The U.S. dollar index (DXY) has risen above the highs created in March 2020 and may next challenge the multi-year highs set in January 2017. Bitcoin’s (BTC) price action is generally inversely connected to DXY. Therefore, unless the dollar reverses its sharp uptrend, a strong recovery in Bitcoin may be difficult.
Although Bitcoin has not confirmed a bottom, institutional investors seem to have started their purchases at lower levels. Canada’s Purpose Bitcoin exchange-traded fund added 1,132 BTC to its holdings, according to data analytics platform Coinglass. Behavior analytics resource Santiment also suggested that the crowd’s interest in buying the dip hit a six-week high.
Could Bitcoin and altcoins start a recovery from their respective support levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin’s recovery on April 26 stalled at the 20-day exponential moving average ($40,618), suggesting that the sentiment remains negative and traders are selling on rallies. A minor positive is that the price has rebounded off the support line of the ascending channel today indicating that bulls are attempting to defend this level.
Conversely, if the price turns down from the current level or the 20-day EMA and breaks below the channel, it will suggest that bears are in control. The pair could then slide to $34,300 and later to $32,917.
ETH/USDT
Ether (ETH) once again turned down from the 20-day EMA ($3,014) on April 26, indicating that bears continue to sell on rallies to this level. The bears will now try to pull the price to the uptrend line.
Alternatively, if the price rises from the current level, the buyers will make one more attempt to propel the pair above the 20-day EMA. If they manage to do that, the pair could rise to $3,200 and later attempt an up-move to the 200-day SMA ($3,470).
BNB/USDT
Binance Coin (BNB) closed below the immediate support at $391 on April 26, indicating near-term weakness. The bulls are currently attempting to push the price back above the breakdown level.
Contrary to this assumption, if bears flip the $391 level into resistance, the BNB/USDT pair could resume its downtrend and drop toward the strong support at $350. The downsloping 20-day EMA and the RSI in the negative zone indicate that the path of least resistance is to the downside.
XRP/USDT
Ripple’s (XRP) long tail on the April 25 candlestick shows strong buying at lower levels. However, the bulls could not sustain the price above $0.70 on April 26, resulting in another sell-off.
Contrary to this assumption, if the price rebounds off the current level, the bulls will make another attempt to push and sustain the pair above the breakdown level at $0.69. If they succeed, the pair could rise to the 50-day SMA ($0.77).
SOL/USDT
The bulls have been defending the support line of the ascending channel for the past two days but they haven’t been able to push Solana (SOL) above the 20-day EMA ($103). This suggests that demand dries up at higher levels.
Alternatively, if the price rises from the current level and breaks above the 20-day EMA, it will suggest accumulation at the support line. The pair could then rally to $110. A break and close above this level will suggest that the pair may extend its stay inside the channel for a few more days.
LUNA/USDT
Terra’s LUNA token has been oscillating above and below the 20-day EMA ($91) for the past few days. The buyers pushed the price above the 50-day SMA ($94) on April 25 but could not sustain the higher levels.
If the price turns up from the current level and rises above the 50-day SMA, the bulls will again attempt to propel the pair above the psychological resistance at $100. If they succeed, the pair may rise to the all-time high at $119.
The flattish 20-day EMA and the RSI just below the midpoint do not give a clear advantage either to the bulls or the bears.
ADA/USDT
After repeatedly failing to break above the psychological level at $1, Cardano (ADA) has gradually been dropping toward the strong support at $0.74.
Contrary to this assumption, if the price rises from the current level or the $0.74 support, the bulls will attempt to push the pair above the 20-day EMA. If they do that, the pair could rise to $1. A break and close above this resistance could open the doors for a possible rally to $1.26.
Related: Ex-BitMEX CEO explains how Bitcoin will have hit $1 million by 2030
AVAX/USDT
Avalanche (AVAX) has been trading between $65 and $99 for the past few days. The price has gradually drifted down toward the support of the range where the buyers are expected to mount a strong defense.
Alternatively, if the price turns down from the current level or the 20-day EMA and breaks below $65, it could clear the path for a drop to $51. The downsloping 20-day EMA and the RSI in the negative zone indicate the path of least resistance is to the downside.
DOGE/USDT
Dogecoin (DOGE) soared to the overhead resistance at $0.17 on April 25 but the bulls could not overcome this barrier. The failure to do so may have attracted profit-booking by short-term traders which pulled the price back below the 20-day EMA ($0.14) on April 26.
The next trending move could start after the bulls push and sustain the pair above $0.17 or bears sink the price below the support at $0.10. Until then, volatile range-bound action is likely to continue.
DOT/USDT
Polkadot (DOT) has been stuck inside a range between $23 and $16 for the past several days. This means traders buy the dips to the support of the range and sell on rallies to the resistance level.
Conversely, if the price slips and sustains below $16, it will indicate that supply exceeds demand. The pair could then decline to the critical support at $14. This is an important level for the bulls to defend because a break below it could signal the resumption of the downtrend.
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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