bitcoin ( BTC ) is trying to hold above its nearest support level, and traders are watching if the price can stay strong and close above ...
bitcoin (BTC) is trying to hold above its nearest support level, and traders are watching if the price can stay strong and close above the 2022 annual opening price at $46,200 for the second week in a row.
April has always been the best performing month of the year for the S&P 500, according to to Sam Stovall, chief investment strategist at CFRA. If history repeats itself and the close correlation between US stock markets and Bitcoin continues, it could bode well for crypto markets in the near term.
Another feeling stimulant could be that the 19th million Bitcoins entered circulation the 1st of April. For the remaining 2 million BTC, the crypto markets will have to wait a long time as the last bitcoin is expected to be mined by 2140. This could shift the focus to how there is only a small amount of bitcoin left. extract and its growing demand could lead to a shortage and drive up prices.
Could Bitcoin hold above its critical support, and if so, will altcoins rally? Let’s study the charts of the top 5 cryptocurrencies that are likely to extend their near-term recovery.
BTC/USDT
Bitcoin is witnessing a tug of war between bulls and bears near the important level at $45,400. The bears attempted to pull and hold the price below this level, but the bulls held firm. This suggests that the bulls are trying to turn the level into support.
The 20-day upward sloping exponential moving average (EMA) of $44,333 and the relative strength index (RSI) in positive territory indicate that the path of least resistance is to the upside. The critical level to watch on the upside is the 200-day simple moving average (SMA) of $48,276.
If the bulls push the price above this barrier, the BTC/USDT pair should gain momentum. The rally might face minor resistance at the psychological level at $50,000 but if that level is broken, the next stop might be $52,000.
Contrary to this assumption, if the price declines from the current level or general resistance, the bears will again attempt to pull the pair below $45,400 and the 20-day EMA. If that happens, the pair could drop to the 50-day SMA of $41,615.
The 4-hour chart shows that the price has corrected since hitting the resistance line of the ascending channel. The bulls’ recovery attempts are met with strong resistance at the downtrend line. If the bulls push and hold the price above the downtrend line, the pair could reach the resistance line of the channel.
A breakout and close above the channel could signal the resumption of the uptrend. Alternatively, if the price drops from the downtrend line, the bears will attempt to sink the pair to $44,000. If this level cracks, the decline could extend to $42,594.
VET/USDT
VeChain (VETERINARY) jumped above the overhead resistance at $0.07 on March 27, but the bears blocked the recovery at the 200-day SMA of $0.09. A small bright spot is that the bulls did not allow the price to slide below the breakout level at $0.07.
If the price rises from the current level, the bulls will once again attempt to clear the overhead hurdle at the 200-day SMA. If they succeed, it will suggest a possible change in trend. The VET/USDT pair could then rally to $0.10 and later to $0.13.
The rising 20-day EMA of $0.06 and the RSI in positive territory indicate an advantage for the buyers. This bullish view will be invalidated if the price turns lower and falls below the 20-day EMA. Such a move could pull the pair towards the 50-day SMA of $0.05.
The 20-EMA has flattened out and the RSI is near the midpoint on the 4-hour chart, indicating a balance between supply and demand. If the price breaks above $0.08, the bulls will attempt to propel the pair above $0.09. If they do, the pair could extend its upward move.
Conversely, if the price declines and breaks below the 50-SMA, the pair could drop to the critical level at $0.07. If the bulls turn this level into support, the pair will again attempt to break above $0.09. If the support at $0.07 cracks, the bears could be back in the game.
THETA/USDT
Theta Network (THETA) has been limited between $2.50 and $4.40 for the past few weeks. The bulls attempted to push the price above the overhead resistance but failed. This suggests that the bears continue to defend the level aggressively.
If the price does not fall below $3.80, it will suggest that traders are not closing their positions in a hurry as they expect the rise to continue. The 20-day EMA up from $3.54 and the RSI near the overbought zone indicate that the path of least resistance is to the upside.
If the buyers push the price above the overhead zone between $4.40 and the 200-day SMA of $4.77, this will signal the start of a possible uptrend. THETA/USDT could then gain momentum and rally to $6.00.
Contrary to this assumption, if the price slips below the 20-day EMA, the next stop could be the 50-day SMA of $3.17. Such a move will suggest that the pair might stay in a range for a few more days.
The 4-hour chart shows that the bears have repeatedly thwarted the bulls’ attempts to push the price above the broad resistance at $4.40. The 20-EMA has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand.
If the price slips below the 50-SMA, the short-term advantage could tip in favor of the sellers. The price could then drop to $3.50. On the other hand, the bulls will take over if the price breaks and holds above the overhead resistance.
Related: Trezor investigates potential data breach as users cite phishing attacks
RUNE/USDT
THORChain (RUNE) has been trading inside a large descending triangle for several months. The strong rally over the past few days has pushed the price towards the downtrend line of the triangle, where the bears are providing strong resistance.
If the price declines from the current level, the RUNE/USDT pair could fall to the 20-day EMA of $9.75. This is an important level to watch because if the price bounces off the 20-day EMA, it will suggest that sentiment remains positive and traders are buying lower.
This can improve the outlook for a break above the downtrend line. If this happens, the bearish triangle pattern will be invalidated, which could be a bullish sign. The pair can then rally to $17.
This bullish view will be negated in the short term if the price declines and breaks below the 20-day EMA. This could push the pair down to the 200-day SMA of $7.88.
The 4-hour chart shows that the pair is facing strong resistance near $13. A small silver lining is that the bulls did not allow the price to dive and hold below $11. Therefore, it becomes an important level to watch.
If the price breaks below this support, the pair could fall to the next major support at $10. Conversely, if the price bounces off $11, the buyers will again attempt to resume the uptrend by driving the pair above overhead resistance.
AAVE/USDT
Aave (AAV) broke out of the downtrend line on March 29, indicating a potential trend change. The bears tried to block the rally at the 200-day EMA at $226, but the bulls didn’t give much ground.
Buying resumed on April 1 and the AAVE/USDT pair broke above the 200-day SMA. If the price holds above the 200-day SMA, it will signal the start of a new upswing.
If the bulls push the price above $262, the rally may extend to the psychological level to $300. The bears can mount a strong resistance at this level, but if the bulls overcome this barrier, the upside could reach $350.
This bullish view will be invalidated in the short term if the price declines and drops below the 200-day SMA. The bears could then pull the price towards the 20-day EMA of $187.
The 4-hour chart shows the bulls buying the lows of the 20-EMA. If the bulls push the price above $261.20, the uptrend could resume. This rally may face resistance in the overhead area between $283 and $300.
The RSI is showing signs of negative divergence, indicating that the bullish momentum may be weakening. If the price declines and breaks below the 20-EMA, it will suggest that the short-term bulls could take profits. This could sink the pair towards the 50-SMA.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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