According to CoinShares, the institutional inflow into crypto products hit $4.5 billion in Q1, which is 11% higher than the intake seen in Q4 2020. This shows that institutional interest is on the rise but the quarter-on-quarter growth has slowed down from the 240% recorded in Q4 2020.
As Bitcoin price moves higher, more funds are needed to sustain the levels. Therefore, if institutional inflows do not pick up in the next few days, Bitcoin (BTC) and other altcoins could witness a major correction.
While this may accelerate the fall, lower levels are likely to attract investors who may have missed the bus earlier. If this assumption plays out, volatility throughout the market may remain high in the next few days.
Let’s analyze the charts of the top-10 cryptocurrencies to see if it also projects a possible correction.
BTC/USDT
Bitcoin’s failure to cross the stiff overhead resistance zone at $60,000 to $61,825.84 seems to have attracted profit-booking from short-term momentum traders. This has pulled the price back below the 20-day exponential moving average ($56,863) today.
The next support on the downside is $50,460. If this level also gives way, the BTC/USDT pair could plummet down to $43,006.77. The flattening moving averages and the relative strength index (RSI) dropping below 52 suggest that the bulls may be losing their grip.
Contrary to this assumption, if the price rebounds off the 50-day SMA, the bulls will make one more attempt to push the pair to a new all-time high. If they succeed, the pair could start its journey to the next target objective at $69,540 and then $79,566.
ETH/USDT
Ether (ETH) broke to a new all-time high on April 2 but could not take off and continue its climb. This showed hesitation among the bulls and even though they managed to push the price to a new all-time high at $2,150 on April 6 the rally has since stalled.
The bulls will then make one more attempt to drive the price above $2,150. If they succeed, the pair could start its journey to the next target objective at $2,618.14.
This positive view will invalidate if the bears sink and sustain the price below the 20-day EMA. Such a move will suggest a possible change in sentiment and that could drag the price down to the trendline.
BNB/USDT
Binance Coin (BNB) is in a strong uptrend. The bears tried to pull the price back below the breakout level at $348.69 today but the long tail on the candlestick shows the bulls purchased this dip aggressively.
On the other hand, if the price dips below $348.69, it will suggest that higher levels are attracting profit-booking from traders. The bullish momentum may weaken if the bears sink the price below the 20-day EMA ($314).
XRP/USDT
XRP’s breakout above $0.65 on April 5 completed an inverse head and shoulders pattern, which had a target objective at $1.11. The altcoin met this target on April 6 when it reached an intraday high at $1.11.
The bulls are attempting to stall the correction near the 50% Fibonacci retracement level at $0.84 as seen from the long tail on the candlestick. If the buyers can sustain the rebound, it will suggest accumulation at lower levels and keep the prospects of a break above $1.11 alive.
On the other hand, if the XRP/USDT pair breaks below $0.84, the correction could deepen to the 61.8% Fibonacci retracement level at $0.77. Such a deep correction may delay the start of the next leg of the uptrend.
ADA/USDT
Cardano (ADA) attempted an up-move on April 6, but the long wick on the day’s candlestick suggests a lack of demand at higher levels. The bears have latched on to the opportunity today and are attempting to sink the price to $1.03.
The flat 10-day EMA ($1.18) and the RSI near the midpoint suggest a balance between supply and demand.
This neutral view will invalidate if the $1.03 support cracks. In such a case, the pair could start its journey toward the support at $0.80 and then $0.70.
DOT/USDT
The failure of the bulls to push the price above the all-time high at $146.80 on April 5 and 6 could have attracted profit-booking from the short-term traders. That may have pulled Polkadot (DOT) back below the breakout level at $42.28 today.
On the contrary, a weak rebound will suggest weakness and a lack of urgency among traders to buy aggressively. That will open the chances for the bears to pull the price below the moving averages. If that happens, the pair could drop to $26.50.
UNI/USDT
Uniswap (UNI) attempted to rise above the $32.50 resistance but failed. This shows a lack of buyers at higher levels. The bears are now attempting to sink the pair below the $27.97 to $25.50 support zone.
However, the flat 20-day EMA ($29.59) and the RSI near the midpoint suggest a balance between supply and demand. If the bulls can defend the support zone, the pair is likely to extend its range-bound action for a few more days.
LTC/USDT
Litecoin (LTC) broke above the resistance line of the symmetrical triangle on April 5 and followed it up with another up-move on April 6 that took the price to the stiff resistance at $246.96.
If the LTC/USDT pair rebounds off this level aggressively, it will suggest that the bulls are accumulating on dips. The buyers will then make one more attempt to climb the wall at $246.96. If they manage to do that, the pair could start its journey to $307.42.
On the contrary, if the bears sink the price below the moving averages, the pair could drop to the support line of the triangle.
LINK/USDT
Chainlink (LINK) broke above the $32 resistance on April 5 and followed it with another up-move on April 6 but the bulls could not challenge the all-time high at $36.93. This suggests the bears have not given up and are active at higher levels.
The bulls may then again try to propel the price above $36.93. Conversely, if the bears sink the price below the moving averages, it will suggest that the recent breakout above $32 was a bull trap. The pair could then drop to $24.
THETA/USDT
After trading in a tight range for the past few days, THETA surged today and attempted to break out of the $14 to $14.96 overhead resistance. However, the bears thwarted this attempt as seen from the long wick in today’s candlestick.
However, the bears are unlikely to give up easily. They will try to stall the uptrend in the overhead resistance zone. If they manage to do that, the pair could extend its stay inside the range for a few more days.
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.
Market data is provided by HitBTC exchange.
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