Bitcoin price started the week off with a strong move that propelled the price above $50,000 and at the time of writing, bulls are in pursuit of the $55,000 level.
On April 21, JPMorgan analysts wrote that the liquidity in the cryptocurrency markets is likely to recover sharply after the recent sell-off in Bitcoin (BTC). According to the analysts, “the worst of the liquidations” could be over “suggesting little overhang to work through.”
Another bullish sign was shown by the Crypto Fear and Greed Index, which quickly dipped from greed in the last week to fear on April 25, indicating that exuberant high leverage traders had likely been washed out. This reset also gave an opportunity for larger-size investors to buy at lower levels.
Today's breakout seems to have caught the aggressive bears napping, which resulted in the liquidation of $150 million in shorts, according to Moskovski Capital chief investment officer Lex Moskovski.
Data from Bybt shows that the funding rate for Bitcoin is less than 0.01%, which is below the neutral rate. This suggests that there are still shorts in the system which may be squeezed out if the uptrend resumes.
Let’s analyze the charts of the top-10 cryptocurrencies to identify the critical resistance and support levels that will determine the next trend.
Bitcoin dipped to a swing low at $46,985.02 on April 25 but the bears could not sustain the lower levels. This suggests that the bulls continue to accumulate on dips. The strong buying has pushed the price back above $50,460 today.
The downsloping 20-day exponential moving average ($55,385) and the relative strength index (RSI) at 45 suggest the bears still have the upper hand. The sellers are likely to defend the 20-day EMA aggressively.
If the price turns down from the 20-day EMA, it will indicate that the sentiment remains bearish and traders are selling on rallies. The bears will then try to sink the BTC/USDT pair below $46,985.02 and extend the correction to $43,006.77.
Contrary to this assumption, if the bulls do not give up much ground from the 20-day EMA, it will suggest that traders continue to buy at higher levels. A breakout of the 50-day simple moving average ($56,903) may open the doors for a rally to $61,825.84.
Ether (ETH) bounced off the 20-day EMA ($2,259) on April 25 indicating accumulation at lower levels. The bulls will now try to thrust the price above the $2,545.84 to $2,645 resistance zone.
If they succeed, the ETH/USDT pair could resume the uptrend, which could reach $3,000. The upsloping moving averages and the RSI above 63 suggest the bulls have the upper hand.
However, if the price turns down from the overhead zone, the bears may again pull the price down to the 20-day EMA. If this support cracks, the pair could drop to $2,040.77. A bounce off this support could keep the pair range-bound between $2,040.77 and $2,645 for a few days.
Binance Coin (BNB) is forming a symmetrical triangle, which usually acts as a continuation pattern. The bulls will now try to push the price to the resistance line of the triangle.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for BNB on April 24, even before the rally had started.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
The 7-day chart above shows the VORTECS™ Score for BNB flipped green on April 24 when the price was $500.86.
Although the price dipped to a low of $483.68 on April 26, the VORTECS™ Score continued to remain in the green, avoiding a whipsaw to the traders. The bullish view on the VORTECS™ Score proved correct as BNB rallied to a high of $545.94 on April 26.
If the bulls can thrust the price above the triangle, the uptrend is likely to resume. The target objective of this setup is $808.57. The gradually upsloping 20-day EMA ($489) and the RSI above 59 suggest the bulls have a slight advantage.
However, if the price turns down and plummets below the support line of the triangle, the BNB/USDT pair could drop to $348.70. Such a move will suggest that the symmetrical triangle acted as a reversal pattern.
XRP has taken support near the 78.6% Fibonacci retracement level at $0.86. The bulls are attempting to start a relief rally today and have pushed the price above the 20-day EMA ($1.20).
If the bulls sustain the price above the 20-day EMA, the XRP/USDT pair could gradually rise to $1.46. The bears will try to stall the relief rally at this level. If the price turns down from this level, it will suggest that traders are closing their positions on rallies.
The pair could then drop to the 20-day EMA. A break below this support could result in a drop to the 50-day SMA ($0.86). Contrary to this assumption, if the bulls push the price above $1.46, the pair could move up to $1.74 and then $1.96.
