- April 21, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Bitcoin and select altcoins have fallen below their respective support levels, a worrying sign that the bulls could be losing their grip.
Bitcoin (BTC) and most major cryptocurrencies have pulled back from their recent local highs, signaling profit booking by traders. Is the current pullback a buying opportunity or has the trend turned lower? This is likely to be the question in every trader’s mind.
Bollinger Bands creator John Bollinger said in a recent tweet that Bitcoin had turned down from the upper Bollinger Band and reached the middle bank, near its breakout level. He said it was a “logical place” and advised traders to “pay attention.”
The correction could worry short-term crypto traders but for the long-term investors, who believe that a bottom is in, this could prove to be an opportunity to build their portfolio with cryptocurrencies of their choice. It is generally a good strategy to avoid buying on the way down and wait for the price to stop falling before resuming purchases.
What are the levels that may act as strong support? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin fell and closed below the 20-day exponential moving average ($28,869) on April 19. This was the first close below the 20-day EMA since March 13, indicating weakness.
Buyers tried to stage a recovery on April 20 but they could not overcome the barrier at the 20-day EMA. This suggests that the bears are trying to flip the level into resistance. The BTC/USDT pair may next slip to $26,500 and thereafter to the neckline of the inverse head and shoulders (H&S) pattern at $25,250.
If the price rebounds off $25,250, it will indicate that the neckline is acting as a higher floor. The bulls will then try to propel the price back above the 20-day EMA. If they manage to do that, the pair may rise to $32,400.
Ether price analysis
The bulls tried to maintain the price above the 20-day EMA ($1,942) on April 19 and 20 but the bears had other plans. They maintained their selling pressure and yanked Ether (ETH) below the 20-day EMA on April 21.
The first support on the downside is the 38.2% Fibonacci retracement level of $1,846. This level is likely to attract strong buying by the bulls. If the price turns up from this level, it improves the prospects for a rally to $2,200.
Contrary to this assumption, if the price continues lower and breaks below $1,846, the ETH/USDT pair could tumble to the 50% retracement level of $1,755 and thereafter to the 61.8% retracement level of 1,663.
BNB price analysis
BNB (BNB) rebounded off the $318 support on April 21 and rose above the 20-day EMA ($324). This suggests that the bulls are making a strong effort to arrest the decline at $318.
The flattish 20-day EMA and the relative strength index (RSI) just above the midpoint do not give a clear edge either to the bulls or the bears. If bulls thrust the price above the $338 to $350 resistance zone, the BNB/USDT pair may pick up momentum and soar toward $400.
On the contrary, if the price once again turns down and breaks below $318, it will suggest that the bears remain active at higher levels. The pair may then slump to the 200-day simple moving average ($295), which is an important level for the bulls to defend.
XRP price analysis
The bulls tried to start a recovery in XRP (XRP) and push the price above the 20-day EMA ($0.49) on April 19 and 20 but the bears were in no mood to relent.
The bulls tried to arrest the fall near the 50% Fibonacci retracement level of $0.47 but the bears maintained the selling pressure and pulled the price below it. The XRP/USDT pair may next drop to the 200-day SMA ($0.41).
It looks like the pair may trade inside a large range between $0.56 and $0.30 for a while longer. If the price rebounds off the 200-day SMA, the pair may trade in the upper half of the range while a break below it may keep the pair stuck in the lower half.
Cardano price analysis
The bears succeeded in pulling Cardano (ADA) back below the neckline of the inverse H&S pattern on April 20. This suggests that the bears are making a comeback.
If bears pin the price below the neckline, it will signal that the breakout on April 13 may have been a bull trap. That could lead to long liquidation, which may extend the decline to the 200-day SMA ($0.35). This level is likely to attract solid buying by the bulls.
The flattish 20-day EMA ($0.40) and the RSI near the center do not give a clear advantage either to the bulls or the bears. If bulls want to come out on top, they will have to kick and sustain the price above the neckline. The ADA/USDT pair may then rise to $0.46.
Dogecoin price analysis
Dogecoin (DOGE) witnessed hugely volatile moves on April 19 and 20. The bulls are trying to hold the 200-day SMA ($0.08) but are facing stiff resistance from the bears.
If the price turns down from the 20-day EMA ($0.09), it will suggest that the bears are selling on every minor rally. That will increase the risk of a collapse below the 200-day SMA. If that happens, the DOGE/USDT pair may dive to the crucial support at $0.07.
This negative view will be invalidated if the price turns up from the current level and soars above $0.10. That will indicate solid buying near the 200-day SMA. The pair may then reach $0.11 where the bulls may again face formidable resistance from the bears.
Polygon price analysis
The uncertainty of the symmetrical triangle pattern in Polygon (MATIC) resolved to the downside with the break below the support line on April 19.
The bulls are trying to protect the 200-day SMA ($1.01) but any recovery is likely to face stiff resistance at the 20-day EMA ($1.11). If the price turns down from the 20-day EMA, it will increase the possibility of a break below the 200-day SMA. That could intensify selling and sink the MATIC/USDT pair toward the pattern target of $0.74.
Contrary to this assumption, if bulls thrust the price above the 20-day EMA, it will suggest strong buying at lower levels. The pair may then rise to the resistance line of the triangle. A break and close above this level may turn the table in favor of the bulls.
Related: Warren Buffett was wrong about a ‘rat poison’ Bitcoin portfolio, data shows
Solana price analysis
Solana (SOL) has been stuck between the 20-day EMA ($22.61) and the 200-day SMA ($20.91) for the past two days.
Although the bears have yanked the price below the 20-day EMA, they have not yet been able to retest the 200-day SMA. This suggests a lack of aggressive selling at lower levels.
The 20-day EMA is flattening out and the RSI is just below the midpoint, indicating a range-bound action in the near term.
The SOL/USDT pair may swing inside the large range between $27.12 and $15.28 for some time. If the price slips below the 200-day SMA, the pair may drop to $18.70 but if the price turns up and rises above the 20-day EMA, the pair may surge to $27.12.
Polkadot price analysis
Polkadot (DOT) turned down sharply and plunged below the uptrend line on April 19. This indicates aggressive selling by the bears.
The bulls tried to push the price back above the 20-day EMA on April 20 but the long wick on the candlestick shows the bears protected the level successfully. That started a downward move toward the 200-day SMA ($5.93).
Buyers are expected to fiercely guard the zone between the 200-day SMA and $5.70 because if they fail to do that, the selling may intensify further and the DOT/USDT pair could dive to $5.15. This bearish view will invalidate in the near term if bulls push and sustain the price back above the uptrend line.
Litecoin price analysis
Litecoin (LTC) plunged below the 20-day EMA ($93) on April 19, indicating that the bullish momentum has weakened.
Buyers tried to push the price back above the 20-day EMA on April 20 but the bears did not relent. This suggests that the bears are trying to flip the 20-day EMA into resistance.
The sellers will next try to strengthen their position further by sinking the price below the strong support at $85. If they manage to do that, the LTC/USDT pair may reach the 200-day SMA ($78).
If bulls want to prevent this decline, they will have to quickly drive the price above the 20-day EMA and the overhead resistance of $96.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
