Last week, the S&P 500 Index (SPX) dropped 3.05%, while expectations for US Federal Reserve rate reductions lessened due to rising inflation figures. On the other hand, Bitcoin (BTC) experienced a smaller decrease of only 1.1%. This suggests that Bitcoin held up well during this period.
Charles Edwards, founder of Capriole Investments, mentioned in a post on X that it costs approximately $77,400 in electricity to mine a single Bitcoin block. He further explained that the price of Bitcoin falls below this cost for roughly two days every four years. Consequently, according to Edwards, Bitcoin is currently selling at a significantly LOWER PRICE than its production cost.
In the coming days, Bitcoin’s value is expected to continue fluctuating significantly as investors clash over control. If Bitcoin maintains a stable price range during this period, there could be renewed interest in certain alternative cryptocurrencies, potentially leading to another surge in their values.
Which key resistance and support points should we keep an eye on in Bitcoin and other cryptocurrencies? Let’s examine the graphs for more insight.
S&P 500 Index price analysis
The S&P 500 Index has seen a drop in value over the past few days, suggesting that some investors who had previously bought into the market may be selling off their holdings in a hurry.
In simpler terms, the moving averages have crossed paths in a downward direction, while the RSI approaches the oversold level. This suggests that bearish forces are currently dominating the market. A potential support level can be found at 4,920, where some rebound may occur.
If the price falls below the 20-day exponential moving average (around 5,104), there’s a higher chance it could slide down to hit the 38.2% Fibonacci retracement level at approximately 4,821. However, this bearish outlook would be disproved if the price climbs back above the 20-day EMA. In such a scenario, the pair might surge up to around 5,225 instead.
U.S. Dollar Index price analysis
On April 10, the U.S. Dollar Index (DXY) reversed course and climbed above the 105 mark, having previously been supported by moving averages. This price action marked the completion of a bullish triangle formation for the index.
The buying momentum of the bulls persisted, effortlessly surpassing the hurdle at 106. This paves the way for a potential advance towards 108. However, the bears are anticipated to put up a tough fight at this level. If the price takes a sudden downturn from 108, it would suggest that the bears are determinedly guarding this point. In such a scenario, the index could slide down to 105.
If the price falls and breaks below the previous level of 105 where it initially broke out, this could be an indication that the breakout was a false signal or “bull trap.” In such a case, the index might continue to decline towards its uptrend line.
Bitcoin price analysis
The bears are making an effort to prevent Bitcoin’s rise at its 20-day moving average of $65,858, but the bulls remain unwilling to give up their momentum.
With the 20-day Exponential Moving Average (EMA) being compressed and the Relative Strength Index (RSI) approaching the midpoint, it appears that selling pressure is decreasing for the BTC/USDT pair. Should buyers successfully push the price above the $67,511 mark represented by the 50-day Simple Moving Average, there’s a potential for an uptrend towards $73,777.
if bears aim to take over, they must act swiftly and pull the price down below the $60,775 support; should they succeed, the pair could initiate a more significant correction towards the 61.8% Fibonacci retracement level of $54,298.
Ether price analysis
The price of Ethereum (ETH) has reached the 20-day moving average, which is at $3,234, suggesting that buyers are attempting a resurgence.
The moving average of Ethereum’s price over the past 20 days is becoming less sloped, and the Relative Strength Index (RSI) is hovering around its midpoint. This suggests that the market forces of supply and demand are roughly equal. Should Ethereum’s price decrease from this moving average, the ETH/USDT pair might fall to a crucial support level at $3,056. The bulls must protect this position since if it weakens, the next potential resistance could be at $2,850.
Positively speaking, if the price surpasses the 20-day Exponential Moving Average (EMA), it will bolster the position of buyers. The pair could then advance towards the 50-day Simple Moving Average ($3,481). Afterward, it might reach $3,679. A leap over this threshold would imply that the downtrend might have ended.
BNB price analysis
On April 20, BNB (BNB) managed to surpass its 20-day moving average, which was at $568. This development potentially paved the way for an upward trend towards the resistance level of $635.
At around $635, the struggle between bulls and bears is expected to be intense. If the bulls emerge victorious, the BNB/USDT pair may initiate its next upward phase towards $692, followed by a potential rise to reach the target price of $775.
If the price significantly drops below the resistance level instead of continuing to rise, this could indicate that the bears are unwilling to give up their position. This could result in the pair remaining trapped between $495 and $635 for an extended period.
Solana price analysis
The price of Solana (SOL) has climbed up to $156, which is now acting as a significant barrier for further growth due to selling pressure from the market bears.
If the cost drops beneath the moving averages, this might indicate that investors’ sentiment remains pessimistic and they are selling even during uptrends. The price may then decrease towards the robust support at $126. Dropping below this support could potentially trigger a slide down to $100.
If the price increases further and surpasses the moving averages, this could indicate that the bulls are regaining strength. In such a scenario, the SOL/USDT pair may try to advance towards the resistance level of $205.
XRP price analysis
The price of XRP (XRP) is bouncing back and has now surpassed its 20-day moving average, which stands at around $0.54. This suggests that buyers have been actively purchasing XRP at cheaper prices.
The bears are expected to put up a strong fight at the 20-day moving average. If the price experiences a significant decline from its current position, the bears will aim to pull the price down towards the $0.46 to $0.41 support range.
Instead of jumping above the 20-day Exponential Moving Average (EMA) price, if buyers do so, it could indicate that the XRP/USDT pair may persist in trading within the larger range of $0.46 and $0.74 for an extended period.
Toncoin price analysis
Over the past few days, Toncoin (TON) has hovered around the lower boundary of its uptrending channel.
The bulls’ inability to initiate a robust recovery above the 20-day moving average ($6) indicates a paucity of bold purchases at present prices. This weak buying position heightens the possibility of a breach beneath the trendline, potentially triggering intensified selling and leading the TON/USDT pair towards the 50-day moving average ($4.90).
The clock is ticking for the bulls; they need to act fast and propel the price above the $6.50 mark to halt the downtrend. Once accomplished, the pair could potentially surge towards $7.23, followed by an attempt at reaching the resistance line.
Dogecoin price analysis
Dogecoin’s price has hit a roadblock at its 20-day moving average, which is around $0.16. However, an encouraging signal is that the buying force hasn’t given up significantly to the selling pressure.
The price of DOGE relative to USDT is expected to go up and surpass its moving averages, reaching the downtrend line. This line is an important point for bears to guard because if it’s broken, it might suggest that the downward trend has ended. Subsequently, there could be a price increase towards $0.21, followed by further potential growth to $0.23.
An alternative interpretation is that if the price significantly drops below the moving averages or the downward trendline, this could indicate that the bearish market forces are dominating. In this scenario, sellers may attempt to push the price lower towards $0.14 and then potentially even reach $0.12.
Cardano price analysis
Reaching $0.52, the 20-day Exponential Moving Average (EMA) for Cardano (ADA), is significant and warrants attention. The selling forces are expected to put up strong resistance at this point.
If the price falls below the 20-day moving average (EMA) for ADA/USDT, there’s a chance it could revisit the $0.46 support level. If this level holds strong and the pair bounces back, it might indicate the end of the correction phase. This, in turn, could pave the way for the pair to advance past the 20-day EMA, potentially reaching $0.57 and even $0.63.
If the price were to take a turn for the worse and fall significantly below $0.46, this would indicate that the bulls have lost control and the bears are now in charge. The pair could then drop further down to hit the important support level at $0.40.
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2024-04-22 21:40