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According to Bybit results, Bitcoin (BTC) closed the month down 1.98 percent, the first negative close in April since 2015.
In the same month, the price of Ether (ETH) increased by more than 44 percent to a new all-time high above $3,000. This big disparity between the top two cryptocurrencies indicates that economies have stabilised and that Bitcoin’s underperformance is no longer hurting altcoins as often as it used to.
The bullish trend in ether has drawn a lot of buying from traders. According to Bybit data, Ether futures open interest reached $8.5 billion on April 29, up 52 percent from the previous month. This rise has been fueled by experienced traders, who seem to be more optimistic on Ether than institutional buyers, as Cointelegraph contributor Marcel Pechman points out.
The crypto sector’s good growth tends to draw a wide range of buyers. According to the Financial Times, venture capital company Andreessen Horowitz expects to capitalise on this rising market by raising $800 million to $1 billion for a new fund. The inflow of funds into numerous cryptocurrency ventures indicates that buyers are optimistic over the long run.
In an interview with the Baltimore Business Journal, T. Rowe Price CEO William Stromberg said that the crypto space is already in its infancy and that it could “take years to really unfold.”
With Ether leading the altcoin charge, let’s look at the top-5 cryptocurrencies that may remain bullish in the short term.
Bitcoin soared above its moving averages on April 30 but the bulls have not been able to build on this strength. The Doji candlestick pattern on May 1 and the drop below the 50-day simple moving average ($56,833) today suggests the bears are selling at higher levels and have not given up.
If sellers drive the price below the 20-day exponential moving average ($55,723), the BTC/USDT pair could fall to $52,323.21 and then to $50,460. The flat moving averages and the relative strength index (RSI) near the midpoint indicate a supply-demand equilibrium. This could keep the pair in a range for a few days longer.
If the pair bounces off the 20-day EMA and climbs past $58,469.09, this opinion will be invalidated. This will imply that the bulls are buying on any small dip. The pair will then rebound to $61,825.85, where the bulls would face tough opposition from the bears.
While confirmation is still pending, the pair appears to be forming the right shoulder of a potential head and shoulders topping shape. This set would end with a break below the neckline. By then, traders should be vigilant but should not act prematurely in expectation of a breakdown.
The 4-hour chart reveals that the bulls moved the market past the $57,500 resistance but were unable to hold it there. The bears have dragged the price down below the stage and are attempting to smash through the 20-EMA support. If this occurs, the pair will fall to the 50-SMA.
A quick bounce from this support level can allow the bulls to make another attempt to break through the $57,500 barrier. If they are successful, the pair will begin their path to $61,825.84. If the bears push the market below the 50-SMA, the probability of a decline to $50,460 rises.
Solana (SOL) broke above the $48.64 resistance on May 1 and hit a new all-time high at $49.99 today. However, the $50 psychological level is acting as a resistance and the bears have pulled the price back below $48.64 today.
If the bears keep the price below $48.64 for two days, the SOL/USDT pair could fall to the $40.51 support level. A quick bounce from this support level would indicate that the bulls are accumulating on declines. The bulls would then try to break through the $50 resistance one more time.
If they are successful, the pair will begin the next leg of the uptrend, which could take them to $56.77 and then $68.05. Increasing moving averages and an RSI close to overbought territory mean that the direction of least resistance is to the upside.
This positive view will invalidate if the price breaks below the 20-day EMA ($38). If that happens, the pair could correct to the 50-day SMA ($26).
The bulls are attempting to protect the 20-EMA on the 4-hour map. The momentum is expected to pick up if they can drive the price past the $48.64 to $49.99 overhead resistance range. The rising 20-EMA and an RSI in positive territory indicate that the bulls have a slight advantage.
In contrast to this assumption, if the price continues to fall from the overhead resistance, it will increase the chances of a break below the moving averages. The price could then be dragged down to $40.51 by the bears. A strong bounce off this support level could hold the pair range-bound for several days.
Huobi Token (HT) surged above the resistance at $26.89 on May 1 and hit a new all-time high at $29.54 today. However, the bears are trying to pull the price back below the breakout level and trap the aggressive bulls.
If the price falls below $26.89 and remains there for three days, the HT/USDT pair will eventually fall to $22. A quick recovery from this support level could hold the pair range-bound for several days.
If the bulls can hold the $26.89 support or do not offer up any ground below $25, it would signal good buying on any slight fall. If the price breaks past $29.54, the uptrend will restart, with the next goal at $36.54.
The 20-day EMA ($20.54) has risen, and the RSI has entered the overbought sector, signalling that the bulls are in command.
The bulls and bears are fighting for dominance at the $26.89 mark. While the bears were able to get the price down down to $26.10, they were unable to maintain the lower prices. This indicates that bulls are purchasing on dips.
Rising moving averages and an RSI close to the overbought region indicate that the bulls have the upper hand. The bulls, on the other hand, are having difficulty pushing the price to $29.54. This might lead to a period of high uncertainty in the short term.
If the price falls below $26, it will be dragged down to the 20-EMA. If the market firmly recovers from this stage, the bulls will make one more attempt to restart the uptrend. A break below the 20-EMA, on the other hand, could mark the start of a deeper correction.
The bears are trying to stall Ethereum Classic’s (ETC) up-move in the $38 to $41.61 overhead resistance zone. However, the long tail on today’s candlestick suggests that traders are buying at lower levels.
The upsloping 20-day EMA ($28.74) and an RSI in the overbought zone point to a bullish advantage. If buyers push the price beyond the overhead zone, the ETC/USDT pair could resume its upward trajectory and reach $53.21.
In contrast to this theory, bears would attempt to sink the pair to the 20-day EMA if the price falls from the overhead zone. If the pair breaks below this support, it would mean that the bullish momentum has diminished, and it will then fall to $22.20.
The 20-EMA is up, and the RSI is in the overbought range, indicating that the bulls are in command. The bears, on the other hand, are not going down without a fight. They will attempt to halt the upward movement in the overhead zone.
A fall below the 20-EMA would be the first indication that the bullish trend is fading. This could push the price down to the 50-day simple moving average. A step like this might leave the pair trapped in the range for a few days.
Today, the bulls moved AAVE beyond the $489 resistance. They have not, though, been able to continue the buying at higher prices, and the bears have dragged the market back into the $480 to $280 range today. This means that the bears are attempting to catch the violent bulls who may have bought the range breakout.
If the market falls below the 20-day moving average ($415), it indicates that bulls are not buying on dips. This could push the price down to the 50-day SMA ($383), extending the AAVE/USDT pair’s stay inside the band for a few more days.
In the other hand, a recovery off the 20-day EMA indicates concentration at lower levels. The bulls would then try once more to drive the market up to $581.67. A break of this stage could signal the start of a northward journey to $698.
The 4-hour chart reveals that the bulls bought the dip to the 20-EMA and are attempting to push the market beyond the $489 to $512 resistance range once more. Rising moving averages and an RSI over 63 indicate that the direction of least resistance is up.
This bullish outlook will deteriorate if the price falls below the 20-EMA. This could imply that production outnumbers demand. The pair could then fall to the 50-SMA. If this support holds, the pair could stabilise between $420 and $489 for a few days before resuming its trending advance.