Bitcoin (BTC) is on target to end the week with a sharp decline of around 9%. This suggests that some traders may be booking profits out of fear of a resumption of the downtrend. Analysts are expecting Bitcoin to reach towards the $26,600-$25,000 zone, where buying interest could pick up.
When an asset emerges from a bear market, it looks to make higher lows on the way up. These levels serve as strong supports during subsequent corrections. The current pullback could end up forming an all-time high for Bitcoin, which could serve as a stepping stone for the next rally.
If long-term investors believe that a bottom has been reached, then panicking and selling at every corrective stage is not a good strategy. Rather, every dip could be an opportunity to build a portfolio.
Bitcoin’s correction sent several altcoins down. Only a handful of major cryptocurrencies hold their own and appear strong in the charts. We study the charts of five cryptocurrencies that could outperform on the way up.
Bitcoin price analysis
The buyers are looking to arrest Bitcoin’s correction to the 50-day simple moving average (SMA) ($26,983), but the shallow bounce suggests the bears aren’t willing to give up.
The 20-day exponential moving average (EMA) ($28,606) has started to decline and the Relative Strength Index (RSI) is in the negative zone, signaling that bears have a slight edge. The selling could rise further if the 50-day SMA breaks down.
The BTC/USDT pair could then drop to the breakout level of $25,250. This is an important level to watch because if this support breaks down, the pair could plummet to $20,000.
The buyers will need to push and support the price above the 20-day EMA to signal a comeback. This could attract buying and push the price towards the $31,000-$32,500 resistance zone.
The pair rebounded from $27,125 and reached the 20-day EMA. This is the first hurdle the bulls need to clear to start a strong recovery. The pair could then reach towards the 50-day SMA, where the bears will again try to mount a strong defence.
If the price were to break down from its current level and slide below $27,125, it would suggest that sentiment remains negative and traders are selling on each smaller rally. This will increase the likelihood of a drop to $26,500 and eventually $25,250.
BNB price analysis
BNB (BNB) is witnessing an uphill battle between bulls and bears. Sellers are active above $338, while bulls are fiercely defending the 50-day SMA ($316).
The BNB/USDT pair rebounded from the 50-day SMA on April 21, and the bulls are attempting to clear the $338 hurdle. If successful, the prospects for a rally above $346 will increase. The pair could then rise towards $400. The gradually rising 20-day EMA ($325) and the RSI in the positive territory indicate that the bulls have a slight edge.
If bears want to prevent the upside, they will need to push the price back below the 50-day SMA. This could accelerate the selling and send the pair plummeting to $300 and above it to $280.
The four-hours chart shows that the price rebounded from the support near $316 and reached the 50-SMA. If the bulls clear this hurdle, the pair will attempt to rally to $338 and above it to $346. A break above this level could see a resumption of bullish momentum.
The first support to watch on the downside is the 20-day EMA. If this support breaks down, it would suggest that the pair could consolidate between $315 and $335 for some time. The edge will swing in favor of the bears if the support at $315 breaks down.
Cardano price analysis
On April 20, Cardanos ADA (ADA) fell and plunged again below the neckline of the reverse head-shoulders (H&S) pattern. This indicates that bears are trying to trap aggressive bulls. A small edge in favor of the buyers is that they are looking to protect the 50-day SMA ($0.37).
The 20-day EMA ($0.40) has turned down and the RSI is just below its midpoint, indicating that sellers are trying to take control. If the price breaks below the 50-day SMA, it will suggest that bears are in the driver’s seat. The ADA/USDT pair could then drop to $0.30.
Conversely, if buyers are to maintain their supremacy, they will need to push the price back above the neckline quickly. If they can pull this off, the pair could see solid signings. The pair could then rise to $0.46.
The four-hour chart shows that the bears have pushed the price below the uptrend line and are trying to flip the resistance level on a retest. The falling 20-EMA and the RSI in the negative territory indicate that the bears have the upper hand. If the price falls below $0.38, the selling could intensify and the pair could plummet to $0.34.
This negative view will invalidate in the short term if the buyers push the price above the uptrend line. Such a move will suggest that the recent breakout may have been a bear trap. The recovery is likely to gain momentum after the buyers push the price above the 50-SMA.
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Monero price analysis
Monero (XMR) has fallen from the neckline of the developing reverse H&S pattern, but the sharp recovery from lower levels indicates aggressive buying on the downside.
The buyers have pulled the price back above the 20-day EMA ($157) and will try to challenge the neckline again. If this level is scaled back, it will complete the bullish setup, opening the way for a potential upside to $185 and the pattern target of $199 thereafter.
If the price falls from its current level or neckline, it will signal that bears are selling on rallies. A break and close below $149 will signal that the bears are in control. The XMR/USDT pair could then drop to $145 and above it to $140.
The pair is trading within a descending channel pattern on the 4-hour chart. The snapback from the channel’s support line shows solid buying lower. If the buyers keep the price above the 50-SMA, the pair might reach the resistance line of the channel.
Conversely, if the price continues falling and slides below the 20-EMA, it will suggest that the pair may remain stuck inside the channel for some time to come. Bears will take over on a break below the channel.
Toncoin price analysis
Toncoin (TON) has formed a bearish descending triangle pattern, but a positive sign in favor of the buyers is that the price has been trading near the resistance line of the triangle for the past few days.
The bulls will try to drive and support the price above the resistance line which will invalidate the bearish setup. A break in a negative pattern usually results in an up move because aggressive traders who may have gone short in anticipation of a decline hedge their positions.
Also, bullish traders who have been sitting on the sidelines due to the negative setup are jumping in to buy. Above the resistance line, the TON/USDT pair can rise to $2.64 and above it to $2.90.
This positive view will be invalidated in the near term if the price drops and falls below $2.20.
The four-hour chart shows that the pair is rising within an ascending channel pattern. In the near term, the bears are trying to protect the $2.33 level, but the bulls continue to attack the level with vigor.
If the $2.33 level breaks down, the pair could start its journey towards the resistance line of the channel near $2.45. Alternatively, if the price drops from $2.33 once more, bears will try to sink the pair to the support line of the channel.
This article does not contain investment advice or recommendations. Every investment and trading move carries risk and readers should conduct their own research before making a decision.
This article is for general informational purposes only and is not intended to be and should not be relied upon as investment or legal advice. The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.