bitcoin (BTC) is attempting to hold above its nearest support level and traders are watching to see if price can hold strong and close above the 2022 annual opening price at $46,200 for the second week in a row.
April has historically been the better performance month of the year for the S&P 500, according to Sam Stovall, chief investment strategist at CFRA. If history repeats itself and the close correlation between the US stock markets and Bitcoin continues, it could bode well for the crypto markets in the short term.
Another sentiment driver could be that the 19 million Bitcoin entered circulation April 1. For the remaining 2 million Bitcoin, the crypto markets will have to wait a long time because the last Bitcoin is expected to be mined by 2140. This could change the focus on how there is only a small amount of Bitcoin left to be mined and its increasing demand could lead to shortages and increase prices.
Could Bitcoin hold above its critical support and if it does, will altcoins rally? Let's study the charts of the top 5 cryptocurrencies that can extend their recovery in the short term.
Bitcoin is witnessing a tough fight between the bulls and the bears near the important level of $45,400. The bears tried to pull and hold the price below this level, but the bulls held their ground. This suggests that the bulls are attempting to turn the level into support. The 20-day rising exponential moving average ($44,333) and the 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 ($48,276). If the bulls push the price above this barrier, the BTC/USDT pair is likely to pick up momentum. The rally could face minor resistance at the psychological level of $50,000, but if this level is crossed, the next stop could be $52,000. Contrary to this assumption, if the price turns down from the current level or overhead resistance, the bears will again try to push the pair below $45,400 and the 20-day EMA. If that happens, the pair could drop to the 50-day SMA ($41.615). The 4-hour chart shows that the price has been correcting since it hit the resistance line of the ascending channel. The bulls' recovery attempts are facing stiff resistance at the downtrend line. If the bulls push and hold the price above the downtrend line, the pair could rally to the resistance line of the channel. A breakout and close above the channel could signal a resumption of the uptrend. Alternatively, if the price turns below the downtrend line, the bears will try to sink the pair to $44,000. If this level breaks, the drop can extend to $42,594. VeChain (VETERINARY) rose above the overhead resistance at $0.07 on Mar 27, but the bears stopped the rally at the 200-day SMA ($0.09). A minor positive is that the bulls have not allowed the price to drop below the breakout level of $0.07. If the price turns up from the current level, the bulls will make one more attempt to overcome the general hurdle at the 200-day SMA. If they manage to do so, it will suggest a possible trend reversal. The VET/USDT pair could go up to $0.10 and then $0.13. The rise of the 20-day EMA ($0.06) and the RSI in positive territory indicate an upside for the buyers. This bullish view will be invalidated if the price turns down and breaks below the 20-day EMA. Such a move could take the pair to the 50-day SMA ($0.05). The 20 EMA has flattened out and the RSI is close to the midpoint on the 4-hour chart, indicating a balance between supply and demand. If the price breaks above $0.08, the bulls will try to push the pair above $0.09. If they do that, the pair could extend their up move. Conversely, if the price turns down and breaks below the 50 SMA, the pair could drop to the critical $0.07 level. If the bulls turn this level into support, the pair will try to climb above $0.09 again, but if the support at $0.07 is broken, the bears can get back into the game. Theta Network's THETA token has been range bound between $2.50 and $4.40 for the past few weeks. The bulls tried 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 drop below $3.80, it will suggest that the traders are not closing their positions in a hurry as they expect the upside move to continue. The rising 20-day EMA ($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 upper zone between $4.40 and the 200-day SMA ($4.77), it will indicate the beginning of a possible uptrend. The THETA/USDT pair could pick up momentum and rally to $6. Contrary to this assumption, if the price breaks below the 20-day EMA, the next stop could be the 50-day SMA ($3.17). Such a move will suggest that the pair may remain range bound 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 overhead resistance at $4.40. The 20-EMA has flattened out and the RSI is close to the midpoint, indicating a balance between supply and demand. If the price falls 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 win the game if the price breaks out and sustains above the overhead resistance. Related: Trezor investigates potential data breach as users cite phishing attacks THORChain (RUNE) has been trading inside a large descending triangle pattern for several months. The strong rally of the past few days pushed the price to the downtrend line of the triangle where the bears are mounting strong resistance. If the price turns down from the current level, the RUNE/USDT pair could drop to the 20-day EMA ($9.75). This is an important level to watch because if the price bounces off the 20 day EMA, it will suggest that the sentiment remains positive and traders are buying the dips. That may improve the prospects for a break above the downtrend line. If that happens, the bearish triangle setup will be invalidated, which could be a bullish sign. The pair can then rise to $17. This bullish view will be nullified in the short term if the price turns down and breaks below the 20-day EMA. That could take the pair to the 200-day SMA ($7.88). The 4-hour chart shows that the pair is facing strong resistance near $13. A minor positive is that the bulls have not allowed the price to drop and sustain below $11. Therefore, this becomes an important level to watch. If the price breaks below this support, the pair could drop to the next major support at $10. Conversely, if the price bounces off $11, the buyers will again try to resume the uptrend by pushing the pair above the overhead resistance. bird (AAVE) broke out of the downtrend line on March 29, signaling a possible trend reversal. The bears tried to stall the rally at the 200 day EMA ($226), but the bulls did not give up much ground. Buying resumed on April 1 and the AAVE/USDT pair broke above the 200-day SMA. If the price sustains above the 200-day SMA, it will signal the start of a new move higher. If the bulls push the price above $262, the rally can extend to the psychological $300 level. The bears can mount a strong resistance at this level, but if the bulls break through this barrier, the move up could reach $350. This bullish view will be invalidated in the short term if the price turns down and falls below the 200-day SMA. The bears could then push the price to the 20-day EMA ($187). The 4-hour chart shows that the bulls are buying the dips from the 20-day EMA. If the bulls push the price above $261.20, the uptrend might resume. This rally could face resistance in the upper zone between $283 and $300. The RSI is showing signs of negative divergence, indicating that the bullish momentum may be weakening. If the price turns down and breaks below the 20-day EMA, it will suggest that the short-term bulls may be making gains. That could sink the pair to 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 do your own research when making a decision.
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FP / USDT
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RUNE / USDT
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