bitcoin (BTC) is on track to end the week with a sharp drop of around 9%. This suggests that some traders may be booking profits out of fear of the downtrend resuming. analysts expect Bitcoin to reach the $26,600 to $25,000 zone where buying interest may increase.
When an asset emerges from a bear market, it tries to make higher lows on the way up. These levels act as strong supports during subsequent corrections. The current pullback could end up forming a higher bottom for Bitcoin, which may act as a launching pad for the next rally.
If long-term investors believe a bottom has been reached, panicking and selling at every corrective phase is not a good strategy. Rather, each dip could be an opportunity to build a portfolio.
The correction in Bitcoin has taken several altcoins down. Only a handful of the major cryptocurrencies are holding up and looking strong on the charts. Let's study the charts of five cryptocurrencies that may outperform on the way up.
Bitcoin Price Analysis
Buyers are trying to stall Bitcoin's correction at the 50-day simple moving average ($26,983), but the shallow bounce suggests that the bears are unwilling to give up.
The 20-day exponential moving average ($28,606) has started to turn lower and the RSI is in the negative zone, indicating that the bears have a slight advantage. Selling could go higher if the 50-day SMA is broken.
The BTC/USDT pair could fall to the breakout level of $25,250. This is an important level to watch because if this support breaks down, the pair can drop to $20,000.
The buyers will have to push and hold the price above the 20 day EMA to signal a comeback. That could attract buying and push the price towards the $31,000 to $32,500 resistance zone.
The pair bounced off $27,125 and reached down towards the 20-day EMA. This is the first hurdle that the bulls need to cross to start a strong rally. The pair can then reach the 50 SMA where the bears will again try to mount a strong defense.
If the price turns down from the current level and slides below $27,125, it will suggest that sentiment remains negative and traders are shorting every minor rally. That will increase the probability of a drop to $26,500 and eventually $25,250.
BNB Price Analysis
bnb (bnb) is witnessing a tough battle between the bulls and the bears. The sellers are active above $338 as the bulls fiercely defend the 50-day SMA ($316).
The BNB/USDT pair rallied from the 50-day SMA on April 21 and the bulls are attempting to clear the hurdle at $338. If they succeed, it will improve the prospects for a rally above $346. The pair can then shoot towards $400. The gradually rising 20-day EMA ($325) and the RSI in the positive territory indicate that the bulls have a slight advantage.
If the bears want to avoid the move higher, they will have to push the price below the 50-day SMA. That could accelerate the selling and sink the pair to $300 and then $280.
The 4-hour chart shows that the price has recovered from the support near $316 and reached the 50-SMA. If the bulls clear this hurdle, the pair will try to rally to $338 and then $346. A break above this level could see a pickup in bullish momentum.
The first support to watch on the downside is the 20-EMA. If this support gives way, it will suggest that the pair may consolidate between $315 and $335 for some time. The advantage will tilt in favor of the bears if the support at $315 gives way.
Cardano Price Analysis
Cardano (ADA) turned down and plunged back below the neckline of the inverse H&S pattern on April 20. This indicates that the bears are trying to catch the aggressive bulls. A minor positive in the buyers' favor is that they are trying to protect the 50-day SMA ($0.37).
The 20-day EMA ($0.40) has turned down and the RSI is just below the midpoint, indicating that the sellers are trying to take control. If the price falls below the 50-day SMA, it will suggest that the bears are in the driver's seat. The ADA/USDT pair could crash to $0.30.
Conversely, if the buyers want to retain their supremacy, they will need to quickly push the price above the neckline. If they manage to do that, the pair could witness a solid buy. The pair can then rise to $0.46.
The 4-hour chart shows that the bears have pulled the price below the uptrend line and are trying to turn the resistance level into a retest. The downward slope of the 20 EMA and the RSI in 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 drop to $0.34.
This negative view will be invalidated in the short term if the buyers push the price above the uptrend line. Such a move will suggest that the recent collapse may have been a bear trap. The rally is likely to pick up momentum after the buyers push the price above the 50-SMA.
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Monero Price Analysis
money (XMR) declined from the neckline of the developing Inverse H&S pattern, but the strong recovery from the lower levels indicates aggressive buying on dips.
The buyers have pushed the price back above the 20-day EMA ($157) and will try to challenge the neckline again. If this level is scaled, it will complete the bullish setup, clearing the way for a possible rally to $185 and subsequently to the pattern target of $199.
If the price turns down from the current level or from the neckline, it indicates that the bears are selling rallies. A break and close below $149 will indicate that the bears have taken over. The XMR/USDT pair can then drop to $145 and then $140.
The pair is trading within a descending channel pattern on the 4-hour chart. The pullback of the support line of the channel shows solid buying at the lower levels. If the buyers hold the price above the 50 SMA, the pair could rally to the resistance line of the channel.
Conversely, if the price continues lower and slides below the 20 day EMA, it will suggest that the pair may remain trapped inside the channel for longer. The bears will gain advantage on a break below the channel.
Toncoin Price Analysis
Toncoin (TON) has formed a bearish descending triangle pattern, but a positive sign for 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 push and hold the price above the resistance line, which will invalidate the bearish setup. A breakout of a negative pattern usually results in a move higher because aggressive traders who may have gone short in anticipation of a fall cover their positions.
Also, bullish traders who have been sitting on the sidelines due to the negative setup jump to buy. Above the resistance line, the TON/USDT pair could rally to $2.64 and then $2.90.
This positive view will be invalidated in the short term if the price turns down and falls below $2.20.
The 4 hour chart shows that the pair is rising in a rising channel pattern. In the short term, the bears try to protect the $2.33 level, but the bulls continue to attack the level with vigor.
If the $2.33 level gives way, the pair can start its journey towards the resistance line of the channel near $2.45. Alternatively, if the price turns down from $2.33 once again, the 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 involves risk, and readers should do their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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