Cardano (ADA) plunged below the $1.03 support on April 23 but the bears could not capitalize on this breakdown. The long tail on the day’s candlestick showed the bulls aggressively bought at lower levels.
The bears again tried to break the $1.03 support on April 25 but failed. The successful defense of the $1.03 support could have attracted strong buying from the bulls who are attempting to push the price above the moving averages.
If they succeed, the ADA/USDT pair could gradually climb toward the $1.48 resistance. On the contrary, if the price again turns down from the moving averages, the bears will make one more attempt to sink the price below $1.03 and start a new downtrend.
The bears attempted to sink Dogecoin (DOGE) below the 20-day EMA ($0.22) on April 25 but failed, which suggests that the bulls are trying to defend this support. The meme coin has formed an inside day candlestick pattern today, suggesting indecision among the bulls and the bears.
If the buyers propel the price above $0.29, the DOGE/USDT pair could rally to $0.35 where the bears may mount a stiff resistance. If the price turns down from this resistance, the bears will try to pull the price down to the 20-day EMA.
The extent of the fall from $0.35 will determine the next possible move. If the bulls do not give up much ground from $0.35, the possibility of a rise to $0.42 increases. However, if the price drops to the 20-day EMA, then the pair could remain range-bound for a few days.
The selling may intensify if the bears sink and sustain the price below the 20-day EMA. That could open the doors for a drop to the 50-day SMA ($0.11).
In a range-bound asset, traders buy near the support and sell at the resistance of the range. Polkadot (DOT) also witnessed buying near the $26.50 support on April 25 and the bulls have extended the relief rally today.
The up-move may face selling at the 20-day EMA ($35.79), which is sloping down. If the price reverses direction from the 20-day EMA, the bears will try to sink the DOT/USDT pair below $26.50.
If they succeed, the pair could start a new downtrend. Contrary to this assumption, if the bulls drive the price above the moving averages, the pair could move up to $42.28. This level may again act as a stiff resistance but if the bulls clear the hurdle, the pair could rise to $48.36.
Uniswap (UNI) slipped below the 50-day SMA ($31.41) on April 24 but the bears could not hold on to their advantage. The altcoin rebounded sharply on April 25 and rose above both moving averages.
The bulls have continued their buying today and have pushed the UNI/USDT pair above $35.20. However, the buyers are likely to counter stiff resistance from the bears in the $38.45 to $39.60 zone.
If the price turns down from this zone but rebounds off the 20-day EMA ($32.83), it will indicate the sentiment is positive and traders are accumulating on dips. That will enhance the prospects of a break above the all-time high at $39.60.
This positive view will invalidate if the price turns down from the current level of the overhead resistance and breaks below $29.80.
The bears failed to break and sustain the price below the 50-day SMA ($221) for the past three days. That could have attracted buying from the bulls who are attempting to push Litecoin (LTC) back above the 20-day EMA ($245) today.
If they succeed, the LTC/USDT pair could start its journey to $289.62 where the bears may try to stall the relief rally. If the price turns down from this resistance, the pair could again drop to the 20-day EMA and then to the 50-day SMA.
A break below the 50-day SMA could witness panic selling that may pull the price down to $168. On the other hand, if the bulls drive the price above $289.62, the pair could rally to the 52-week high at $335.03.
Bitcoin Cash (BCH) dipped and closed below the 20-day EMA ($797) on April 24 but the bears could not leverage this advantage and sink the price to the 50-day SMA ($647). This showed that buyers were accumulating below $750.
The bulls have pushed the price above the 20-day EMA and the downtrend line today. If the buyers can sustain the breakout, the BCH/USDT pair could start its journey toward $1,000 where the bears are again likely to pose a stiff challenge.
Contrary to this assumption, if the bulls fail to sustain the breakout, it will show that traders are closing their positions on rallies. That could increase the possibility of a drop to the 50-day SMA.
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Market data is provided by HitBTC exchange.