Risky assets marginally extend their upward move in April. The S&P 500 Index rose around 1.5% in April, while Bitcoin (BTC) is on track to end the month with gains of more than 4%. Could the rally continue into May or is it time for a pullback?
The recovery could face headwinds if the US banking problems escalate further. JPMorgan Asset Management chief investment officer Bob Michele said in an interview with Bloomberg that the turmoil at First Republic Bank is it is unlikely that it will be limited to only the bankand could cause a domino effect.
If that happens, then the US equity markets may witness a correction. However, it is difficult to predict how Bitcoin will react to such a crisis because, in recent days, the price of BTC has risen while legacy banking problems have deepened. But in the event of a major turmoil in the US banking sector, Bitcoin may also face a correction sooner or later.
In the near term, Bitcoin and select altcoins are showing strength. Let's study the charts of five cryptocurrencies that may outperform in the coming days.
Bitcoin Price Analysis
After two days of low volatility trading on Bitcoin, the bulls are trying to assert their supremacy on April 30.
The 20-day exponential moving average ($28,783) has gradually started to rise and the RSI is in the positive zone, indicating that the path of least resistance is to the upside.
If the bulls push the price of Bitcoin above $30,000, the BTC/USDT pair can rally to the $31,000-$32,400 overhead resistance zone. Buyers may face formidable resistance in this zone, but if it is crossed, the pair can shoot towards $40,000.
The 50-day simple moving average ($28,026) is the important support to watch. If the BTC price crashes below this level, the bears will spot an opportunity and try to sink the pair to $25,250.
The bears tried to pull the pair below the 20 EMA but the bulls held their ground. This may have attracted more buying and the bulls will try to push the price above $30,000. If they succeed, Bitcoin can go up to $30,500, or even $31,000.
Conversely, if the price turns down and breaks below the 20 day EMA, it will suggest that the bears are selling near the upper resistance levels. The pair may then slide to the 50-SMA.
The bulls will try to protect this level, but if the bears dominate them, the next stop is likely to be $27,000. The buyers are likely to defend the area between $27,000 and $25,250 with all their might.
Solana Price Analysis
The bulls did not allow Solana (SUN) to break back below the downtrend line during the most recent leg of the correction, indicating that demand is at lower levels.
Next, the buyers will try to push the price to the upper resistance of $27.12. This remains the key resistance to watch in the short term because if the bulls catapult the price above it, the SOL/USDT pair can accelerate towards $39.
This bullish view could be invalidated in the short term if the price turns down and breaks below the moving averages. The pair could plummet to the crucial support at $18.70. If the price bounces off of this level, it indicates that the pair may oscillate within the broad range of $18.70 to $27.12 for some time.
The moving averages on the 4 hour chart have started to rise and the RSI is in positive territory, indicating that buyers are in control. The bears are trying to stop the rally at $24, but if the bulls break through this barrier, the pair can pick up momentum and rally towards $25.50.
If the bears want to avoid the rally, they will have to quickly pull the price below the 20 day EMA. The 50-SMA will be the support level to watch here if the price starts to fall.
Cosmos Price Analysis
The long tail in Cosmos' (ATOM) The April 26 candlestick shows that the bulls are fiercely defending the $10.20 support.
The buyers have pushed the price above the moving averages and will try to reach the downtrend line. This is an important level to watch because a break and close above it will open the doors for a possible rally to $13.50 and then $15.50.
On the other hand, if the ATOM/USDT pair reverses the direction of the downtrend line, it will suggest that the bears are trying to form a descending triangle pattern. A drop below the moving averages will open the doors for a possible retest of $10.20.
The 20-EMA on the 4-hour chart has turned up and the RSI is close to the overbought zone, indicating that the bulls are in control. There is a minor hurdle at $12.13, but this is likely to be cleared. ATOM price may move higher to test the downtrend line.
Instead, if the price turns down from $12.13, the bears will try again to sink the pair below the 20-day EMA. If they manage to do that, it will suggest that buyers may be losing control. Then the pair risks falling to the 50-SMA.
Related: 'Good Luck Bears': Bitcoin Traders Closely Watch April Close With BTC Price At $29K
Internet computer price analysis
Internet Computer (PCI) fell below the 50-day SMA ($5.38) on April 26, but it turned out to be a bear trap. The price rose on April 27 and began a strong recovery.
The 20-day EMA ($5.74) has started to turn around and the RSI has jumped into positive territory, indicating that the bulls have a slight advantage. If the price does not give up much ground from the current level or recovers from the 20 day EMA, it will suggest that the bulls are buying the dips.
That will improve the prospects of a rally towards the downtrend line where the bears will once again mount a strong defense. On the downside, a break below the 50-day SMA will tip the advantage in favor of the bears.
The 4-hour chart shows that the ICP/USDT pair is in a corrective phase. The first support is at the 20-day EMA, which is near the 38.2% Fibonacci retracement level of $6.14. If the price bounces off this support, the pair can rally to $7.23 and eventually $7.70.
Contrary to this assumption, if the price continues lower and breaks below the 20 day EMA, it will suggest that the short-term bulls may be booking profits. That could take the price to the 50-SMA, which is close to the 61.8% retracement level of $5.72.
Ivy Price Analysis
The bears tried to sink Hedera repeatedly (HBAR) below $0.06, but the bulls held their ground. The failure to break the support attracted buyers who will try to push the price above the downtrend line.
The 20-day EMA ($0.06) is flattening out and the RSI has risen above the midpoint, indicating that the selling pressure is easing. If the buyers push the price above the resistance line, the bullish momentum may pick up and the HBAR/USDT pair could rally to the overhead resistance of $0.08.
Conversely, if the price turns down from the current level or the resistance line, it will suggest that the bears remain active at higher levels. That increases the possibility of a break below $0.06.
The 4-hour chart shows that the bulls have flipped the moving averages to support and launched a move higher that is likely to reach the resistance line. This level is expected to act as strong resistance, but on the way down, if the pair bounces off the 20 day EMA, it will suggest a shift in sentiment from selling on the rallies to buying on the dips.
The pair can then break above the resistance line and start its journey at $0.07 and then $0.08. If the bears want to gain an advantage, they will need to quickly push the price of HBAR below the moving averages.
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.
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