bitcoin (BTC) and most major altcoins have broken through key support levels to start the week on a weak note. Crypto markets seem to be following US stock markets lower, which is shrinking as investors reduce exposure to risky assets due to the increase in rates.
Arthur Hayes, former chief executive of derivatives giant BitMEX, said that with rates rising and the Federal Reserve curtailing its asset purchases, equity markets could see a crash. If that happens, Hayes hopes the crypto markets will continue to decline and Bitcoin will fall to $30,000 and Ether (ETH) to $2,500 by June of this year.
Ark Invest founder Cathie Wood said in an interview with CNBC that decentralized finance applications are attracting a lot of interest from investors. The legacy banking industry is feeling the heat because they are not only losing the savings and lending business to DeFi, but also losing talent to the crypto industry.
Although the long term remains positive, could Bitcoin and altcoins weaken further in the short term? Let's study the charts of the top 10 cryptocurrencies to find out.
The bulls have kept Bitcoin above the 50-day simple moving average ($41,908) for the past few days, but were unable to push the price above the 20-day exponential moving average ($43,576). This suggests that the bears are selling on the rallies. The selling picked up momentum today and the bears have pushed the price below the 50-day SMA. There is minor support at the psychological level of $40,000, but if it breaks, the BTC/USDT pair could plummet to the support line of the ascending channel. The bulls are likely to defend this level with all their might. The 20-day EMA on the downside and the RSI in the negative territory indicate that the bears are back in the driver's seat. This negative view will be invalidated in the short term if the price breaks above the 20-day EMA. The pair could then rally to $45,400. Ether traded close to the 20-day EMA ($3,198) for the past few days, but the weak bounce suggested a lack of aggressive buying by the bulls. That may have emboldened the bears who have accelerated their selling today. The bears will now try to push the price towards the 50-day SMA ($2,940). If the price bounces off this support, the ETH/USDT pair could consolidate between the 50-day SMA and the 200-day SMA ($3,489) for a few days. Alternatively, if the price breaks below the 50-day SMA, the selling could accelerate and the pair could drop to $2,800. A break below this support could result in a drop to the trend line. The bulls are expected to defend this level aggressively. Binance Coin (bnb) turned down the overhead resistance at $445 on Apr 8 and broke below the 20-day EMA ($422). This suggests that the bears are selling on rallies to $445. The buyers tried to push the price back above the 20-day EMA in the last two days, but could not sustain the higher levels. This renewed the selling and the BNB/USDT pair fell to the 50-day SMA ($400). A strong bounce from the current level will suggest that the bulls are piling on the dips. The buyers will have to push and hold the price above the 20-day EMA to improve the prospects for a retest of $445. Conversely, if the price falls below the 50-day SMA, it will suggest that buying has run out. That could take the pair to the strong support at $350. solana (SUN) turned down the overhead resistance at $122 on Apr 8 and fell below the 20-day EMA ($112). The bulls pushed the price above the 20-day EMA on Apr 10, but could not sustain the higher levels. This suggests that the bears are selling on the rallies. The selling gathered momentum today and the bears have pushed the price below the support at $106. The SOL/USDT pair could now drop to the 50-day SMA ($98), which is likely to act as strong support. If the price bounces off the 50-day SMA and breaks above the 20-day EMA, it will suggest strong demand at lower levels. On the other hand, a break and close below the 50-day SMA could open the doors for a further drop to $81. ripple (XRP) had been trading above the $0.75 level for the past few days, but the failure of the price to rise back above the moving averages may have attracted more selling from the bears. The 20-day EMA ($0.79) has turned down and the RSI is close to 34, which indicates that the sellers are in control. The next stop is likely to be $0.69. A strong bounce off this level will suggest that the bulls are defending this level vigorously. That could keep the XRP/USDT pair range between $0.69 and $0.91 for a few days. However, if the price falls below $0.69, the selling could intensify further and the pair could drop to the next major support at $0.60. Cardan (THERE IS) made several attempts to break back above the 20-day EMA ($1.06) in the past few days, but the bears did not budge. The selling intensified today and the bears have pushed the price below the 50-day SMA ($0.96). If the price sustains below the 50-day SMA, the ADA/USDT pair could drop to the critical support at $0.74. The bears are expected to defend this level with all their might. A strong bounce could suggest that the pair could consolidate in a wide range between $0.74 and $1.26 for a few days. Contrary to this assumption, if the price turns up from the current level and breaks above the 20-day EMA, it will suggest strong buying at lower levels. That could limit the trading range between the 50-day SMA and $1.26. from Earth MOON the token broke down and closed below the 20-day EMA ($99) on April 8. The bulls attempted a recovery on April 9 but were unable to challenge the 20-day EMA. This may have attracted more selling and the bears have pushed the price below the 50-day SMA ($90). The 20-day EMA has turned down and the RSI has dipped into the negative zone, which suggests that the momentum has turned in favor of the bears. If the price sustains below the 50-day SMA, the possibility of a drop to $75 increases. If this level also breaks, the next stop could be the strong support at the 200-day SMA ($65). Conversely, if the price turns up from the current level and breaks above the 50-day SMA, it will suggest strong demand at lower levels. The bulls will once again try to push the price above the 20-day EMA. Related: Axie Infinity Sees No 'Signs of Buyers' as AXS Price Drops 30% in Two Weeks The bulls failed to hold Avalanche (AVAX) above the 20-day EMA ($86) on Apr 8, which suggests that the bears are defending this level. This may have led to more selling and the price fell below the 50-day SMA ($82) on April 10. The 20-day EMA has turned down and the RSI is in the negative territory, which indicates that the bears have the upper hand. The sellers will try to push the price to the next strong support at $65. If the price bounces off this level, it will suggest that the AVAX/USDT pair could range between $65 and $99 for a few more days. Alternatively, if the price turns up from the current level, the bulls will once again try to push the pair above the 20-day EMA and challenge the overhead resistance at $99. The bulls defended the 50-day SMA ($19) on Apr 8-10, but the failure to push Polkadot (POINT) above the 20-day EMA ($20) may have attracted selling. That has pushed the price below the strong support at $19. The 20-day EMA has started to turn down and the RSI is in the negative territory, which indicates that the bears have the upper hand. The DOT/USDT pair could now drop to $16, which is likely to act as strong support. If the price bounces off this level, the pair could remain stuck between $16 and $21 for a few more days. The next trending move is likely to start with a break below $16 or a rally above the upper hurdle at $21. doecoin (DOGE) attempted a rally on April 10, but the long wick of the candlestick shows that the bears were sold at higher levels. The bears will now try to sink and keep the price below the 20-day EMA ($0.14). If that happens, the DOGE/USDT pair could slide to the 50-day SMA ($0.13). Such a move will suggest that the pair could remain trapped within the wide range between $0.17 and $0.10 for the next few days. The flattening of the 20-day EMA and the RSI near the midpoint also suggest a short-term consolidation. If the price bounces from the current level, the bulls will once again try to push the pair to $0.17. A breakout and close above the 200-day SMA ($0.18) could signal the start of a possible new uptrend. 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 do your own research when making a decision. Market data is provided by HitBTC exchange.
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