor of the bears.