The recent surge in Bitcoin (BTC) prices to a new record high and the subsequent stabilization indicates that investors are not panicking to sell, as they believe in further price growth. As reported in a Reddit post by Santiment, this upward trend has been fueled by large Bitcoin holders, specifically those with 1,000 to 10,000 Bitcoins, who have amassed an additional 266,000 Bitcoins since the beginning of 2024.
Traditional finance institutions, not just whales, are jumping into the Bitcoin bandwagon. The introduction of spot Bitcoin exchange-traded funds has given these financial companies the green light to invest in Bitcoin. As per a Bloomberg report, two American financial advisers have each poured $20 million into Fidelity’s Wise Origin Bitcoin Fund (FBTC), surpassing the previous record investment of $17 million made by an advisor in BlackRock’s iShares Bitcoin Trust (IBIT).
While analysts remain optimistic about Bitcoin’s future, its short-term future remains unclear. Fidelity Digital Assets now views Bitcoin as fairly priced instead of undervalued. The firm has revised its mid-term forecast for Bitcoin from “positive” to “neutral.” Chris Kuiper, the company’s research director, stated in a recent blog post that Bitcoin is currently at the halfway mark in its market cycle. Most of the significant price increases typically occur during the latter part of the cycle.
What are the important resistance levels that Bitcoin and altcoins need to cross to signal an end to the corrective phase? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
On April 22, Bitcoin surpassed its 20-day moving average of $65,855. However, attempts to build on this upward trend were met with resistance at the 50-day simple moving average, which stood at $67,509. In simpler terms, Bitcoin climbed above its shorter-term average but hit a roadblock when trying to advance past its longer-term one.
The moving averages have lost their slope, and the RSI hovers around the halfway mark, suggesting equal pressure from buyers and sellers. If BTC/USDT drops below its 20-day Exponential Moving Average (EMA), it might plummet to $60,775. Support for this level is anticipated, as a fall beneath it could lead to a downward trend towards the 61.8% Fibonacci retracement mark of $54,298.
If the price goes in the opposite direction and rises above the 50-day Simple Moving Average, it’s a sign that lower prices are drawing buyers in. The pair could then rise to hit $73,777. However, overcoming this hurdle would be necessary for the pair to reach $84,000.
Ether price analysis
On April 24, Ether (ETH) made an effort to surpass its 20-day Exponential Moving Average ($3,237), but the extended shadow on the candlestick indicates that sellers remain active and unwilling to yield.
If the ETH/USDT price stays below its 20-day moving average, there’s a risk that it could fall below the key support level at $3,056. Should this occur, the pair might revisit the crucial support zone around $2,852. This area is significant since a breach of it could potentially lead to further losses towards $2,700.
If the price rises beyond its current value of $3,056 and surpasses the 20-day Exponential Moving Average, it’s a sign that selling pressure is decreasing. This may cause the pair to approach the 50-day Simple Moving Average at $3,466, and potentially reach $3,679.
BNB price analysis
The price of BNB (BNB) has been trending upward, approaching the level of $635. At this point, bullish investors may encounter significant resistance from bearish ones.
If the price significantly decreases from $635, this could indicate that the BNB/USDT pair will continue to hover within its current range for an extended period. The pair might fall towards its moving averages and potentially reach $495.
If purchasers aim to take charge, they need to surmount the hurdle at $635 first. Once achieved, this could indicate the commencement of the next phase of the upward trend, leading to $692 and ultimately reaching the projected target of $775.
Solana price analysis
At the current price of $162 for Solana (SOL), buyers may face significant opposition from sellers, making it a challenging hurdle for the bullish trend to surmount.
If the price significantly drops from $162, this may indicate that bears are aggressively protecting this level. Consequently, the SOL/USDT pair might remain trapped within the range of $162 to $126 for an extended period.
Another possibility: If the price surpasses $162, it’s a potential sign that the correction has ended. In this case, the bullish trend may resume, possibly pushing the pair towards $205. Conversely, if the price falls below $126, it might initiate a new bearish trend that could take the pair down to $100.
XRP price analysis
On April 22, XRP‘s price surpassed its 20-day moving average, which was at $0.54. However, the buying force behind the cryptocurrency wasn’t strong enough to maintain the upward trend.
On April 24, the price dropped significantly and fell below the 20-day moving average, indicating that bears are dominating the market at higher price levels. The XRP/USDT pair may continue to decline, potentially reaching a low of $0.50 before finding support at $0.46.
To regain control in the market, purchasers need to drive the price over the 20-day moving average again. This action would enhance the probability that the pair stays within the broader range of $0.46 to $0.74 for an extended period.
Dogecoin price analysis
For several days now, Dogecoin’s (DOGE) price has hovered around its 20-day Exponential Moving Average, which is at approximately $0.16. This suggests that there’s been a fierce struggle between buyers and sellers in the market.
The bulls are struggling to push the DOGE/USDT price past the resistance area formed by the 20-day moving average and the downtrend line. Should the price fall further, the bears may aim to pull it down to $0.13 once more.
Instead, if the price of bulls surges past the resistance level, it might indicate that the correction has ended. The pair may then try to advance towards $0.21, but the bears could present a strong opposition at this point.
Toncoin price analysis
On April 22, Toncoin (TON) dropped beneath its upward trendline, implying that the price increase could be coming to an end.
The bulls are likely to try and lift the price back into the channel once more. If successful, this action might indicate that the previous drop was merely a false signal of bearish sentiment, leading to a potential short squeeze and a rise in price towards $7.23.
If the price decreases from the support level of the channel, it might indicate that bears are attempting to reverse this level into resistance. Subsequently, selling pressure could intensify as the price falls below $5.42. Consequently, the TON/USDT pair may drop down to its 50-day moving average at around $5.01.
Cardano price analysis
On April 22, the price recovery of Cardano’s token (ADA) halted near its 20-day moving average, which was around $0.51. This suggests that sellers have been actively pushing down the price in the higher ranges.
The bears will try to pull the price to $0.46. This is an important level to watch out for because if the support gives way, the ADA/USDT pair could descend to $0.40. The bulls are likely to defend this level with vigor because a break below it will signal the start of a deeper correction toward $0.35.
A clear break and bounce above the 20-day moving average could indicate newfound strength in the pair. Should this level be surpassed, it might signal a shift in the near-term trend, potentially leading the pair to reach $0.57.
Avalanche price analysis
AVAX may encounter opposition when it approaches the price range between its 20-day moving average, which is around $40, and the point where it broke down, roughly at $42.
If the price significantly drops from its current value, it’s a sign that bears are still in control. The AVAX/USDT pair could potentially drop to the support range of $32 to $27. Buyers intend to fiercely protect this area since if they fail, the pair might plummet further down to $20.
If the price of bulls rises above $42 instead, it could be a sign of an extended price increase. The pair might then advance toward $50, but the bears could put up significant resistance there.
Shiba Inu price analysis
On April 21, Shiba Inu (SHIB) broke through its downward trendline, yet was unable to surpass the $0.000028 mark, which serves as the 50-day Simple Moving Average and a significant resistance level for the bulls.
If the price breaks through the 50-day moving average, it might indicate that the correction phase has ended for the SHIB/USDT pair. Subsequently, it could head towards $0.000033, and later attempt to surge past the significant resistance at $0.000039.
If the price falls significantly and drops below the 20-day moving average, this could indicate that the breakthrough above the downtrend line was a false signal or a “bull trap.” In such a case, the pair may decline towards the $0.000020 mark.
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2024-04-24 21:33