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Bitcoin’s (BTC) pause near the all-time high shows that bulls and bears are looking for a signal to begin the next trending step.
The bulls are looking for a constructive spark that will push the market over the overhead resistance. On the opposite, the bulls might be waiting for any signs of weakening that would validate a short-term peak.
The Nasdaq listing of Coinbase’s COIN stock on April 14 may serve as a catalyst. A good listing is likely to be applauded by crypto bulls because it could indicate greater crypto acceptance by conventional investors in the future. A lukewarm reaction to the Coinbase page, on the other hand, could embolden the bears.
According to the Onchain predictor HODL waves, both long-term buyers and short-term speculators are not booking gains because they expect higher amounts in the future. An spike in the number of HODLers is usually a positive indicator, but it could become an overhang if new capital runs out and the economy begins to change course.
If this occurs, short-term speculators are likely to panic and sell their positions first. This might cause swing traders’ stops and accelerate selling, paving the way for a deeper correction.
As markets await a catalyst, let’s look at the charts of the top five cryptocurrencies that might profit from a bullish sentiment.
On April 10, Bitcoin surged past the $60,000 overhead resistance and hit $61,301.21, falling only shy of the all-time high of $61,825.84. However, the bulls are already struggling to keep the market over $60,000, showing that the bears are putting up a fight.
The price has yet to close above $60,000 which means the inverse head and shoulders pattern is still not complete.
The bears will attempt to take advantage of the narrow window of opportunity by driving the price down to the 20-day exponential moving average ($57,513). A big rebound off this support raises the chances of a break above $61,825.84.
If this occurs, the BTC/USDT pair can begin the next leg of its uptrend, which could lift the price to $69,540 and then $79,566.
If the bears push the price below the 20-day EMA, the pair can test the crucial support at the 50-day simple moving average ($54,723). A fall below this support would be the first sign of a potential pattern reversal.
The bears are involved above $60,000 on the 4-hour map. The bulls, on the other hand, have not allowed the price to fall below the 20-EMA. This means that the bulls are buying on every slight fall.
If the bulls can drive the price beyond $60,000 once more, the pair can threaten the all-time high. In the other hand, if the bears push the market below the 20-EMA, it might fall to $57,600. If this support fails, the next possible stop will be $55,600.
Stellar Lumens (XLM) smashed through the $0.60 resistance level today, reaching a fresh 52-week peak of $0.65. When an asset sets a new 52-week record, it is a symbol of strength and it indicates that buyers are eager to purchase and they believe the price will climb higher.
The upsloping 20-day EMA ($0.46) and an RSI in overbought territory indicate that the bulls have the upper hand. If the bulls may push the price beyond $0.65, the XLM/USDT pair can begin the next leg of its uptrend, which may take it to $0.72 and then $0.85.
The long wick on today’s candlestick, on the other hand, shows that the bears have other ideas. They are attempting to entice the bullish bulls to get the market down down to $0.60. If the bulls do not encourage the market to fall below $0.55, it will signal a time to buy on dips. This would keep the mood upbeat.
In contrast to this expectation, a decline to the 20-day EMA is likely if the bears drive the market below $0.55. A break below this level indicates that the bulls have lost control.
The pair closed above $0.60 on the 4-hour scale, but the bulls were unable to capitalise on this momentum. The bears took advantage of the opening and dragged the market down below the breakout mark of $0.60.
If the bears are unable to lower the price to the 20-EMA, it would indicate that the bulls are accumulating on dips. This raises the prospect of a resumption of the upward trend. A split below the 20-day EMA, on the other hand, could tip the scales in favour of the bears.
IOTA (MIOTA) is on the rise. On April 10, the bulls moved the market beyond the psychologically significant $2 mark. If the bulls will keep the breakout going, the uptrend could hit the next goal at $2.35 and then $2.60.
The upsloping 20-day EMA ($1.66) and an RSI near the overbought zone indicate that the bulls are in charge.
If the bulls are unable to keep the price above $2, the bears can attempt to drag the price down to the 20-day EMA. Since the start of the current leg of the rally in March, the bulls have successfully defended this sponsorship.
As a result, if the market bounces off the 20-day EMA again, it indicates that momentum remains bullish and bulls are buying on dips. A break below the 20-day EMA, on the other hand, indicates that the bears are making a comeback.
Profit-booking is visible over $2 on the 4-hour map. The MIOTA/USDT pair can now fall to the 20-EMA, which is sloping upward. If the market bounces off this stage, it would increase the chances of the uptrend resuming.
In the other hand, if the bears push the price below the 20-EMA, the pair can continue to fall to the 50-SMA. A deep correction of this magnitude may cause the next leg of the uptrend to be delayed.
On April 10, Monero (XMR) broke through the $268.60 resistance, signalling a potential resumption of the uptrend. If the bulls can keep the breakout going, the altcoin could rally to the next goal of $334 and then $384.
The rising 20-day EMA ($258) and an RSI above 75 indicate that the direction of least resistance is up.
If the bulls are unable to keep the price above $288.60, the XMR/USDT pair can fall to the 20-day EMA. A big rebound off this support indicates that momentum is still bullish and that bulls are buying on dips. The bulls will then try to restart the uptrend once more.
If, on the other hand, the bears drive the market below the 20-day EMA, it indicates a potential shift in sentiment. This could lead to a fall to the 50-day simple moving average ($232).
The 4-hour chart reveals that the bears tried to stall the rally at the psychological resistance level of $300, but the bulls held their ground. They bought the dip to the 20-EMA and drove the stock up over $300.
Rising moving averages and an RSI near the overbought region indicate that the bulls are in command.
This optimistic viewpoint would be rendered null and void if the market falls and breaks below the moving averages. Such a shift indicates that demand has peaked and traders are taking money. This will reduce the price to $250.
Tezos (XTZ) is on an upward trajectory. On April 5, it broke through the strong overhead resistance at $5.64, and on April 7 and 8, it successfully retested the breakout stage. On April 10, the altcoin resumed its upward trajectory, reaching a new all-time peak of $7.21.
The 20-day EMA ($5.42) is sloping up and the RSI is near the overbought territory, indicating advantage to the bulls. In a strong uptrend, corrections usually last between one to three days as traders buy every minor dip aggressively.
Today’s candlestick has a long tail, indicating that dealers are purchasing at lower prices. If they can push the price beyond $7.21, the XTZ/USDT pair will be able to rally to the next goal level of $8.14.
The 20-day EMA is the main support on the downside. If the price bounces off this support, it indicates that the mood is still bullish. The sellers would then continue to drive the price beyond $7.21 once more. A break below the 20-day EMA, on the other hand, indicates that the bullish impetus has diminished.
On the 4-hour map, the bulls are attempting to halt the pullback at the 20-EMA. A retest of $7.21 is feasible if they can drive the price beyond $6.85. A break through this resistance would signal the start of the next leg of the uptrend.
In contrast to this assumption, if the pair splits and holds below the 20-EMA, it can fall to the 50-SMA. Since the price has not fallen below the 50-SMA since March 29, the bulls are likely to protect it vigorously.
If the bulls struggle to halt the fall at the 50-SMA, the drop could stretch to $5.40 and then to $4.60.